Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 529,565 - -
Change - -24.73% 27.01% 3.27% 48.28% -13.32% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 353,004 327,450 302,054
Change - -28.15% 17.89% 0.37% 60.55% -26.07% -7.24% -7.76%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.4x 12.2x 11x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.85x 2.51x 2.23x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.2x 1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.38x 4.07x 3.78x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.92x 2.51x 2.15x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.58x 6.57x 5.52x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.09x 6.91x 5.81x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 7.77x 7.21x 5.45x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.9% 13.9% 18.3%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.357 5.456 6.201
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.63% 3.3% 3.75%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.32 13.57 14.99
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 35.4% 40.2% 41.4%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,854 130,212 140,247
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,576 49,870 54,678
EBIT 1 16,417 19,629 27,709 29,584 35,835 43,657 47,402 52,032
Net income 1 16,857 20,338 29,417 29,698 33,760 39,363 43,118 46,960
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -176,561 -202,115 -227,510
Reference price 2 128.31 101.28 127.62 130.05 192.85 165.42 165.42 165.42
Nbr of stocks (in thousands) 3,252,359 3,101,359 3,125,972 3,167,959 3,167,959 3,201,251 - -
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.($)
14.15x3.16x8.19x2.5% 82.74B
17.73x2.33x8.26x2.43% 12.16B
12.91x1.62x4.8x0.92% 7.57B
25.73x2.43x11.29x1.73% 6.5B
13.75x2.36x10.85x5.92% 6.39B
14.31x3.49x8.74x5.3% 4.11B
11.45x1.25x5.42x0.51% 3.51B
15.05x5.1x12.08x3.34% 3.45B
14.86x2.32x11.09x5.82% 3.43B
Average 15.55x 2.67x 8.97x 3.16% 14.43B
Weighted average by Cap. 14.95x 2.90x 8.41x 2.68%

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