Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 545,649 - -
Change - -24.73% 27.01% 3.27% 48.28% -10.68% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 368,873 341,129 313,478
Change - -28.15% 17.89% 0.37% 60.55% -22.75% -7.52% -8.11%
P/E Ratio 25.6x 16.4x 14.1x 14.2x 18.4x 13.8x 12.5x 11.3x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.94x 2.58x 2.31x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.2x 1.1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.51x 4.18x 3.89x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.05x 2.61x 2.23x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.93x 6.83x 5.73x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.42x 7.21x 6.01x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.12x 7.51x 5.66x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.3% 13.3% 17.7%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.11 4.917 5.881
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.4% 2.88% 3.44%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.41 13.69 15.15
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 33.1% 35.9% 38.8%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,934 130,498 140,259
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,543 49,975 54,673
EBIT 1 16,417 19,629 27,709 29,584 35,835 43,834 47,339 52,141
Net income 1 16,857 20,338 29,417 29,698 33,760 39,466 43,182 47,126
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -176,776 -204,520 -232,171
Reference price 2 128.31 101.28 127.62 130.05 192.85 171.02 171.02 171.02
Nbr of stocks (in thousands) 3,252,359 3,101,359 3,125,972 3,167,959 3,167,959 3,190,641 - -
Announcement Date 2/24/22 2/23/23 2/29/24 2/20/25 2/11/26 - - -
1CNY in Million2CNY
Estimates

P/E Ratio, Detailed evolution

P/E (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
15.24x1.9x6.31x2.67% 10.83B
10x1.76x5.13x0.96% 6.68B
12.34x2.09x9.66x6.59% 5.72B
29.89x2.19x10.76x1.66% 5.52B
15.44x2.55x10.83x6.52% 3.87B
12.24x2.85x7.12x6.23% 3.47B
11.72x1.38x6.23x0.5% 3.29B
12.31x5.01x12.44x3.92% 3.08B
11.6x2.31x7.06x0.77% 3.08B
Average 14.53x 2.45x 8.39x 3.31% 5.06B
Weighted average by Cap. 14.97x 2.27x 8.00x 3.19%

Y-o-Y evolution of P/E

Historical PBR trend

Evolution Enterprise Value / Sales

Change in Enterprise Value/EBITDA

Year-on-year evolution of the Yield

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