Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 528,322 - -
Change - -24.73% 27.01% 3.27% 48.28% -13.52% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 353,325 328,140 303,165
Change - -28.15% 17.89% 0.37% 60.55% -26.01% -7.13% -7.61%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.8x 11.9x 10.9x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.92x 2.55x 2.28x
PEG - 0.7x 0.3x 9.18x 1.3x 1x 0.7x 1.18x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.38x 4.07x 3.84x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.93x 2.53x 2.2x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.26x 6.31x 5.36x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 7.58x 6.56x 5.57x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.36x 7x 5.62x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12% 14.3% 17.8%
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% 2.47% 3.25% 3.61%
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 2 128.31 101.28 127.62 130.05 192.85 165.04 165.04 165.04
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 (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
13.82x2.93x7.26x2.47% 78.57B
21.23x3.82x13.52x14.72% 15.56B
11.12x1.45x4.25x0.99% 7.2B
26.21x2.5x11.78x1.71% 6.67B
13.62x2.48x10.81x4.28% 6.04B
14.07x3.41x8.91x5.31% 4.09B
15.6x5.33x12.63x3.22% 3.57B
15.73x2.23x11.61x4.84% 3.25B
10.12x1.04x4.67x1.31% 3.18B
Average 15.73x 2.80x 9.49x 4.32% 14.24B
Weighted average by Cap. 15.22x 2.93x 8.50x 4.07%

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