×
News Home

Should You Buy Tencent Music Entertainment Group - ADR (TME) Stock Friday?

Friday, July 01, 2022 10:39 AM | InvestorsObserver Analysts
Should You Buy Tencent Music Entertainment Group - ADR (TME) Stock Friday?

Tencent Music Entertainment Group - ADR (TME) receives a strong valuation score of 63 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. TME holds a better value than 63% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 63
TME gets a 63 Valuation Rank today. Find out what this means to you and get the rest of the rankings on TME!

Metrics Analysis

TME's trailing-12-month Price to Earnings (PE) ratio of 35.6 puts it above the historical average of roughly 15. TME is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. TME's trailing-12-month earnings per share (EPS) of 0.34 does not justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
TME currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.63. The market is currently overvaluing TME in relation to its projected growth due to the PEG ratio being above the fair market value of 1. TME's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

TME's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. TME's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Tencent Music Entertainment Group - ADR (TME) stock.

You May Also Like

Get the InvestorsObserver App

InvestorsObserver App
iOS App Android App