Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 572,961 - -
Change - -24.73% 27.01% 3.27% 48.28% -6.21% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 394,619 366,551 338,461
Change - -28.15% 17.89% 0.37% 60.55% -17.36% -7.11% -7.66%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 14.3x 13x 11.8x
PBR 4.48x 3.16x 3.3x 3x 3.83x 3.09x 2.71x 2.41x
PEG - 0.7x 0.3x 9.18x 1.3x 0.7x 1.3x 1.18x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.73x 4.39x 4.07x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.26x 2.81x 2.41x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.48x 7.33x 6.19x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 9x 7.71x 6.49x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.69x 8.07x 6.11x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 11.5% 12.4% 16.4%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.4 5.249 5.903
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.46% 2.93% 3.3%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.48 13.77 15.15
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 35.3% 38.1% 39%
Net sales 1 87,606 96,496 103,468 105,295 112,626 121,016 130,605 140,650
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 39,573 43,287 46,980
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -178,342 -206,410 -234,500
Reference price 2 128.31 101.28 127.62 130.05 192.85 178.85 178.85 178.85
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 (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
14.33x3.26x8.48x2.46% 84.5B
16.14x1.99x6.9x2.63% 11.08B
10.53x1.81x5.23x0.95% 6.95B
13.44x2.3x10.59x6.05% 6.22B
25.11x2.15x10.77x1.81% 5.74B
13.46x3.21x8.01x5.66% 3.81B
14.98x4.87x11.92x3.52% 3.3B
13.19x2.13x9.07x7.57% 3.33B
11.21x1.24x5.65x0.53% 3.21B
10.48x2.04x6.23x0.86% 2.78B
Average 14.29x 2.50x 8.29x 3.2% 13.09B
Weighted average by Cap. 14.52x 2.92x 8.34x 2.71%

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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