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 5,30,963 - -
Change - -24.73% 27.01% 3.27% 48.28% -13.09% - -
Enterprise Value (EV) 1 3,49,811 2,51,355 2,96,333 2,97,415 4,77,502 3,54,402 3,28,848 3,03,453
Change - -28.15% 17.89% 0.37% 60.55% -25.78% -7.21% -7.72%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.5x 12.2x 11.1x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.86x 2.51x 2.24x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.1x 1.1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.25x 4.08x 3.79x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.84x 2.52x 2.16x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.57x 6.55x 5.55x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 7.32x 6.91x 5.83x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 7.8x 7.24x 5.48x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.8% 13.8% 18.3%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 3.573 5.476 6.201
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.15% 3.3% 3.74%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.26 13.62 14.99
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 29.1% 40.2% 41.4%
Net sales 1 87,606 96,496 1,03,468 1,05,295 1,12,626 1,24,871 1,30,259 1,40,247
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,812 50,187 54,678
EBIT 1 16,417 19,629 27,709 29,584 35,835 48,447 47,574 52,032
Net income 1 16,857 20,338 29,417 29,698 33,760 39,288 43,170 46,960
Net Debt 1 -67,502 -62,758 -1,02,617 -1,14,592 -1,33,423 -1,76,561 -2,02,115 -2,27,510
Reference price 2 128.31 101.28 127.62 130.05 192.85 165.86 165.86 165.86
Nbr of stocks (in thousands) 32,52,359 31,01,359 31,25,972 31,67,959 31,67,959 32,01,251 - -
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.($)
13.54x2.96x7.68x2.61% 7.94TCr
20.08x3.54x12.83x15.64% 1.48TCr
10.85x1.42x4.16x1.02% 698.61Cr
25.57x2.43x11.43x1.74% 657.31Cr
13.02x2.22x10.23x6.25% 606.47Cr
14.26x3.32x8.81x5.19% 410.16Cr
15.17x5.15x12.21x3.31% 349.8Cr
14.11x2.18x10.42x6.13% 326.37Cr
9.89x1x4.59x1.34% 306.17Cr
Average 15.17x 2.69x 9.15x 4.81% 1.42TCr
Weighted average by Cap. 14.74x 2.88x 8.56x 4.32%

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