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 5,34,040 - -
Change - -24.73% 27.01% 3.27% 48.28% -12.59% - -
Enterprise Value (EV) 1 3,49,811 2,51,355 2,96,333 2,97,415 4,77,502 3,57,071 3,31,231 3,05,603
Change - -28.15% 17.89% 0.37% 60.55% -25.22% -7.24% -7.74%
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 2.88x 2.53x 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 4.42x 4.09x 3.8x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.95x 2.54x 2.17x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.66x 6.62x 5.59x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.18x 6.97x 5.87x
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 4.379 5.489 6.251
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.63% 3.29% 3.75%
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 1,20,944 1,30,481 1,40,545
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,610 50,027 54,672
EBIT 1 16,417 19,629 27,709 29,584 35,835 43,677 47,490 52,036
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 2 128.31 101.28 127.62 130.05 192.85 166.70 166.70 166.70
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.($)
16.08x1.98x6.85x2.64% 1.09TCr
10.34x1.57x4.62x0.97% 694.4Cr
13.52x2.31x10.66x6.01% 626.97Cr
24.81x2.12x10.59x1.83% 562.28Cr
13.31x3.16x7.9x5.73% 377.26Cr
14.44x4.66x11.4x3.65% 314.99Cr
12.46x1.99x8.47x8.01% 314.8Cr
9.68x0.98x4.46x0.61% 279.6Cr
10.16x1.95x5.96x0.88% 270.41Cr
Average 13.87x 2.30x 7.88x 3.37% 503.85Cr
Weighted average by Cap. 14.59x 2.20x 7.82x 3.22%

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