Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 565,063 - -
Change - -24.73% 27.01% 3.27% 48.28% -7.51% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 388,502 362,948 337,553
Change - -28.15% 17.89% 0.37% 60.55% -18.64% -6.58% -7%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 14.3x 13x 11.8x
PBR 4.48x 3.16x 3.3x 3x 3.83x 3.04x 2.68x 2.38x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.3x 1.1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.68x 4.34x 4.03x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 3.21x 2.79x 2.41x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 8.34x 7.28x 6.17x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.9x 7.66x 6.49x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.55x 7.99x 6.09x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 11.7% 12.5% 16.4%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.357 5.456 6.201
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.47% 3.09% 3.51%
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% 35.4% 40.2% 41.4%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,854 130,212 140,247
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,576 49,870 54,678
EBIT 1 16,417 19,629 27,709 29,584 35,835 43,657 47,402 52,032
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 -102,617 -114,592 -133,423 -176,561 -202,115 -227,510
Reference price 2 128.31 101.28 127.62 130.05 192.85 176.51 176.51 176.51
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 24/2/22 23/2/23 29/2/24 20/2/25 11/2/26 - - -
1CNY in Million2CNY
Estimates

P/E, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
14.32x3.21x8.34x2.47% 83.73B
17.45x2.27x8.04x2.47% 12.08B
12.78x1.6x4.73x0.93% 7.51B
13.88x2.38x10.96x5.86% 6.45B
27.18x2.39x11.95x1.68% 6.33B
14.18x3.45x8.64x5.35% 4.07B
14.81x5x11.85x3.4% 3.43B
11.37x1.21x5.57x0.52% 3.42B
14.63x2.28x10.89x5.91% 3.38B
Average 15.62x 2.64x 9.00x 3.18% 14.49B
Weighted average by Cap. 15.07x 2.93x 8.51x 2.66%

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