Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 553,681 - -
Change - -24.73% 27.01% 3.27% 48.28% -9.37% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 375,338 347,271 319,181
Change - -28.15% 17.89% 0.37% 60.55% -21.4% -7.48% -8.09%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.9x 12.6x 11.4x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.98x 2.62x 2.33x
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 4.58x 4.24x 3.95x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.1x 2.66x 2.28x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.06x 6.95x 5.84x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.56x 7.3x 6.12x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.26x 7.65x 5.76x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.1% 13.1% 17.4%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.18 5.131 5.903
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.42% 2.97% 3.42%
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% 33.7% 37.5% 39%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,899 130,458 140,259
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,543 49,974 54,672
EBIT 1 16,417 19,629 27,709 29,584 35,835 43,834 47,563 52,141
Net income 1 16,857 20,338 29,417 29,698 33,760 39,505 43,266 47,126
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -178,342 -206,410 -234,500
Reference price 2 128.31 101.28 127.62 130.05 192.85 172.83 172.83 172.83
Nbr of stocks (in thousands) 3,252,359 3,101,359 3,125,972 3,167,959 3,167,959 3,203,577 - -
Announcement Date 2/24/22 2/23/23 2/29/24 2/20/25 2/11/26 - - -
1CNY in Million2CNY
Estimates

P/E, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
15.02x1.8x6.18x2.81% 10.46B
12.9x2.2x10.14x6.3% 5.95B
8.87x1.49x4.35x1.1% 5.83B
28.55x2.06x10.1x1.74% 5.23B
13.12x3.11x7.77x5.81% 3.7B
13.38x2.17x9.23x7.46% 3.36B
14.09x4.44x10.8x3.74% 3.12B
10.6x1.21x5.36x0.56% 3.01B
9.99x1.88x5.73x0.9% 2.65B
Average 14.06x 2.26x 7.74x 3.38% 4.81B
Weighted average by Cap. 14.56x 2.14x 7.57x 3.34%

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