Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 573,024 - -
Change - -24.73% 27.01% 3.27% 48.28% -6.2% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 396,056 370,216 344,588
Change - -28.15% 17.89% 0.37% 60.55% -17.06% -6.52% -6.92%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 14.5x 13.2x 11.9x
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 0.8x 1.3x 1.1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.74x 4.4x 4.08x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.28x 2.84x 2.45x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.5x 7.42x 6.3x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 9.07x 7.81x 6.62x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.72x 8.15x 6.22x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 11.5% 12.3% 16.1%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.379 5.489 6.251
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.45% 3.07% 3.49%
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% 35.5% 40.5% 41.7%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,907 130,347 140,459
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 -176,969 -202,809 -228,437
Reference price 2 128.31 101.28 127.62 130.05 192.85 179.00 179.00 179.00
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 A 2/23/23 A 2/29/24 A 2/20/25 A 2/11/26 A - - -
1CNY in Million2CNY
Estimates

P/E, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
17.81x2.38x8.43x2.4% 12.31B
12.86x1.61x4.77x0.93% 7.41B
13.95x2.39x11.03x5.83% 6.48B
27.13x2.38x11.92x1.68% 6.26B
14.55x3.53x8.81x5.24% 4.14B
14.71x4.96x11.76x3.42% 3.37B
13.67x2.08x9.71x6.41% 3.22B
10.73x1.11x5.09x0.55% 3.16B
10.86x2.14x6.55x0.83% 2.9B
Average 15.14x 2.51x 8.67x 3.03% 5.47B
Weighted average by Cap. 16.12x 2.42x 8.68x 2.9%

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