TME Stock Analysis: Buy, Sell, or Hold?
TME - Tencent Music Entertainment Group American Depositary Shares, each representing two Class A Ordinary Shares
$8.55
0.11 (1.30%)
▲
5d:
-1.16%
30d:
+4.01%
90d:
-3.5%
WAIT
LOW Confidence
Analysis Updated: Oct 22, 2026 12:00 AM ET
Earnings: Nov 17, 2026
25d
Get Alerted When TME Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
📊 MIXED SIGNALS: TME shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: TME shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$13.51
Based on 5.9% avg growth
INTRINSIC VALUE TODAY
$8.39
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 1.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: TME is currently trading at $8.55, which is considered extended relative to its 30-day fair value range of $7.89 to $8.50. From a valuation perspective, the stock is trading at a discount (Forward PE: 1.2) compared to its historical average (1.5). Remarkably, the market is currently pricing in an annual earnings decline of 5.9% over the next few years. This pessimistic expectation contrasts with the company's recent 2.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, TME is in a strong uptrend. The price is approaching resistance at $8.79. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: TME scores 13/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $12.67 (+50.1%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, TME is in a strong uptrend. The price is approaching resistance at $8.79. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: TME scores 13/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $12.67 (+50.1%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$7.89 -
$8.50
Company Quality Score
44/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
28.6%
All Signals
- BEARISH: Price extended above range
- BEARISH: Weak technical setup (13/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 50.1% below Wall St target ($12.67)
- WARNING: Composite score 44/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$7.89 -
$8.50
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$7.86
Resistance Level
$8.79
Current Trend
Strong Uptrend
Technical data as of
Oct 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
1.25
Wall Street Target
$12.67
(+50.1%)
Revenue Growth (YoY)
5.8%
Earnings Growth (YoY)
2.4%
Profit Margin
26.3%
Valuation Discount vs History
-5.9% cheaper
PE vs Historical
1.3 vs 1.5
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.9%
(market-implied from PE analysis)
1-Year Target
$7.94
(-6%)
2-Year Target
$7.47
(-12%)
3-Year Target
$7.03
(-17%)
3-Yr Target (if PE normalizes)
(PE: 1→2)
$8.44
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 7.9%)
$168.48
(+1896%)
Base:
(SPY PE: 1.3, Growth: 7.9%)
$10.61
(+26%)
Bear:
(PE: 1.1, Growth: 7.9%)
$9.02
(+7%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (11x PE), but valuation improves significantly next year (1x PE) as earnings recover.
Trailing PE: 10.58 | Current EPS (TTM): $0.81
Bull Case
$18.85
(+123%)
Analyst growth 100.0%, PE expands to 11.6
Base Case
$17.14
(+103%)
Market implied 100.0%, PE stable at 10.6
Bear Case
$5.83
(-31%)
Severe decline -20.0%, PE contracts to 9.0
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 1.3 to 1.5
Stabilization Target:
$10.13
(+20.0%)
PE Expansion Potential:
+20.0%
Share & Embed Analysis
Last updated: October 22, 2026 12:46 PM ET
Data refreshes hourly during market hours. Next update: 1:46 PM
Data refreshes hourly during market hours. Next update: 1:46 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is TME showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
Top Rated Internet Content & Information Stocks
Top-rated stocks in Internet Content & Information by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
META
Meta Platforms Inc. |
STRONG BUY
63 analysts |
$815 | 56 HOLD |
|
BILI
Bilibili Inc |
STRONG BUY
30 analysts |
$26 | 41 HOLD |
|
GOOGL
Alphabet Inc Class A |
STRONG BUY
62 analysts |
$431 | 45 HOLD |
|
GOOG
Alphabet Inc Class C |
STRONG BUY
62 analysts |
$421 | 43 HOLD |
|
BIDU
Baidu Inc |
STRONG BUY
31 analysts |
$145 | 48 HOLD |
