Tencent Music Entertainment Group (1698) Fair Value & Analysis
Communication Services · HK · Market cap HK$112B
Fair value as of: Jul 5, 2026
From 26 valuation models · updated today
Fair value updated Jul 5, 2026 — revised from HK$131.29 to HK$65.78 (−49.9%) since Jul 2, 2026. Share price −5.6% over the past month.
Price vs Fair Value (12 months)
12‑month range HK$31.46 – HK$100.30 · fair‑value band HK$47.84 – HK$88.84 · the HK$34.74 price screens below the HK$65.78 fair value. As of Jul 5, 2026.
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Tencent Music Entertainment Group (1698) currently trades at HK$34.74, while our model-based Fair Value estimate is HK$65.78 — implying the stock looks roughly 89.3% undervalued today. We read business quality at 57/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.
Over the trailing twelve months, Tencent Music Entertainment Group generated revenue of HK$33.4B at a net margin of 26.5%. Revenue grew 7.3% year over year. It earns a return on equity of 12.0%. The balance sheet holds a net cash position of HK$4.7B. Fundamentals as of Jul 5, 2026
Our scenario range runs from HK$47.84 (bear case) to HK$88.84 (bull case); at HK$34.74, the current price sits below that range. The share trades about 66% below its 52-week high and 11% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -22% fair-value upside — at 89%, 1698 screens cheaper than that median.
Key figures & financial health
More key figures
Figures from reported company fundamentals (EODHD) · as of Jul 5, 2026. TTM = trailing twelve months.
About the company
Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It provides QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and share music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with audience base; and Lazy Audio, an audio platform. In addition, it sells …
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Tencent Music Entertainment Group reported revenue of HK$32.1B in FY2025 versus HK$31.2B in FY2021, a compound +0.6%/yr. Reported net income was HK$10.8B in FY2025, compounding +37.3%/yr from FY2021.
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Recent news
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External third-party headlines (Yahoo Finance, Reuters and others) — not an editorial selection, not financial advice.
Similar stocks
10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Jul 5, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alphabet Inc ABEC | €325.65 | €302.87 | -7% |
| Meta Platforms, Inc META | $593.00 | $594.17 | +0% |
| Tencent Holdings TCEHY | $53.62 | $41.75 | -22% |
| Spotify Technology S.A 639 | €440.00 | €162.03 | -63% |
| Recruit Holdings RCRUY | $14.11 | $9.86 | -30% |
| Baidu, Inc 9888 | HK$108.70 | HK$81.21 | -25% |
| Reddit, Inc RDDT | $173.45 | $126.90 | -27% |
| NAVER Corporation 035420 | 255,500 KRW | 281,785 KRW | +10% |
| Kuaishou Technology, an investment holding company, KUASF | $6.13 | $13.39 | +118% |
| REA Group RPGRF | $124.45 | $58.85 | -53% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.
Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.