NetEase, Inc. (NTES)
POSITIVEPrice
$125.82
Market Cap
$80.61B
Fundamental
79
Technical
60
Composite
73
AI Analysis
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Overview
NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally. The company operates through Games and Related Value-Added Services; Youdao; NetEase Cloud Music; and Innovative Businesses and Others segments. It develops and operates mobile and PC games; and offers games licensed from other developers. The company also provides live streaming service, and other related or ancillary value-added services related to games, such as the sale of game-themed merchandise. In addition, it offers digital content services with interactive learning features, including Youdao Lingshi and Youdao Literature; STEAM courses consisting computer coding courses and other STEAM courses; and adult courses, such as China University massive open online course. Further, the company provides Youdao Dictionary, an online language tool; Confucius, a large language model for the education sector; Hi Echo, an AI-driven virtual English-speaking tutor; Mr. P AI Tutor, a conversation-based tool; Youdao Desktop Translation, a desktop dictionary tool; U-Dictionary, an online dictionary and translation app; iRecord, an audio transcription tool; LectMate, an interpretation software for study-abroad lecture scenarios; iArch, an AI home design software; Baby Genius, an AI baby generator; and One Translate Translator, a translation tool for travelers. It also offers online marketing services consisting of performance-based advertising services, and global marketing and promotion services through banners, text links, videos, logos, buttons, and rich media. Additionally, the company develops and offers smart devices, including Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. NetEase, Inc. was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. The company was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.
Balance Sheet & Liquidity
Revenue
$112.63B
Net Income
$33.76B
Free Cash Flow
$34.15B
Total Equity
$4.87B
Total Liabilities
$10.96B
Current Ratio
3.29
Interest Coverage
-
Debt/EBITDA
0.27
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Fair Value Estimation
UndervaluedFair Value
$853.79
Current Price
$125.82
Margin of Safety
+85.3%
Fair Value Range
$554.96 - $1152.61
Estimation Methods
Valuation Metrics
P/E Ratio
16.11
ROE
22.1%
P/B Ratio
16.55
P/FCF
2.36
Gross Margin
65.7%
ROIC
236.3%
Value Creation (Economic Moat)
ROIC
236.3%
WACC
7.5%
ROIC − WACC
+228.8 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (15)
- Price CAGR 11.32%
- ROIC 236.3%
- Gross Margin 65.7%
- P/FCF 2.36
- Debt/Equity ratio
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- DCF valuation (Undervalued)
- ROE 21.6%
- Revenue Growth 5Y 8.9%
- Analyst Consensus 88% Buy
- PEG Ratio 0.65
- Earnings Quality (OCF/NI) 1.55
- Net Margin Trend 30.0% vs 28.2%
Failed (4)
- P/B Ratio 16.55
- CapEx intensity
- Earnings Surprise avg -4.1%
- Piotroski F-Score 2/9
Unavailable (8)
- EPS data insufficient
- Dividend Payout NaN%
- Operating Margin NaN%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- Share Dilution (missing shares data)
Price Chart
Technical Indicators
RSI (14)
62.48
SMA 50
$117.21
SMA 200
$130.72
MACD
0.29
Volatility
2.3%
Momentum (12m)
-5.2%
RSI 62.5, SMA trend bearish, momentum -5.2%.
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Lei Ding | Founder, CEO & Director | 53 |
| Ms. Aileen Bin Mo | Vice President of Finance | 45 |
| Ms. Margaret Shi | IR Director | - |
| Mr. Paul W. Boltz Jr. | General Counsel | 55 |
| Mr. Bill Pang | Vice President of Corporate Development | - |
| Mr. Yingfeng Ding | Consultant | 53 |
| Ryutaro Ichimura | President & Representative Director of PinCool Inc. | - |
Latest News
Recent headlines for NTES, sourced from Markets Gazette.
- 2d agoPOSITIVEIf You Invested $100 In NetEase Stock 15 Years Ago, You Would Have This Much Today
An investment of $100 in NetEase Inc. (NTES) 15 years ago would have yielded a substantial return, highlighting the company's long-term growth trajectory. While specific figures are not provided in the title, the implication of significant appreciation suggests strong performance in gaming and online services. Investors considering NetEase should analyze its recent product launches, user acquisition strategies, and competitive positioning within the global gaming market to assess future potential. The historical performance indicates a robust business model capable of generating considerable shareholder value over extended periods.
- 27d agoNEUTRALFull Transcript: NetEase Q1 2026 Earnings Call
NetEase, Inc. (NTES) released its Q1 2026 earnings call transcript on May 21, 2026. While the transcript provides detailed insights into the company's performance, strategic initiatives, and future outlook, it does not contain specific financial results or forward-looking guidance that would allow for an immediate assessment of its market impact. Investors will need to analyze the full earnings report, which typically accompanies such calls, to determine the company's financial health and growth prospects. The transcript serves as a resource for understanding management's perspective on operational achievements and challenges.
- 3/23/2026POSITIVEHere's How Much $100 Invested In NetEase 20 Years Ago Would Be Worth Today
An investment of $100 in NetEase Inc. (NTES) twenty years ago would have grown to an estimated $12,500 today, representing a staggering 12,400% return. This performance highlights the company's significant growth trajectory and its ability to generate substantial shareholder value over the long term. For investors, this historical data underscores the potential of well-performing technology stocks in emerging markets and the power of compounding returns. NetEase, a leading online game developer and publisher, has consistently expanded its product offerings and market reach, contributing to its impressive financial performance.
- 3/4/2026POSITIVE$100 Invested In NetEase 15 Years Ago Would Be Worth This Much Today
An investment of $100 in NetEase Inc. (NTES) 15 years ago today would be worth a substantial amount, highlighting the stock's extraordinary long-term performance. While the article doesn't specify the exact figure, its nature implies exponential growth, likely tied to the expansion of the gaming and tech sectors in China. For investors, this historical data underscores the high return potential of well-selected growth stocks and NetEase's ability to innovate and dominate rapidly evolving markets, justifying potential further future gains.
via Markets Gazette