TME

Tencent Music Entertainment Group

Communication Services · $12.2B market cap

Share price

$7.74

close of Oct 3, 2026

Fair value

$13.83

Sticker Price

Payback Price

$5.53

buy price

Undervalued

TME is Undervalued: at $7.74 it trades 44% below its fair value of $13.83. Its buy price (Payback Price) is $5.53, 29% below today's price. Business quality is strong: 4 of 5 key numbers clear the 10% bar.

How we valued it

Free Cash Flow. Sales grew 5% a year over the last 3 years, below the 15% we look for in a fast grower, so we value it on its free cash flow instead of an earnings forecast.

Business quality

4 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth20.9% a year✓

Equity per share growth12.7% a year✓

Sales growth10.8% a year✓

Free cash flow growth19.9% a year✓

Return on invested capital9.0%✗

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Superinvestors

3 of the investors we track hold TME. In Q2 2026, 1 opened a position and 2 sold out. Who we track

Li Lu

Himalaya Capital Management · as of Q2 2026

$55.0M

6,590,836 shares

Mason Hawkins

Southeastern Asset Management · as of Q2 2026

$19.2M

2,305,210 shares

Polen Capital Management

Polen Capital Management · as of Q2 2026

$3.4M

407,182 shares

Moves in Q2 2026

New position: Mason Hawkins

Sold out: William Von Mueffling, Sarah Ketterer

Insider activity

Since Sep 29, 2026: no open-market purchases and 1 other filing (stock awards, tax withholding and similar). Why purchases matter

Other filings

PAN TSAI-CHUN

Group Vice President · 2026-09-29

Option exercise

$600K

About Tencent Music Entertainment Group

Tencent Music Entertainment Group (TME) is a premier operator of online music entertainment platforms across the People's Republic of China, offering a range of services including music streaming, digital karaoke, and live interactive broadcasting. Its offerings encompass popular streaming platforms like QQ Music, Kugou Music, and Kuwo Music, which facilitate personalized music discovery and listening for users. The…

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