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 5,33,358 - -
Change - -24.73% 27.01% 3.27% 48.28% -12.7% - -
Enterprise Value (EV) 1 3,49,811 2,51,355 2,96,333 2,97,415 4,77,502 3,56,797 3,31,243 3,05,848
Change - -28.15% 17.89% 0.37% 60.55% -25.28% -7.16% -7.67%
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 2.25x
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 4.1x 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 7.66x 6.64x 5.59x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.17x 6.99x 5.88x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 7.86x 7.29x 5.52x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.7% 13.7% 18.1%
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% 3.27% 3.72%
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 1,03,468 1,05,295 1,12,626 1,20,854 1,30,212 1,40,247
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 -1,02,617 -1,14,592 -1,33,423 -1,76,561 -2,02,115 -2,27,510
Reference price 2 128.31 101.28 127.62 130.05 192.85 166.61 166.61 166.61
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.($)
13.52x2.95x7.66x2.62% 7.91TCr
20.14x3.55x12.89x15.59% 1.48TCr
11.09x1.46x4.29x1% 703.25Cr
25.54x2.42x11.41x1.75% 651.9Cr
13.44x2.3x10.59x6.06% 624.98Cr
14.19x3.3x8.75x5.22% 407.45Cr
15.22x5.17x12.25x3.3% 348.49Cr
14.53x2.26x10.8x5.96% 335.5Cr
10.37x1.08x4.93x1.28% 315.82Cr
Average 15.34x 2.72x 9.29x 4.75% 1.42TCr
Weighted average by Cap. 14.78x 2.89x 8.59x 4.31%

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