Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 4,17,313 3,14,113 3,98,949 4,12,006 6,10,925 5,52,210 - -
Change - -24.73% 27.01% 3.27% 48.28% -9.61% - -
Enterprise Value (EV) 1 3,49,811 2,51,355 2,96,333 2,97,415 4,77,502 3,75,434 3,47,690 3,20,039
Change - -28.15% 17.89% 0.37% 60.55% -21.38% -7.39% -7.95%
P/E Ratio 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 2.96x 2.6x 2.33x
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 4.57x 4.23x 3.94x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.1x 2.66x 2.28x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.07x 6.96x 5.85x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.56x 7.34x 6.14x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.27x 7.66x 5.78x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.1% 13.1% 17.3%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.11 4.917 5.881
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.38% 2.85% 3.41%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.41 13.69 15.15
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 33.1% 35.9% 38.8%
Net sales 1 87,606 96,496 1,03,468 1,05,295 1,12,626 1,20,934 1,30,498 1,40,259
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,543 49,975 54,673
EBIT 1 16,417 19,629 27,709 29,584 35,835 43,834 47,339 52,141
Net income 1 16,857 20,338 29,417 29,698 33,760 39,466 43,182 47,126
Net Debt 1 -67,502 -62,758 -1,02,617 -1,14,592 -1,33,423 -1,76,776 -2,04,520 -2,32,171
Reference price 2 128.31 101.28 127.62 130.05 192.85 172.37 172.37 172.37
Nbr of stocks (in thousands) 32,52,359 31,01,359 31,25,972 31,67,959 31,67,959 32,03,577 - -
Announcement Date 24/02/22 23/02/23 29/02/24 20/02/25 11/02/26 - - -
1CNY in Million2CNY
Estimates

P/E Ratio, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
13.89x3.09x8.02x2.38% 8.13TCr
15.16x1.88x6.24x2.69% 1.08TCr
10.17x1.8x5.24x0.95% 685.6Cr
12.51x2.13x9.81x6.5% 580.56Cr
29.35x2.14x10.49x1.69% 542.53Cr
15.49x2.55x10.87x6.5% 388.26Cr
12.66x2.97x7.43x6.03% 359.05Cr
11.85x1.41x6.33x0.5% 336.48Cr
11.54x2.29x7.01x0.78% 307.32Cr
12.18x4.95x12.3x3.96% 305.12Cr
Average 14.48x 2.52x 8.37x 3.2% 1.27TCr
Weighted average by Cap. 14.26x 2.79x 8.01x 2.67%

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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