NTES

NetEase, Inc.

Fundamental data last updated:November 6, 2026

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company profile

SECTOR

Technology

industry

Electronic Gaming & Multimedia

Exchange

NASDAQ

County of HQ

China

Next Earnings Date

11/19/2026

Business Summary

NetEase's business model revolves around creating immersive gaming experiences and digital content that captivate users. By leveraging its deep understanding of consumer preferences, it builds loyalty and recurring revenue streams. Its competitive moat lies in its ability to innovate and adapt, ensuring a steady flow of engaging content. This strategic positioning helps lock in customers and generate consistent cash flow.

 


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VALUATION

P/E

14.43

Market Cap ($M USD)

$71.62B

Forward P/E

1.82

PEG

14.80

PRICE TO SALES

4.02

PRICE TO BOOK

2.81

EV / EBITDA

10.01

5-Year Average P/E

Free Cash Flow Yield

10.75%

DCF Value

$216.08

Graham Number

$109.09

Price to FCF

9.30

EV to FCF

9.01

Earnings Yield

6.93%

FCF Yield

10.75%

DIVIDEND

Yield

2.67%

Annual Payout

$19.51

Payout Ratio

41.70%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$50.71

Next Year EPS Growth Estimate

$61.67

Next Year Revenue Growth Estimate

$121.34B

Return on Equity (ROE)

20.04%

FREE CASH FLOW

Operating Margin

35.22%

Debt-to-Equity

0.08

Piotroski F-Score

6

Altman Z-Score

7.49

Return on Invested Capital (ROIC)

17.67%

Current Ratio

3.45

Quick Ratio

3.44

Net Debt to EBITDA

-0.32

Interest Coverage

0.00

Gross Profit margin

67.15%

FCF PER SHARE

$78.64

REVENUE PER SHARE

$181.82

Analyze NTES on TradingView

Gainseekers Quantitative Analysis

Summary

The market seems to be undervaluing NetEase, Inc. significantly. With a DCF value nearly double the snapshot price, there’s a glaring disconnect between intrinsic value and market perception. The Forward P/E of 1.82 suggests the market expects explosive growth, yet the PEG Forward ratio of 14.80 indicates potential overvaluation relative to growth expectations. However, the Altman Z-score of 7.49 signals robust financial health, suggesting low bankruptcy risk. This stock appears to be a hidden gem, mispriced by the market’s current sentiment.

AI Exposure / Tech Reliance

Operating in the Electronic Gaming & Multimedia industry, NetEase is well-positioned to leverage AI advancements. Its tech-centric focus allows it to integrate AI into gaming experiences, enhancing user engagement. This adaptability ensures resilience in the rapidly evolving tech landscape.

The Bull Case

For value and GARP investors, NetEase presents a compelling opportunity. With an ROIC of 17.67% and a solid FCF Yield of 10.75%, the company demonstrates exceptional capital efficiency. The Piotroski F-Score of 6 indicates decent financial strength, while an operating margin of 35.22% underscores its pricing power. These metrics paint a picture of a company that knows how to generate and reinvest cash effectively, making it an attractive buy.

The Bear Case

Despite its strengths, NetEase is not without risks. The PEG Forward ratio of 14.80 raises concerns about its valuation relative to growth, suggesting the market may be overly optimistic. Additionally, the Price/Sales ratio of 4.02 and Price/Book of 2.81 indicate a premium valuation, which could deter cautious investors. The stock's distance from its 52-week high suggests potential technical overextension, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$168.00

Institutional Ownership %

1-Year Beta

0.77

Insider Buying % (6 Mo)

Distance to 52-Week High

32.60%

Distance to 52-Week Low

5.68%

EARNINGS SURPRISE %

-23.71%

50-DAY SMA

$120.43

200-DAY SMA

$121.36

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.