Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 518,302 - -
Change - -24.73% 27.01% 3.27% 48.28% -15.16% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 343,304 318,119 293,145
Change - -28.15% 17.89% 0.37% 60.55% -28.1% -7.34% -7.85%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.6x 11.6x 10.7x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.87x 2.5x 2.24x
PEG - 0.7x 0.3x 9.18x 1.3x 1x 0.7x 1.16x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.29x 4x 3.76x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.84x 2.45x 2.13x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.05x 6.11x 5.18x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 7.37x 6.36x 5.39x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.12x 6.78x 5.44x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.3% 14.7% 18.4%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.084 5.36 5.961
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.52% 3.31% 3.68%
EPS 2 5.01 6.17 9.05 9.19 10.48 11.94 13.91 15.2
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 34.2% 38.5% 39.2%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,718 129,707 137,759
EBITDA 1 19,693 22,487 30,764 32,002 38,082 48,662 52,030 56,576
EBIT 1 16,417 19,629 27,709 29,584 35,835 46,591 50,014 54,380
Net income 1 16,857 20,338 29,417 29,698 33,760 37,283 43,353 46,899
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -174,997 -200,182 -225,157
Reference price 2 128.31 101.28 127.62 130.05 192.85 161.91 161.91 161.91
Nbr of stocks (in thousands) 3,252,359 3,101,359 3,125,972 3,167,959 3,167,959 3,201,251 - -
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 (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
13.56x2.84x7.05x2.52% 77.2B
20.9x3.74x13.25x14.96% 15.68B
10.61x1.43x4.2x1.04% 6.99B
25.34x2.41x11.38x1.78% 6.68B
14.04x2.47x11.47x4.56% 6.12B
14.68x3.59x9.37x5.09% 4.27B
15.22x5.17x12.25x3.3% 3.56B
19x2.33x11.4x4.41% 3.32B
9.98x1.04x4.7x1.33% 3.21B
Average 15.93x 2.78x 9.45x 4.33% 14.11B
Weighted average by Cap. 15.08x 2.87x 8.38x 4.16%

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