Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 519,733 - -
Change - -24.73% 27.01% 3.27% 48.28% -14.93% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 346,030 319,948 294,050
Change - -28.15% 17.89% 0.37% 60.55% -27.53% -7.54% -8.09%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.5x 11.6x 10.6x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.85x 2.48x 2.21x
PEG - 0.7x 0.3x 9.18x 1.3x 0.9x 0.7x 1.1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.31x 4x 3.77x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.87x 2.46x 2.13x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.1x 6.14x 5.17x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 7.42x 6.39x 5.39x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 8.18x 6.74x 5.45x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.2% 14.8% 18.3%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.2 5.401 6.026
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.59% 3.33% 3.71%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.02 13.98 15.32
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 34.9% 38.6% 39.3%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,696 129,867 137,998
EBITDA 1 19,693 22,487 30,764 32,002 38,082 48,761 52,137 56,931
EBIT 1 16,417 19,629 27,709 29,584 35,835 46,618 50,057 54,583
Net income 1 16,857 20,338 29,417 29,698 33,760 37,355 43,429 47,104
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -173,702 -199,785 -225,683
Reference price 2 128.31 101.28 127.62 130.05 192.85 162.35 162.35 162.35
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.($)
12.88x2.67x6.6x2.71% 73.83B
21.35x3.71x13.22x14.98% 15.53B
25.32x2.47x11.72x1.74% 6.78B
9.75x1.26x3.7x1.14% 6.34B
13.28x2.29x10.94x5.42% 5.7B
12.58x2.98x7.77x5.95% 3.66B
15.21x5.22x12.41x3.3% 3.55B
9.47x0.99x4.46x1.39% 3.04B
16.5x1.96x9.57x5.07% 2.88B
Average 15.15x 2.61x 8.93x 4.63% 13.48B
Weighted average by Cap. 14.57x 2.72x 8.01x 4.41%

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