Tencent Music Valuation
| TME Stock | USD 11.51 0.44 3.97% |
At this time, the company appears to be overvalued. Tencent Music Entert has a current Real Value of $9.99 per share. The regular price of the company is $11.51. Our model measures the value of Tencent Music Entert from inspecting the company fundamentals such as Operating Margin of 0.26 %, return on equity of 0.11, and Shares Outstanding of 857.15 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Tencent Music's valuation include:
Price Book 2.2376 | Enterprise Value 16.8 B | Enterprise Value Ebitda 16.5301 | Price Sales 0.6652 | Forward PE 14.771 |
Overvalued
Today
Please note that Tencent Music's price fluctuation is somewhat reliable at this time. Calculation of the real value of Tencent Music Entert is based on 3 months time horizon. Increasing Tencent Music's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Tencent stock is determined by what a typical buyer is willing to pay for full or partial control of Tencent Music Entertainment. Since Tencent Music is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Tencent Stock. However, Tencent Music's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 11.51 | Real 9.99 | Target 8.65 | Hype 11.54 | Naive 10.61 |
The real value of Tencent Stock, also known as its intrinsic value, is the underlying worth of Tencent Music Entert Company, which is reflected in its stock price. It is based on Tencent Music's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Tencent Music's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Tencent Music Entertainment helps investors to forecast how Tencent stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Tencent Music more accurately as focusing exclusively on Tencent Music's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Tencent Music's intrinsic value based on its ongoing forecasts of Tencent Music's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Tencent Music's closest peers. If more than one evaluation category is relevant for Tencent Music we suggest using both methods to arrive at a better estimate.
Tencent Music Cash |
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Tencent Valuation Trend
Comparing Tencent Music's enterprise value against its market capitalization is a good way to estimate the value of Tencent Music Entertainment uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Tencent Music Total Value Analysis
Tencent Music Entertainment is at this time expected to have company total value of 16.85 B with market capitalization of 18.52 B, debt of 6.05 B, and cash on hands of 9.55 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Tencent Music fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
16.85 B | 18.52 B | 6.05 B | 9.55 B |
Tencent Music Investor Information
About 57.0% of the company shares are owned by institutional investors. The book value of Tencent Music was at this time reported as 41.06. The company has Price/Earnings To Growth (PEG) ratio of 0.74. Tencent Music Entert last dividend was issued on the 31st of May 2024. Based on the measurements of operating efficiency obtained from Tencent Music's historical financial statements, Tencent Music Entertainment is not in a good financial situation at this time. It has a very high probability of going through financial hardship in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.11 | 0.2183 |
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| Total Cash From Operating Activities | 5.5 B | 7.3 B |
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| Operating Income | 3.6 B | 6.1 B |
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Tencent Music Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tencent Music has an asset utilization ratio of 36.74 percent. This indicates that the Company is making $0.37 for each dollar of assets. An increasing asset utilization means that Tencent Music Entertainment is more efficient with each dollar of assets it utilizes for everyday operations.Tencent Music Ownership Allocation
Tencent Music Entert shows a total of 857.15 Million outstanding shares. Over half of Tencent Music's outstanding shares are owned by institutional holders. These institutional holders are typically referred to as corporate investors that take positions in a given instrument to benefit from reduced trade commissions. Please note that on February 12, 2021, Representative Doris O Matsui of US Congress acquired under $15k worth of Tencent Music Entert's common stock.Tencent Music Profitability Analysis
The company reported the last year's revenue of 27.75 B. Total Income to common stockholders was 6.04 B with profit before taxes, overhead, and interest of 8.77 B.Tencent Music Past Distributions to stockholders
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Tencent Music's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Tencent Music and how it compares across the competition.
About Tencent Music Valuation
The stock valuation mechanism determines Tencent Music's current worth on a weekly basis. Our valuation model uses a comparative analysis of Tencent Music. We calculate exposure to Tencent Music's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Tencent Music's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 9.8 B | 8 B | |
| Pretax Profit Margin | 0.22 | 0.11 | |
| Operating Profit Margin | 0.22 | 0.11 | |
| Net Profit Margin | 0.18 | 0.10 | |
| Gross Profit Margin | 0.35 | 0.26 |
A single share of Tencent Music represents a small ownership stake in the entity. As a stockholder of Tencent, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Tencent Music Dividends Analysis For Valuation
Please note that Tencent Music has scaled down on payment of dividends at this time. The current year's Earnings Yield is expected to grow to 0.05, whereas Retained Earnings are forecasted to decline to about 9 B.
There are various types of dividends Tencent Music can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Tencent shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Tencent Music Entertainment directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Tencent pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Tencent Music by the value of the dividends paid out.
Tencent Music Growth Indicators
Investing in growth stocks can be very risky. If the company such as Tencent Music does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.6 B | |
| Quarterly Earnings Growth Y O Y | 0.351 | |
| Forward Price Earnings | 14.771 |
Tencent Music Current Valuation Indicators
Valuation refers to the process of determining the present value of Tencent Music Entertainment and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Tencent we look at many different elements of the entity such as Tencent's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Tencent Music, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Tencent Music's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Tencent Music's worth.Complementary Tools for Tencent Stock analysis
When running Tencent Music's price analysis, check to measure Tencent Music's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Tencent Music is operating at the current time. Most of Tencent Music's value examination focuses on studying past and present price action to predict the probability of Tencent Music's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Tencent Music's price. Additionally, you may evaluate how the addition of Tencent Music to your portfolios can decrease your overall portfolio volatility.
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