Featured Tickers:

HUYA

SOHU

TME

Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Entertainment industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Entertainment Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Entertainment Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Entertainment industry for Wednesday, February 11, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Entertainment industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
HUYA Inc.	HUYA	0.18	na	na	30.5%	1.57	na	A
Sohu.com Limited	SOHU	0.88	3.3	30.5	16.8%	0.43	na	A
Tencent Music Entertainment Group	TME	0.81	17.3	10.8	(0.1%)	2.23	3.0	B

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

HUYA Inc.’s Value Grade

Value Grade:

Metric	Score	HUYA	Industry Median
Price/Sales	8	0.18	0.94
Price/Earnings	na	na	41.9
EV/EBITDA	na	na	15.9
Shareholder Yield	1	30.5%	(1.3%)
Price/Book Value	42	1.57	1.69
Price/Free Cash Flow	na	na	23.5

HUYA Inc., through its subsidiaries, operates game live streaming platforms in the People’s Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company also offers non-game entertainment content, such as talent shows, anime, outdoor activities, live chats, and online theater. In addition, it operates Nimo TV, a game live streaming platform; and promotes and distributes game applications in international markets. Further, the company provides online advertising, software development, internet value added, and cultural and creative services. It serves broadcasters and talent agencies. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. operates as a subsidiary of Tencent Holdings Limited.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

HUYA Inc. has a Value Score of 97, which is considered to be undervalued.

When you look at HUYA Inc.’s price-to-sales ratio at 0.18 compared to the industry median at 0.94, this company has a lower price relative to revenue compared to its peers. This could make HUYA Inc.’s stock more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. HUYA Inc.’s shareholder yield is higher than its industry median ratio of (1.30%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. HUYA Inc.’s price-to-book ratio is lower than its industry median ratio of 1.69. This could make HUYA Inc. more attractive to investors looking for a new addition to their portfolio.

Sohu.com Limited’s Value Grade

Value Grade:

Metric	Score	SOHU	Industry Median
Price/Sales	29	0.88	0.94
Price/Earnings	2	3.3	41.9
EV/EBITDA	86	30.5	15.9
Shareholder Yield	1	16.8%	(1.3%)
Price/Book Value	7	0.43	1.69
Price/Free Cash Flow	na	na	23.5

Sohu.com Limited operates as an online media platform and gaming company that provides online products and services on PCs and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online media content and content distribution through Internet-enabled devices, such as mobile phones, tablets, and PCs through the mobile phone applications Sohu News App and Sohu Video App, the mobile portal m.sohu.com, and the PC portal www.sohu.com. It also offers online advertising services through its 17173.com website; paid subscription services; livestreaming content; interactive broadcasting services; and revenue sharing from other platforms. In addition, the company provides online games that include PC games and mobile games. Sohu.com Limited was incorporated in 1996 and is headquartered in Beijing, China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Sohu.com Limited has a Value Score of 90, which is considered to be undervalued.

Sohu.com Limited’s price-earnings ratio is 3.3 compared to the industry median at 41.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Sohu.com Limited more attractive for value investors.

Sohu.com Limited’s price-to-book ratio is higher than its peers. This could make Sohu.com Limited less attractive for value investors when compared to the industry median at 1.69.

You can read more about Sohu.com Limited’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Tencent Music Entertainment Group’s Value Grade

Value Grade:

Metric	Score	TME	Industry Median
Price/Sales	27	0.81	0.94
Price/Earnings	40	17.3	41.9
EV/EBITDA	40	10.8	15.9
Shareholder Yield	49	(0.1%)	(1.3%)
Price/Book Value	54	2.23	1.69
Price/Free Cash Flow	6	3.0	23.5

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 offers 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 artist-related merchandise, such as branded apparel, posters and art prints, and accessories; other music services, such as content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts, and artist management services; and music subscriptions, as well as offers advertising services across its social entertainment platforms. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Tencent Music Entertainment Group has a Value Score of 73, which is considered to be undervalued.

Tencent Music Entertainment Group’s price-earnings ratio is 17.3 compared to the industry median at 41.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Tencent Music Entertainment Group more attractive for value investors.

Tencent Music Entertainment Group’s price-to-book ratio is lower than its peers. This could make Tencent Music Entertainment Group more attractive for value investors when compared to the industry median at 1.69.

You can read more about Tencent Music Entertainment Group’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Entertainment Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Entertainment stocks as well as other industrys.

Choosing Which of the 3 Best Entertainment Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

HUYA Inc. stock has a Value Grade of A.
Sohu.com Limited stock has a Value Grade of A.
Tencent Music Entertainment Group stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Entertainment industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Entertainment Stocks

Want to learn more about Entertainment stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.