Tencent Music Entertainment Group (TME) P/E Ratio History
Historical price-to-earnings valuation from 2018 to 2025
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TME Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 8, 2026, Tencent Music Entertainment Group (TME) trades at a price-to-earnings ratio of 14.9x, with a stock price of $9.27 and trailing twelve-month earnings per share of $6.93.
The current P/E is 303% above its 5-year average of 3.7x. Over the past five years, TME's P/E has ranged from a low of 2.1x to a high of 8.2x, placing the current valuation at the 100th percentile of its historical range.
Compared to the Communication Services sector median P/E of 15.4x, TME is roughly in line with its sector peers. The sector includes 108 companies with P/E ratios ranging from 0.1x to 179.7x.
The PEG ratio of 1.21 (P/E divided by 37% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, TME trades at a notable discount to the S&P 500 median P/E of 25.1x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our TME DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
TME P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $88B | 34.7 | - | +91% | |
| $7B | 23.6 | 0.45 | -2% | |
| $4.2T | 38.5 | 2.16 | +23% | |
| $2.9T | 37.8 | 1.35 | +30% | |
| $4.8T | 36.8 | 1.23 | +34% | |
| $9B | 11.9Lowest | 0.24Best | +146%Best | |
| $16B | 44.3 | - | -17% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
TME Historical P/E Data (2018–2025)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q3 | $23.34 | $6.98 | 3.3x | -36% | |
| FY2025 Q2 | Mon Jun 30 2025 00:00:00 GM | $19.49 | $6.60 | 3.0x | -43% |
| FY2025 Q1 | Mon Mar 31 2025 00:00:00 GM | $14.41 | $6.12 | 2.4x | -55% |
| FY2024 Q4 | $11.35 | $4.26 | 2.7x | -49% | |
| FY2024 Q3 | Mon Sep 30 2024 00:00:00 GM | $12.05 | $3.84 | 3.1x | -40% |
| FY2024 Q2 | Sun Jun 30 2024 00:00:00 GM | $14.05 | $3.58 | 3.9x | -25% |
| FY2024 Q1 | Sun Mar 31 2024 00:00:00 GM | $11.19 | $3.32 | 3.4x | -35% |
| FY2023 Q4 | Sun Dec 31 2023 00:00:00 GM | $9.01 | $3.12 | 2.9x | -45% |
| FY2023 Q3 | Sat Sep 30 2023 00:00:00 GM | $6.38 | $3.00 | 2.1x | -59% |
| FY2023 Q2 | Fri Jun 30 2023 00:00:00 GM | $7.38 | $2.92 | 2.5x | -52% |
| FY2023 Q1 | Fri Mar 31 2023 00:00:00 GM | $8.28 | $2.63 | 3.1x | -40% |
| FY2022 Q4 | Sat Dec 31 2022 00:00:00 GM | $8.28 | $2.28 | 3.6x | -30% |
Average P/E for displayed period: 5.2x
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Start ComparisonTME — Frequently Asked Questions
Quick answers to the most common questions about buying TME stock.
Is TME stock overvalued or undervalued?
TME trades at 14.9x P/E, above its 5-year average of 3.7x. The 100th percentile ranking indicates a premium to historical valuation.
How does TME's valuation compare to peers?
Tencent Music Entertainment Group P/E of 14.9x compares to sector median of 15.4x. The discount suggests lower growth expectations or higher risk.
What is TME's PEG ratio?
TME PEG ratio is 1.21. Between 1-2 suggests valuation aligns with growth. Historical P/E data spans 2018-2025.