Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2020 2021 2022 2023 2024 2025 2026 2027
Capitalization 1 429,419 417,313 314,113 398,949 412,006 522,999 522,999 -
Change - -2.82% -24.73% 27.01% 3.27% 26.94% 0% -
Enterprise Value (EV) 1 355,454 349,811 251,355 296,333 297,415 373,518 350,330 323,556
Change - -1.59% -28.15% 17.89% 0.37% 25.59% -6.21% -7.64%
P/E ratio 34.5x 25.6x 16.4x 14.1x 14.2x 18.4x 14.8x 12.6x
PBR 5x 4.48x 3.16x 3.3x 3x 3.2x 2.83x 2.53x
PEG - 0.7x 0.7x 0.3x 9.18x 1.3x -79.01x 0.7x
Capitalization / Revenue 5.83x 4.76x 3.26x 3.86x 3.91x 5.42x 4.33x 3.97x
EV / Revenue 4.83x 3.99x 2.6x 2.86x 2.82x 3.28x 2.9x 2.46x
EV / EBITDA 19.8x 17.8x 11.2x 9.63x 9.29x 9.65x 8.21x 6.74x
EV / EBIT 24.4x 21.3x 12.8x 10.7x 10.1x 10.3x 8.78x 7.34x
EV / FCF 14.9x 16x 10x 8.97x 7.93x 9.49x 7.86x 7x
FCF Yield 6.7% 6.24% 9.97% 11.1% 12.6% 10.5% 12.7% 14.3%
Dividend per Share 2 1.012 1.481 1.916 3.688 3.751 3.912 4.233 5.395
Rate of return 0.81% 1.15% 1.89% 2.89% 2.88% 2.37% 2.56% 3.27%
EPS 2 3.6 5.01 6.17 9.05 9.19 10.48 11.18 13.13
Distribution rate 28.1% 29.6% 31.1% 40.8% 40.8% 34.9% 37.9% 41.1%
Net sales 1 73,667 87,606 96,496 103,468 105,295 112,626 120,890 131,683
EBITDA 1 17,996 19,693 22,487 30,764 32,002 46,726 42,660 47,997
EBIT 1 14,538 16,417 19,629 27,709 29,584 35,835 39,923 44,074
Net income 1 12,063 16,857 20,338 29,417 29,698 33,760 37,123 41,240
Net Debt 1 -73,965 -67,502 -62,758 -102,617 -114,592 -149,480 -172,668 -199,442
Reference price 2 124.28 128.31 101.28 127.62 130.05 165.09 165.09 165.09
Nbr of stocks (in thousands) 3,455,117 3,252,359 3,101,359 3,125,972 3,167,959 3,167,959 3,167,959 -
Announcement Date 25/2/21 24/2/22 23/2/23 29/2/24 20/2/25 11/2/26 - -
1CNY in Million2CNY
Estimates

P/E ratio, Detailed evolution

P/E (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
14.74x3.28x9.65x2.37% 75.78B
27.21x4.86x14.74x1.11% 19.5B
18.7x3.13x14.7x4.38% 8.31B
13.83x2.56x6.14x-.--% 8B
34.7x2.55x12.55x1.48% 6.47B
55.78x5.65x29.97x0.78% 6.17B
22.54x4.82x16.68x0.64% 5.02B
18.5x4.6x12.14x4.08% 4.53B
15.19x5.58x13.75x3.51% 3.51B
14.82x1.98x11.71x0.76% 3.25B
Average 23.60x 3.90x 14.20x 1.91% 14.05B
Weighted average by Cap. 19.79x 3.65x 11.96x 2.05%

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

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  4. Valuation NetEase, Inc.