Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 561,645 - -
Change - -24.73% 27.01% 3.27% 48.28% -8.07% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 383,303 355,235 327,145
Change - -28.15% 17.89% 0.37% 60.55% -19.73% -7.32% -7.91%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 14x 12.7x 11.6x
PBR 4.48x 3.16x 3.3x 3x 3.83x 3.02x 2.66x 2.37x
PEG - 0.7x 0.3x 9.18x 1.3x 0.7x 1.2x 1.16x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.65x 4.31x 4x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.17x 2.72x 2.33x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.24x 7.11x 5.98x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.74x 7.47x 6.27x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.44x 7.82x 5.91x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 11.8% 12.8% 16.9%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.4 5.249 5.903
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.51% 2.99% 3.37%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.48 13.77 15.15
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 35.3% 38.1% 39%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,899 130,458 140,259
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,543 49,974 54,672
EBIT 1 16,417 19,629 27,709 29,584 35,835 43,834 47,563 52,141
Net income 1 16,857 20,338 29,417 29,698 33,760 39,621 43,393 47,126
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -178,342 -206,410 -234,500
Reference price 2 128.31 101.28 127.62 130.05 192.85 175.32 175.32 175.32
Nbr of stocks (in thousands) 3,252,359 3,101,359 3,125,972 3,167,959 3,167,959 3,203,577 - -
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.($)
15.3x1.86x6.39x2.76% 10.63B
13.24x2.26x10.43x6.14% 6.12B
9.72x1.68x4.89x1% 6.35B
29.35x2.14x10.49x1.69% 5.37B
13.42x3.2x7.98x5.68% 3.79B
14.71x2.43x10.33x6.79% 3.7B
14.43x4.57x11.12x3.66% 3.18B
11.53x1.36x6.05x0.51% 3.26B
10.22x1.94x5.93x0.88% 2.71B
Average 14.66x 2.38x 8.18x 3.23% 5.01B
Weighted average by Cap. 15.06x 2.24x 7.95x 3.21%

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