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 5,54,926 - -
Change - -24.73% 27.01% 3.27% 48.28% -9.17% - -
Enterprise Value (EV) 1 3,49,811 2,51,355 2,96,333 2,97,415 4,77,502 3,76,584 3,48,516 3,20,426
Change - -28.15% 17.89% 0.37% 60.55% -21.13% -7.45% -8.06%
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 4.59x 4.25x 3.96x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.11x 2.67x 2.28x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.09x 6.97x 5.86x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.59x 7.33x 6.15x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.29x 7.67x 5.79x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.1% 13% 17.3%
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 1,03,468 1,05,295 1,12,626 1,20,899 1,30,458 1,40,259
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 -1,02,617 -1,14,592 -1,33,423 -1,78,342 -2,06,410 -2,34,500
Reference price 2 128.31 101.28 127.62 130.05 192.85 173.22 173.22 173.22
Nbr of stocks (in thousands) 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, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
15.35x1.87x6.44x2.75% 1.07TCr
10.61x1.87x5.46x0.92% 692.83Cr
13.44x2.3x10.59x6.05% 620.96Cr
29.62x2.16x10.62x1.67% 540.1Cr
13.6x3.25x8.12x5.61% 384.3Cr
14.56x2.4x10.21x6.86% 366.56Cr
11.49x1.3x5.87x0.52% 319.54Cr
14.32x4.53x11.01x3.69% 315.03Cr
10.22x1.94x5.92x0.88% 271.08Cr
Average 14.80x 2.40x 8.25x 3.22% 508.43Cr
Weighted average by Cap. 15.20x 2.27x 8.04x 3.16%

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