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Tencent Music Entertainment Group (NYSE:TME) stock has moved sharply in recent periods, with a 4.6% gain over the past day contrasting with declines over the past week, month, and past 3 months.
See our latest analysis for Tencent Music Entertainment Group.
The sharp 4.6% one-day share price gain follows a period of weaker momentum, with 30-day and 90-day share price returns showing declines of 9.22% and 16.27%. However, the 1-year total shareholder return stands at 17.88%, and the 3-year total shareholder return is more than double.
If this kind of rebound after a pullback has your attention, it may be a good moment to see what else is moving in music and media, starting with 23 top founder-led companies.
With Tencent Music Entertainment Group trading at $15.85 and metrics such as its value score of 6 and quoted intrinsic discount of around 31%, the key question is whether this is a genuine opening or whether the market is already factoring in future growth.
With Tencent Music Entertainment Group closing at $15.85 against a widely followed fair value estimate of about $26.84, the gap between price and narrative valuation is sizeable and naturally raises questions about what is built into those models.
Proprietary content development, exclusive partnerships (with Korean labels and Chinese artists), and investments in original artist incubation strengthen content differentiation, support premium pricing, and reduce long term content costs, contributing to higher gross margins and defensible market share.
Read the complete narrative. Read the complete narrative.
Want to see what sits behind that fair value gap? The narrative leans heavily on sustained revenue momentum, firm margins, and a future earnings multiple that assumes Tencent Music keeps turning user attention into cash. Curious which specific growth and profitability assumptions pull the model up to the mid $20s and beyond? The full write up lays those expectations out in black and white.
Result: Fair Value of $26.84 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that fair value gap can quickly narrow if lower margin offline events weigh on profitability, or if tighter regulation slows new initiatives and earnings progress.
Find out about the key risks to this Tencent Music Entertainment Group narrative.
If you read this and feel the assumptions do not quite match your view, or you would like to test the numbers yourself, you can build a custom Tencent Music story in just a few minutes by starting with Do it your way.