Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 532,687 - -
Change - -24.73% 27.01% 3.27% 48.28% -12.81% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 356,125 330,572 305,176
Change - -28.15% 17.89% 0.37% 60.55% -25.42% -7.18% -7.68%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.4x 12.1x 11x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.84x 2.5x 2.22x
PEG - 0.7x 0.3x 9.18x 1.3x 0.8x 1.2x 1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.41x 4.09x 3.8x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.95x 2.54x 2.18x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.65x 6.63x 5.58x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.16x 6.97x 5.87x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 7.84x 7.28x 5.51x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.8% 13.7% 18.1%
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% 2.64% 3.31% 3.76%
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 2 128.31 101.28 127.62 130.05 192.85 164.77 164.77 164.77
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 (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
13.37x2.9x7.53x2.64% 78.21B
17.8x2.32x8.73x1.78% 12.41B
12.41x1.53x4.54x0.96% 7.25B
25.55x2.4x11.27x1.73% 6.49B
13.47x2.31x10.62x6.04% 6.27B
14.24x3.46x8.68x5.33% 4.09B
14.98x2.34x11.2x5.78% 3.46B
14.98x5.07x12.02x3.36% 3.44B
10.97x1.17x5.27x1% 3.33B
Average 15.31x 2.61x 8.87x 3.18% 13.88B
Weighted average by Cap. 14.45x 2.73x 8.03x 2.73%

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