Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 569,909 - -
Change - -24.73% 27.01% 3.27% 48.28% -6.71% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 391,567 363,499 335,409
Change - -28.15% 17.89% 0.37% 60.55% -18% -7.17% -7.73%
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 2.99x 2.62x 2.34x
PEG - 0.7x 0.3x 9.18x 1.3x 0.7x 1.2x 1.14x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.71x 4.37x 4.06x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.24x 2.79x 2.39x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.41x 7.27x 6.13x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.93x 7.64x 6.43x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.62x 8x 6.06x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 11.6% 12.5% 16.5%
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% 2.54% 3.03% 3.41%
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 96,496 103,468 105,295 112,626 120,899 130,458 140,259
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 39,621 43,393 47,126
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -178,342 -206,410 -234,500
Reference price 2 128.31 101.28 127.62 130.05 192.85 173.22 173.22 173.22
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.($)
15.69x1.95x6.7x2.69% 10.99B
10.64x1.87x5.43x0.92% 6.96B
13.71x2.35x10.82x5.93% 6.34B
24.47x2.07x10.37x1.86% 5.59B
13.64x3.26x8.15x5.59% 3.86B
14.29x2.35x9.99x6.99% 3.6B
11.92x1.37x6.19x0.51% 3.34B
14.57x4.63x11.26x3.62% 3.24B
10.46x2x6.12x0.86% 2.77B
Average 14.38x 2.43x 8.34x 3.22% 5.19B
Weighted average by Cap. 14.79x 2.29x 8.13x 3.14%

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