Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 530,963 - -
Change - -24.73% 27.01% 3.27% 48.28% -13.09% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 354,402 328,848 303,453
Change - -28.15% 17.89% 0.37% 60.55% -25.78% -7.21% -7.72%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.5x 12.2x 11.1x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.86x 2.51x 2.24x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.1x 1.1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.25x 4.08x 3.79x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.84x 2.52x 2.16x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.57x 6.55x 5.55x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 7.32x 6.91x 5.83x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 7.8x 7.24x 5.48x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.8% 13.8% 18.3%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 3.573 5.476 6.201
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.15% 3.3% 3.74%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.26 13.62 14.99
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 29.1% 40.2% 41.4%
Net sales 1 87,606 96,496 103,468 105,295 112,626 124,871 130,259 140,247
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,812 50,187 54,678
EBIT 1 16,417 19,629 27,709 29,584 35,835 48,447 47,574 52,032
Net income 1 16,857 20,338 29,417 29,698 33,760 39,288 43,170 46,960
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -176,561 -202,115 -227,510
Reference price 2 128.31 101.28 127.62 130.05 192.85 165.86 165.86 165.86
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.($)
13.54x2.96x7.68x2.61% 79.37B
20.08x3.54x12.83x15.64% 14.81B
10.85x1.42x4.16x1.02% 6.99B
25.57x2.43x11.43x1.74% 6.57B
13.02x2.22x10.23x6.25% 6.06B
14.26x3.32x8.81x5.19% 4.1B
15.17x5.15x12.21x3.31% 3.5B
14.11x2.18x10.42x6.13% 3.26B
9.89x1x4.59x1.34% 3.06B
Average 15.17x 2.69x 9.15x 4.81% 14.19B
Weighted average by Cap. 14.74x 2.88x 8.56x 4.32%

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