Tencent Music Entertainment Group (TME) Financial Ratios: P/E, ROE & More

Tencent Music Entertainment Group (TME) Financial Ratios

For fiscal 2025 (fiscal year ended Dec 31, 2025), Tencent Music Entertainment Group had a P/E ratio of 17.18 (down from 19.31), return on equity of 14.9% (up from 11.2%), debt-to-equity of 0.05 (down from 0.09) and a current ratio of 2.23 (up from 2.09). A current ratio of 2.23 means current assets exceed current liabilities. Its dividend yield was 1.41% with a payout ratio of 17.9%.

Tencent Music Entertainment Group Financial Ratios Analysis

Valuation, profitability, leverage, and liquidity ratios

Income Statement Balance Sheet Cash Flow Ratios

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Breakdown	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020
Period ending	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Valuation Ratios
P/E Ratio	17.18	19.31	20.55	24.88	24.32	50.71
Forward P/E	18.06	15.15	16.19	17.62	19.91	36.72
P/S Ratio	5.77	4.52	3.64	3.23	2.36	7.23
P/B Ratio	2.29	1.84	1.77	1.86	1.44	4.00
Price/Tangible Book	3.48	2.93	3.17	3.85	2.74	6.44
Price/FCF	19.13	12.89	14.10	12.37	14.50	44.11
Price/OCF	18.56	12.49	13.78	12.23	14.06	43.13
PEG Ratio	1.08	0.79	0.87	0.98	26.73	1.75
Enterprise Value Ratios
EV/Revenue	5.30	3.68	3.12	2.83	1.91	6.60
EV/EBITDA	15.97	12.60	14.78	17.01	14.42	40.23
EV/EBIT	17.81	13.79	17.34	22.56	19.02	47.58
EV/FCF	17.57	10.48	12.08	10.83	11.76	40.25
Profitability & Returns
Return on Equity (ROE)	14.86%	11.20%	9.82%	7.66%	6.20%	8.66%
Return on Assets (ROA)	6.35%	5.70%	4.38%	3.31%	2.90%	4.18%
Return on Invested Capital (ROIC)	15.08%	14.00%	11.68%	8.88%	8.15%	13.60%
Return on Capital Employed (ROCE)	11.10%	10.20%	7.90%	6.40%	5.50%	6.90%
Leverage & Solvency Ratios
Debt/Equity	0.05	0.09	0.11	0.12	0.10	0.10
Debt/EBITDA	0.35	0.72	1.01	1.27	1.29	1.13
Debt/FCF	0.38	0.61	0.84	0.81	1.05	1.15
Liquidity Ratios
Current Ratio	2.23	2.09	2.49	2.27	2.56	3.30
Quick Ratio	2.00	1.92	2.27	2.03	2.32	3.02
Efficiency Ratios
Asset Turnover	0.34	0.34	0.39	0.42	0.46	0.48
Inventory Turnover	573.97	1056.52	1632.45	1029.79	1040.00	902.32
Yield & Distribution Ratios
Earnings Yield	5.82%	5.18%	4.87%	4.02%	4.11%	1.97%
FCF Yield	5.23%	7.76%	7.10%	8.08%	6.90%	2.27%
Dividend Yield	1.41%	1.65%	1.59%	-	-	-
Payout Ratio	17.92%	22.70%	-	-	-	-
Buyback Yield	0.71%	1.18%	2.04%	3.82%	-0.08%	-0.38%
Total Return	2.11%	2.83%	3.64%	3.82%	-0.08%	-0.38%

Source: Company financial statements from annual and quarterly filings. Data as of Jun 30, 2026. Data sources and methodology

Frequently Asked Questions About Tencent Music Entertainment Group Financial Ratios

What is Tencent Music Entertainment Group's P/E ratio?

Tencent Music Entertainment Group's P/E ratio was 17.18 for fiscal 2025 (period ended Dec 31, 2025). It was 19.31 a year earlier.

What is Tencent Music Entertainment Group's return on equity?

Tencent Music Entertainment Group's return on equity (ROE) was 14.9% for fiscal 2025 (period ended Dec 31, 2025). It was 11.2% a year earlier.

What is Tencent Music Entertainment Group's debt-to-equity ratio?

Tencent Music Entertainment Group's debt-to-equity ratio was 0.05 for fiscal 2025 (period ended Dec 31, 2025). It was 0.09 a year earlier.

What is return on equity (ROE)?

Return on equity is net income divided by shareholders' equity. It measures how much profit a company generates from the capital its shareholders have invested. Full definition