(NTES) NetEase - Overview
Stock: Games, Music, Education, Cloud, Advertising
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.57% |
| Yield on Cost 5y | 2.82% |
| Yield CAGR 5y | 38.49% |
| Payout Consistency | 83.9% |
| Payout Ratio | 4.9% |
| Risk 5d forecast | |
|---|---|
| Volatility | 38.2% |
| Relative Tail Risk | -12.6% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.73 |
| Alpha | 21.00 |
| Character TTM | |
|---|---|
| Beta | 0.483 |
| Beta Downside | 0.378 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.97% |
| CAGR/Max DD | 0.46 |
Description: NTES NetEase January 27, 2026
NetEase, Inc. (NASDAQ:NTES) operates a diversified digital ecosystem in China and abroad, spanning online games, music streaming, intelligent learning services, and broader internet content. Its business is organized into four segments: Games and Related Value-Added Services; Youdao (education and AI tools); NetEase Cloud Music; and Innovative Businesses & Others, which together deliver mobile/PC games, licensed titles, live-streaming, game-related merchandise, AI-enhanced language and learning platforms, and smart-device hardware.
Key recent metrics (FY 2025): total revenue $15.2 billion, up 8% YoY; net profit $2.3 billion, a 12% increase; monthly active users across all platforms ≈ 800 million, with the Games segment contributing ~55% of revenue and Cloud Music posting a 14% YoY growth in subscription revenue. The Youdao education suite now serves over 120 million users, driven by AI-powered tutoring tools such as Confucius and Hi Echo.
Sector drivers shaping NetEase’s outlook include the Chinese government’s relaxed approval process for new video-game titles-boosting pipeline pipelines by an estimated 20% YoY-and the broader Asian mobile-gaming market’s projected 9% CAGR through 2028. Parallelly, the rapid adoption of generative AI in education is expanding demand for AI-tutors and language-learning apps, a trend NetEase is capitalizing on through its Youdao platform.
For a deeper quantitative dive into NetEase’s valuation dynamics, you may find ValueRay’s analytical tools useful.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 36.28b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA 2.34 > 1.0 |
| NWC/Revenue: 108.3% < 20% (prev 89.76%; Δ 18.55% < -1%) |
| CFO/TA 0.23 > 3% & CFO 48.93b > Net Income 36.28b |
| Net Debt (-23.98b) to EBITDA (37.56b): -0.64 < 3 |
| Current Ratio: 3.42 > 1.5 & < 3 |
| Outstanding Shares: last quarter (644.7m) vs 12m ago -1.01% < -2% |
| Gross Margin: 63.47% > 18% (prev 0.63%; Δ 6285 % > 0.5%) |
| Asset Turnover: 56.00% > 50% (prev 57.16%; Δ -1.16% > 0%) |
| Interest Coverage Ratio: -4.32 > 6 (EBITDA TTM 37.56b / Interest Expense TTM -8.18b) |
Altman Z'' 10.00
| A: 0.56 (Total Current Assets 171.21b - Total Current Liabilities 50.09b) / Total Assets 214.49b |
| B: 0.61 (Retained Earnings 130.33b / Total Assets 214.49b) |
| C: 0.18 (EBIT TTM 35.34b / Avg Total Assets 199.69b) |
| D: 5.04 (Book Value of Equity 270.03b / Total Liabilities 53.56b) |
| Altman-Z'' Score: 12.17 = AAA |
Beneish M -3.23
| DSRI: 0.91 (Receivables 5.96b/6.17b, Revenue 111.83b/105.69b) |
| GMI: 0.99 (GM 63.47% / 62.79%) |
| AQI: 0.83 (AQ_t 0.16 / AQ_t-1 0.20) |
| SGI: 1.06 (Revenue 111.83b / 105.69b) |
| TATA: -0.06 (NI 36.28b - CFO 48.93b) / TA 214.49b) |
| Beneish M-Score: -3.23 (Cap -4..+1) = AA |
What is the price of NTES shares?
Over the past week, the price has changed by -2.58%, over one month by -8.27%, over three months by -6.97% and over the past year by +26.03%.
Is NTES a buy, sell or hold?
- StrongBuy: 22
- Buy: 7
- Hold: 2
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the NTES price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 168.7 | 31% |
| Analysts Target Price | 168.7 | 31% |
| ValueRay Target Price | 145 | 12.6% |
NTES Fundamental Data Overview January 31, 2026
P/E Trailing = 16.3163
P/E Forward = 13.9665
P/S = 0.7611
P/B = 3.723
P/EG = 1.0574
Revenue TTM = 111.83b CNY
EBIT TTM = 35.34b CNY
EBITDA TTM = 37.56b CNY
Long Term Debt = 428.0m CNY (from longTermDebt, last fiscal year)
Short Term Debt = 7.35b CNY (from shortTermDebt, last quarter)
Debt = 7.35b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -23.98b CNY (from netDebt column, last quarter)
Enterprise Value = 449.88b CNY (591.62b + Debt 7.35b - CCE 149.09b)
Interest Coverage Ratio = -4.32 (Ebit TTM 35.34b / Interest Expense TTM -8.18b)
EV/FCF = 9.60x (Enterprise Value 449.88b / FCF TTM 46.89b)
FCF Yield = 10.42% (FCF TTM 46.89b / Enterprise Value 449.88b)
FCF Margin = 41.93% (FCF TTM 46.89b / Revenue TTM 111.83b)
Net Margin = 32.45% (Net Income TTM 36.28b / Revenue TTM 111.83b)
Gross Margin = 63.47% ((Revenue TTM 111.83b - Cost of Revenue TTM 40.84b) / Revenue TTM)
Gross Margin QoQ = 64.10% (prev 64.72%)
Tobins Q-Ratio = 2.10 (Enterprise Value 449.88b / Total Assets 214.49b)
Interest Expense / Debt = 8.56% (Interest Expense 629.3m / Debt 7.35b)
Taxrate = 13.02% (1.32b / 10.11b)
NOPAT = 30.74b (EBIT 35.34b * (1 - 13.02%))
Current Ratio = 3.42 (Total Current Assets 171.21b / Total Current Liabilities 50.09b)
Debt / Equity = 0.05 (Debt 7.35b / totalStockholderEquity, last quarter 156.26b)
Debt / EBITDA = -0.64 (Net Debt -23.98b / EBITDA 37.56b)
Debt / FCF = -0.51 (Net Debt -23.98b / FCF TTM 46.89b)
Total Stockholder Equity = 147.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.17% (Net Income 36.28b / Total Assets 214.49b)
RoE = 24.67% (Net Income TTM 36.28b / Total Stockholder Equity 147.09b)
RoCE = 23.95% (EBIT 35.34b / Capital Employed (Equity 147.09b + L.T.Debt 428.0m))
RoIC = 19.54% (NOPAT 30.74b / Invested Capital 157.26b)
WACC = 7.70% (E(591.62b)/V(598.97b) * Re(7.70%) + D(7.35b)/V(598.97b) * Rd(8.56%) * (1-Tc(0.13)))
Discount Rate = 7.70% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -33.33 | Cagr: -0.40%
[DCF Debug] Terminal Value 82.11% ; FCFF base≈42.57b ; Y1≈51.95b ; Y5≈86.34b
Fair Price DCF = 2496 (EV 1556.75b - Net Debt -23.98b = Equity 1580.73b / Shares 633.2m; r=7.70% [WACC]; 5y FCF grow 23.58% → 2.90% )
EPS Correlation: -18.57 | EPS CAGR: -41.58% | SUE: -4.0 | # QB: 0
Revenue Correlation: 86.32 | Revenue CAGR: 4.12% | SUE: -0.03 | # QB: 0
EPS next Quarter (2026-03-31): EPS=15.93 | Chg30d=+0.427 | Revisions Net=-1 | Analysts=4
EPS next Year (2026-12-31): EPS=65.32 | Chg30d=+0.023 | Revisions Net=+0 | Growth EPS=+6.8% | Growth Revenue=+7.9%