East Tencent Music Entertainment Group
Tencent Music Entertainment Group – ADR (TME) receives a solid 72 rating from InvestorsObserver analysis. Our proprietary rating system takes into account the overall health of the company by looking at stock price, earnings and growth rate to determine if it represents good value. TME holds a better value than 72% of the stock at its current price. Investors who focus on long-term growth through long-term investments will find the valuation ranking particularly relevant when allocating their assets.
TME has a year-over-year price-to-earnings (PE) ratio of 17.6. The historical average of around 15 indicates an average value for TME shares, as investors pay fair prices relative to the company’s earnings. TME’s average PE ratio shows that the company has been trading around fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.34 justifies the current share price. However, rolling PE ratios do not take into account the company’s projected growth rate, resulting in many new companies having high PE ratios due to high growth potential that attracts investors despite insufficient earnings. . TME’s 12-month PE-to-Growth (PEG) ratio of 1.48 is considered a poor value as the market overvalues TME relative to the company’s expected earnings growth. TME’s PEG is derived from its forward price-to-earnings ratio divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and stock price. Due to their incorporation of more fundamentals of a company’s overall health and their focus on the future rather than the past, PEG ratios are one of the most widely used valuation measures by analysts today. today.
TME’s valuation metrics are low at its current price due to an overvalued PEG ratio despite strong growth. TME’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full Tencent Music Entertainment Group – ADR (TME) stock report.
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