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 5,61,567 - -
Change - -24.73% 27.01% 3.27% 48.28% -8.08% - -
Enterprise Value (EV) 1 3,49,811 2,51,355 2,96,333 2,97,415 4,77,502 3,84,598 3,58,758 3,33,130
Change - -28.15% 17.89% 0.37% 60.55% -19.46% -6.72% -7.14%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 14.2x 12.9x 11.7x
PBR 4.48x 3.16x 3.3x 3x 3.83x 3.03x 2.66x 2.37x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.3x 1.1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.64x 4.31x 4x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.18x 2.75x 2.37x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.26x 7.19x 6.09x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.81x 7.57x 6.4x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.47x 7.9x 6.01x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 11.8% 12.7% 16.6%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.379 5.489 6.251
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.5% 3.13% 3.56%
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% 35.5% 40.5% 41.7%
Net sales 1 87,606 96,496 1,03,468 1,05,295 1,12,626 1,20,907 1,30,347 1,40,459
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 -1,76,969 -2,02,809 -2,28,437
Reference price 2 128.31 101.28 127.62 130.05 192.85 175.42 175.42 175.42
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.($)
17.75x2.32x8.16x2.42% 1.19TCr
11.13x1.63x4.77x0.93% 735.35Cr
12.86x2.19x10.11x6.32% 596.66Cr
26.51x2.31x11.54x1.72% 595.02Cr
13x3.08x7.68x5.86% 368.81Cr
14.18x4.79x11.36x3.62% 312.26Cr
10.3x1.04x4.77x0.58% 299.89Cr
12.42x1.85x8.63x7.05% 292.07Cr
10.31x1.99x6.09x0.87% 274.57Cr
Average 14.27x 2.36x 8.12x 3.26% 518.49Cr
Weighted average by Cap. 15.33x 2.29x 8.17x 3.03%

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