Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 532,667 - -
Change - -24.73% 27.01% 3.27% 48.28% -12.81% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 356,106 330,553 305,157
Change - -28.15% 17.89% 0.37% 60.55% -25.42% -7.18% -7.68%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.5x 12.3x 11.1x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.87x 2.52x 2.24x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.2x 1.1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.41x 4.09x 3.8x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.95x 2.54x 2.18x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.65x 6.63x 5.58x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.16x 6.97x 5.86x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 7.84x 7.28x 5.51x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.8% 13.7% 18.2%
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% 2.62% 3.28% 3.73%
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 2 128.31 101.28 127.62 130.05 192.85 166.39 166.39 166.39
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 (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
13.5x2.95x7.65x2.62% 78.98B
20.18x3.4x12.35x7.19% 14.9B
12.6x1.56x4.64x0.95% 7.38B
26.1x2.48x11.61x1.69% 6.64B
13.89x2.38x10.97x5.86% 6.46B
14.65x3.52x8.99x4.78% 4.15B
15.23x5.18x12.26x3.3% 3.5B
14.85x2.32x11.08x5.83% 3.43B
11.15x1.2x5.4x0.98% 3.4B
Average 15.79x 2.78x 9.44x 3.69% 14.31B
Weighted average by Cap. 14.95x 2.88x 8.59x 3.3%

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