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 5,40,190 - -
Change - -24.73% 27.01% 3.27% 48.28% -11.58% - -
Enterprise Value (EV) 1 3,49,811 2,51,355 2,96,333 2,97,415 4,77,502 3,63,414 3,35,670 3,08,019
Change - -28.15% 17.89% 0.37% 60.55% -23.89% -7.63% -8.24%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.6x 12.3x 11.1x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.9x 2.54x 2.27x
PEG - 0.7x 0.3x 9.18x 1.3x 0.7x 1.2x 1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.47x 4.14x 3.85x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.01x 2.57x 2.2x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.81x 6.72x 5.63x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.29x 7.09x 5.91x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8x 7.39x 5.56x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.5% 13.5% 18%
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% 2.44% 2.92% 3.49%
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 49,974 54,672
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 2 128.31 101.28 127.62 130.05 192.85 168.62 168.62 168.62
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.($)
15.27x1.9x6.33x2.73% 1.09TCr
10.17x1.8x5.24x0.95% 688.73Cr
12.49x2.12x9.79x6.51% 580.19Cr
29.81x2.18x10.71x1.66% 550.2Cr
15.57x2.57x10.94x6.47% 390.71Cr
12.31x2.87x7.18x6.19% 349.72Cr
11.69x1.39x6.2x0.5% 335.44Cr
10.97x2.14x6.54x0.82% 292.39Cr
12.19x4.96x12.31x3.95% 304.93Cr
Average 14.50x 2.44x 8.36x 3.31% 508.61Cr
Weighted average by Cap. 14.96x 2.26x 7.99x 3.19%

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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