Tencent Music Entertainment Group
Financial ratios & Valuation

Forward Multiples (2025 – 2027)

202520262027
Price/Earnings ratio
0.740.624.09
Price/Sales ratio
1.321.181.14
Earnings per Share (EPS)
$34.02$40.25$6.15

Historical Multiples (2016 – 2023)

2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
1.92K111.6176.2733.5850.0523.8524.8820.6222.5950.05
Price/Sales ratio
36.2113.477.365.257.132.313.223.655.077.13
Price/Book Value ratio
7.655.663.703.063.981.431.901.812.133.98
Price/Cash Flow ratio
180.9059.2024.8221.5742.5713.7912.2213.8313.8542.57
Price/Free Cash Flow ratio
189.8261.0825.4722.6147.4429.1214.2316.4414.6947.44
Price/Earnings Growth ratio
N/A0.071.690.3217.37-0.87-0.670.120.1017.37
Dividend Yield
N/AN/A0.01%0.02%N/A0.12%0.08%N/A0.16%0.02%
Profitability Indicator Ratios
Gross Profit Margin
28.25%34.69%38.33%34.1%31.90%30.09%30.95%35.29%41.00%34.1%
Operating Profit Margin
2.36%14.50%10.74%18.17%16.15%8.80%15.67%21.83%28.79%18.17%
Pretax Profit Margin
2.61%14.54%10.55%17.85%15.88%11.62%15.43%21.78%28.44%17.85%
Net Profit Margin
1.88%12.07%9.65%15.65%14.25%9.69%12.97%17.72%21.52%15.65%
Effective Tax Rate
25.43%17.40%8.53%12.40%9.84%11.48%12.21%13.64%18.63%12.40%
Return on Assets
0.34%4.42%4.10%7.55%6.08%4.50%5.48%6.51%7.08%7.08%
Return On Equity
0.39%5.07%4.85%9.13%7.95%6.01%7.64%8.80%9.99%9.13%
Return on Capital Employed
0.49%6.01%5.31%10.45%8.02%4.84%8.03%9.53%11.55%10.45%
Liquidity Ratios
Current Ratio
N/AN/A3.333.173.30N/AN/AN/A2.263.30
Quick Ratio
1.972.103.323.163.292.562.262.492.253.29
Cash ratio
1.211.462.781.811.150.630.811.120.661.15
Days of Sales Outstanding
67.7143.2728.5131.5435.0542.1734.3838.3738.4831.54
Days of Inventory outstanding
1.631.521.090.560.330.400.260.160.400.33
Operating Cycle
69.3444.8029.6032.1035.3842.5734.6538.5438.8832.10
Days of Payables Outstanding
116.4153.1857.0555.7265.5472.3493.23101.75144.9755.72
Cash Conversion Cycle
-47.07-8.38-27.44-23.61-30.16-29.77-58.58-63.21-106.08-30.16
Debt Ratios
Debt Ratio
N/AN/AN/AN/A0.070.070.080.070.040.07
Debt Equity Ratio
N/AN/AN/AN/A0.090.100.110.100.050.09
Long-term Debt to Capitalization
N/AN/AN/AN/A0.090.090.100.090.050.09
Total Debt to Capitalization
N/AN/AN/AN/A0.090.090.100.090.050.09
Interest Coverage Ratio
N/AN/AN/A60.7138.41N/AN/AN/A48.2838.41
Cash Flow to Debt Ratio
N/AN/AN/AN/A0.941.031.351.302.802.80
Company Equity Multiplier
1.141.141.181.201.301.331.391.351.331.20
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.200.220.290.240.160.160.260.260.350.24
Free Cash Flow / Operating Cash Flow Ratio
0.950.960.970.950.890.470.850.840.980.95
Cash Flow Coverage Ratio
N/AN/AN/AN/A0.941.031.351.302.802.80
Short Term Coverage Ratio
N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Dividend Payout Ratio
N/AN/A1.03%0.80%N/A2.90%2.01%N/AN/AN/A