Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 528,011 - -
Change - -24.73% 27.01% 3.27% 48.28% -13.57% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 351,043 325,203 299,574
Change - -28.15% 17.89% 0.37% 60.55% -26.48% -7.36% -7.88%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.4x 12.2x 11x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.84x 2.5x 2.23x
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 4.37x 4.05x 3.76x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.9x 2.49x 2.13x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.54x 6.52x 5.48x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 8.04x 6.86x 5.76x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 7.73x 7.16x 5.41x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 12.9% 14% 18.5%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.379 5.489 6.251
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.65% 3.33% 3.79%
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% 35.5% 40.5% 41.7%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,907 130,347 140,459
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 -176,969 -202,809 -228,437
Reference price 2 128.31 101.28 127.62 130.05 192.85 164.94 164.94 164.94
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.($)
16.25x2x7.02x2.64% 10.91B
11.06x1.61x4.73x0.94% 7.28B
12.72x2.17x9.99x6.39% 5.9B
24.61x2.08x10.37x1.86% 5.52B
13x3.07x7.68x5.87% 3.69B
14.19x4.52x10.97x3.72% 3.07B
10.38x1.07x4.9x0.57% 3.03B
11.98x1.77x8.24x7.31% 2.81B
9.59x1.79x5.49x0.94% 2.55B
Average 13.75x 2.23x 7.71x 3.36% 4.97B
Weighted average by Cap. 14.52x 2.14x 7.62x 3.16%

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