Tencent Music Entertainment Group

LSE:0A2Z Stock Report

Market Cap: US$18.7b

Tencent Music Entertainment Group Valuation

Is 0A2Z undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0A2Z when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A2Z ($9) is trading below our estimate of fair value ($17.41)

Significantly Below Fair Value: 0A2Z is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A2Z?

Key metric: As 0A2Z is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0A2Z. This is calculated by dividing 0A2Z's market cap by their current earnings.
What is 0A2Z's PE Ratio?
PE Ratio22.7x
EarningsCN¥5.99b
Market CapCN¥136.16b

Price to Earnings Ratio vs Peers

How does 0A2Z's PE Ratio compare to its peers?

The above table shows the PE ratio for 0A2Z vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.2x
LBG LBG Media
39x24.5%UK£278.1m
WPP WPP
43.9x20.4%UK£8.9b
CCP Celtic
11.9x-60.8%UK£158.9m
INF Informa
33.9x21.5%UK£10.6b
0A2Z Tencent Music Entertainment Group
22.7x15.2%US$18.7b

Price-To-Earnings vs Peers: 0A2Z is good value based on its Price-To-Earnings Ratio (22.7x) compared to the peer average (32.2x).

Price to Earnings Ratio vs Industry

How does 0A2Z's PE Ratio compare vs other companies in the European Entertainment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0A2Z 22.7xIndustry Avg. 12.3xNo. of Companies12PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0A2Z is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the European Entertainment industry average (12.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0A2Z's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0A2Z PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.7x
Fair PE Ratio30.2x

Price-To-Earnings vs Fair Ratio: 0A2Z is good value based on its Price-To-Earnings Ratio (22.7x) compared to the estimated Fair Price-To-Earnings Ratio (30.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0A2Z forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$9.00
US$14.49
+61.0%
9.0%US$17.04US$11.91n/a28
Dec ’25US$9.00
US$14.55
+61.7%
8.8%US$17.15US$11.98n/a29
Nov ’25US$9.00
US$14.60
+62.2%
13.0%US$17.23US$7.61n/a27
Oct ’25US$9.00
US$14.70
+63.3%
14.4%US$17.52US$7.71n/a27
Sep ’25US$9.00
US$14.70
+63.3%
13.0%US$17.19US$7.56n/a27
Aug ’25US$9.00
US$16.32
+81.3%
13.7%US$18.99US$8.88n/a29
Jul ’25US$9.00
US$16.32
+81.3%
13.7%US$18.91US$8.89n/a29
Jun ’25US$9.00
US$16.30
+81.1%
13.8%US$18.97US$8.92n/a29
May ’25US$9.00
US$12.92
+43.6%
12.3%US$17.75US$8.92n/a30
Apr ’25US$9.00
US$12.39
+37.7%
16.1%US$17.80US$6.13n/a30
Mar ’25US$9.00
US$10.07
+11.9%
12.2%US$12.99US$7.95n/a29
Feb ’25US$9.00
US$9.86
+9.5%
10.4%US$12.62US$7.97n/a26
Jan ’25US$9.00
US$9.25
+2.8%
12.2%US$12.69US$7.24n/a25
Dec ’24US$9.00
US$9.22
+2.4%
12.1%US$12.72US$7.33US$9.0025
Nov ’24US$9.00
US$8.60
-4.5%
15.2%US$12.47US$6.59US$9.0025
Oct ’24US$9.00
US$8.52
-5.3%
15.2%US$12.50US$6.60US$9.0024
Sep ’24US$9.00
US$8.54
-5.1%
14.6%US$11.68US$6.63US$9.0025
Aug ’24US$9.00
US$9.41
+4.5%
14.1%US$11.86US$6.93US$9.0025
Jul ’24US$9.00
US$9.90
+10.0%
12.1%US$11.75US$7.42US$9.0025
Jun ’24US$9.00
US$10.08
+12.0%
12.2%US$11.98US$7.36US$9.0025
May ’24US$9.00
US$9.53
+5.9%
16.6%US$12.25US$5.07US$9.0025
Apr ’24US$9.00
US$9.42
+4.7%
18.4%US$12.35US$5.11US$9.0025
Mar ’24US$9.00
US$9.07
+0.8%
20.9%US$12.21US$4.59US$9.0025
Feb ’24US$9.00
US$8.97
-0.3%
22.7%US$12.58US$4.73US$9.0025
Jan ’24US$9.00
US$7.16
-20.4%
22.0%US$10.30US$4.58US$9.0023
Dec ’23US$9.00
US$6.71
-25.5%
19.5%US$9.05US$4.53US$9.0022

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 20:24
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Tencent Music Entertainment Group is covered by 57 analysts. 29 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Jiong ShaoBarclays
Yanfang JiangBenchmark Company