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Tencent Music Entertainment GroupTME -2.37%75 5-Year Yield-on-Cost % is 2.58 as of Jul. 30, 2026, which is 126% above its 10-year median of 1.14. GuruFocus rates TME with a GF Score™ of 75/100 and a GF Value™ of $15.42 (Significantly Undervalued). Among 181 Interactive Media companies, Tencent Music Entertainment Group ranks worse than 56.91% on this metric.
The historical rank and industry rank for Tencent Music Entertainment Group's 5-Year Yield-on-Cost % or its related term are showing as below:
TME'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.7 Med: 1.14 Max: 2.87
Current: 2.58
During the past 10 years, Tencent Music Entertainment Group's highest Yield on Cost was 2.87. The lowest was 0.70. And the median was 1.14.
TME's 5-Year Yield-on-Cost % is ranked worse than 56.91% of 181
companies
in the Interactive Media industry
Industry Median: 3.54
vs TME: 2.58
Tencent Music Entertainment Group (NYSE:TME) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Tencent Music Entertainment Group 5-Year Yield-on-Cost % Related Terms
TME vs PINS, MTCH, SNAP: 5-Year Yield-on-Cost % Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tencent Music Entertainment Group 5-Year Yield-on-Cost % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's 5-Year Yield-on-Cost % falls into.
Tencent Music Entertainment Group 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Tencent Music Entertainment Group (TME) has a 5-Year Yield-on-Cost % of 2.58 as of Jul. 30, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Tencent Music Entertainment Group and its competitors. This is 126% above median its historical median of 1.14. Over the past decade, Tencent Music Entertainment Group's 5-Year Yield-on-Cost % has ranged from 0.70 to 2.87. According to the industry distribution chart, Tencent Music Entertainment Group ranks #103 out of 181 companies in the Interactive Media industry, placing it in the top 56.9%.
Is Tencent Music Entertainment Group's 5-Year Yield-on-Cost % too high?
Tencent Music Entertainment Group's current 5-Year Yield-on-Cost % of 2.58 is 126% above median its 10-year median of 1.14. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 2.87. The Interactive Media industry median 5-Year Yield-on-Cost % is 3.54. Tencent Music Entertainment Group's value of 2.58 is 27.1% below this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #103 out of 181 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Tencent Music Entertainment Group has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's 5-Year Yield-on-Cost % compare to PINS and MTCH?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #103 out of 181 companies for 5-Year Yield-on-Cost %. This places Tencent Music Entertainment Group in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.54. Tencent Music Entertainment Group's value of 2.58 is 27.1% below this benchmark. Historically, Tencent Music Entertainment Group's own 5-Year Yield-on-Cost % has ranged from 0.70 to 2.87 over the past decade. While the company's 10-year median is 1.14 vs. the industry median of 3.54, Tencent Music Entertainment Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Interactive Media company?
The median 5-Year Yield-on-Cost % among Interactive Media companies is 3.54, based on 181 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current 5-Year Yield-on-Cost % of 2.58 is 27.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median 5-Year Yield-on-Cost % is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current 5-Year Yield-on-Cost % is 2.58, which is 126% above median its own 10-year median of 1.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tencent Music Entertainment Group stock overvalued right now?
Based on GuruFocus' analysis, Tencent Music Entertainment Group (TME) is currently considered Significantly Undervalued. The stock's GF Value™ is $15.42, compared to a current price of $9.48 — trading 38.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 2.58, which is 126% above median its 10-year median of 1.14 and 27.1% below the Interactive Media industry median of 3.54. Tencent Music Entertainment Group's overall GF Score™ is 75/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Tencent Music Entertainment Group (TME), the current 5-Year Yield-on-Cost % is 2.58 as of Jul. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tencent Music Entertainment Group (TME) Overvalued in 2026?
Based on GuruFocus' analysis, Tencent Music Entertainment Group stock appears to be undervalued.
The current stock price of $9.48 is trading 38.5% below its estimated GF Value™ of $15.42.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for TME:
5-Year Yield-on-Cost %: 2.58 (126% above median its 10-year median of 1.14)
GF Value™: $15.42 vs. price of $9.48 (38.5% below fair value)
Industry Position: 27.1% below the Interactive Media median (#103 of 181)
No single metric tells the full story. See the TME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tencent Music Entertainment Group Business Description
Tencent Music is the largest online music streaming platform in China, established in 2016 through the merger of QQ Music, Kuwo Music, and Kugou Music. Tencent, its largest shareholder, holds over 50% of the shares and more than 90% of the voting rights. Beyond streaming services, Tencent Music generates revenue through a diverse range of offerings, including podcasts, livestreaming, concerts, and karaoke.
75GF Score
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