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 5,83,795 - -
Change - -24.73% 27.01% 3.27% 48.28% -4.44% - -
Enterprise Value (EV) 1 3,49,811 2,51,355 2,96,333 2,97,415 4,77,502 4,06,826 3,80,986 3,55,358
Change - -28.15% 17.89% 0.37% 60.55% -14.8% -6.35% -6.73%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 14.8x 13.4x 12.2x
PBR 4.48x 3.16x 3.3x 3x 3.83x 3.14x 2.76x 2.46x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.3x 1.2x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.83x 4.47x 4.15x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.36x 2.92x 2.53x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.73x 7.62x 6.5x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 9.31x 8.02x 6.83x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.96x 8.39x 6.42x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 11.2% 11.9% 15.6%
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% 2.4% 3.01% 3.43%
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 2 128.31 101.28 127.62 130.05 192.85 182.23 182.23 182.23
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.($)
16.25x2.01x6.98x2.61% 1.11TCr
9.81x1.47x4.3x1.02% 659.78Cr
13.33x2.28x10.5x6.1% 617.85Cr
24.91x2.13x10.65x1.83% 565.91Cr
13.15x3.12x7.79x5.8% 372.94Cr
14.79x4.8x11.74x3.56% 323.49Cr
12.26x1.95x8.3x8.14% 309.81Cr
9.54x0.96x4.36x0.62% 276.05Cr
10.13x1.94x5.94x0.89% 269.6Cr
Average 13.80x 2.29x 7.84x 3.4% 500.43Cr
Weighted average by Cap. 14.58x 2.20x 7.81x 3.25%

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