(NTES) NetEase - Ratings and Ratios
Games, Music, Education, Translation, Devices
NTES EPS (Earnings per Share)
NTES Revenue
Description: NTES NetEase
NetEase, Inc. (NASDAQ: NTES) is a diversified internet company headquartered in Hangzhou, China, that operates four primary segments: Games and Related Value-Added Services; Youdao (online intelligent learning); NetEase Cloud Music; and Innovative Businesses & Others.
**Gaming** – The core revenue driver, NetEase develops and publishes mobile and PC titles and licenses third-party games. In FY 2023, gaming accounted for roughly 70 % of total revenue, delivering a 23 % net-profit margin. The segment benefits from China’s $45 billion online gaming market and the company’s strong “pay-to-play” user base, though it remains exposed to regulatory caps on gaming time for minors.
**Youdao & Education Services** – Youdao provides AI-enhanced language tools (Dictionary, Hi Echo, Mr. P AI Tutor) and STEAM courses, including the large-language-model “Confucius.” Youdao’s monthly active users grew ~12 % YoY in 2023, and the education segment now contributes about 15 % of net income, driven by rising demand for online learning in China’s post-COVID environment.
**NetEase Cloud Music** – The streaming platform serves over 110 million monthly active users and generates revenue from subscriptions, advertising, and live-streaming concerts. Cloud Music’s subscriber base expanded ~9 % in 2023, positioning it as the second-largest music streaming service in China after Tencent’s QQ Music.
**Innovative Businesses & Others** – This catch-all category includes smart devices (Youdao Dictionary Pen, Listening Pod), online marketing services, and a suite of AI-powered tools such as iRecord (audio transcription) and iArch (home-design AI). While still a modest share of earnings, these offerings reflect NetEase’s strategic push into AI and hardware to diversify beyond its traditional gaming moat.
**Key Economic & Sector Drivers** – NetEase’s performance is tied to (1) China’s consumer-spending trends, especially discretionary spending on gaming and digital entertainment; (2) regulatory developments affecting game approvals and youth gaming limits; and (3) the rapid adoption of generative AI in education and content creation, which could unlock new high-margin revenue streams.
For a deeper quantitative breakdown of NTES’s valuation metrics, you might find ValueRay’s analyst toolkit useful.
NTES Stock Overview
| Market Cap in USD | 94,721m |
| Sub-Industry | Interactive Home Entertainment |
| IPO / Inception | 2000-06-30 |
NTES Stock Ratings
| Growth Rating | 83.8% |
| Fundamental | 86.1% |
| Dividend Rating | 66.7% |
| Return 12m vs S&P 500 | 57.1% |
| Analyst Rating | 4.65 of 5 |
NTES Dividends
| Dividend Yield 12m | 1.94% |
| Yield on Cost 5y | 3.60% |
| Annual Growth 5y | 27.40% |
| Payout Consistency | 83.9% |
| Payout Ratio | 4.9% |
NTES Growth Ratios
| Growth Correlation 3m | 72.9% |
| Growth Correlation 12m | 95.7% |
| Growth Correlation 5y | 30.1% |
| CAGR 5y | 31.45% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.93 |
| CAGR/Mean DD 3y (Pain Ratio) | 2.90 |
| Sharpe Ratio 12m | 1.14 |
| Alpha | 58.13 |
| Beta | 0.817 |
| Volatility | 33.14% |
| Current Volume | 727.8k |
| Average Volume 20d | 605.5k |
| Stop Loss | 144.8 (-3.1%) |
| Signal | -0.22 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (34.21b TTM) > 0 and > 6% of Revenue (6% = 6.58b TTM) |
| FCFTA 0.21 (>2.0%) and ΔFCFTA 2.43pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 102.6% (prev 86.40%; Δ 16.18pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.22 (>3.0%) and CFO 46.56b > Net Income 34.21b (YES >=105%, WARN >=100%) |
| Net Debt (-43.15b) to EBITDA (36.60b) ratio: -1.18 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.23 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (642.9m) change vs 12m ago -1.28% (target <= -2.0% for YES) |
| Gross Margin 63.17% (prev 62.62%; Δ 0.54pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 55.98% (prev 58.22%; Δ -2.24pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -4.97 (EBITDA TTM 36.60b / Interest Expense TTM -6.93b) >= 6 (WARN >= 3) |
Altman Z'' 11.97
| (A) 0.54 = (Total Current Assets 162.95b - Total Current Liabilities 50.45b) / Total Assets 208.50b |
| (B) 0.63 = Retained Earnings (Balance) 130.33b / Total Assets 208.50b |
| (C) 0.18 = EBIT TTM 34.47b / Avg Total Assets 195.92b |
| (D) 4.96 = Book Value of Equity 270.03b / Total Liabilities 54.39b |
| Total Rating: 11.97 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 86.14
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 8.22% = 4.11 |
| 3. FCF Margin 40.47% = 7.50 |
| 4. Debt/Equity 0.08 = 2.50 |
| 5. Debt/Ebitda -1.18 = 2.50 |
| 6. ROIC - WACC (= 10.37)% = 12.50 |
| 7. RoE 24.25% = 2.02 |
| 8. Rev. Trend 75.60% = 5.67 |
| 9. EPS Trend -33.23% = -1.66 |
What is the price of NTES shares?
Over the past week, the price has changed by -1.11%, over one month by -3.53%, over three months by +15.48% and over the past year by +80.45%.
Is NetEase a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NTES is around 167.31 USD . This means that NTES is currently undervalued and has a potential upside of +12.01% (Margin of Safety).
Is NTES a buy, sell or hold?
- Strong Buy: 22
- Buy: 7
- Hold: 2
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the NTES price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 156.5 | 4.8% |
| Analysts Target Price | 156.5 | 4.8% |
| ValueRay Target Price | 187.3 | 25.4% |
Last update: 2025-10-09 03:51
NTES Fundamental Data Overview
P/E Trailing = 20.0523
P/E Forward = 16.0
P/S = 0.8636
P/B = 4.6182
P/EG = 1.215
Beta = 0.817
Revenue TTM = 109.68b CNY
EBIT TTM = 34.47b CNY
EBITDA TTM = 36.60b CNY
Long Term Debt = 428.0m CNY (from longTermDebt, last fiscal year)
Short Term Debt = 11.28b CNY (from shortTermDebt, last quarter)
Debt = 11.28b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -43.15b CNY (from netDebt column, last quarter)
Enterprise Value = 540.15b CNY (675.56b + Debt 11.28b - CCE 146.69b)
Interest Coverage Ratio = -4.97 (Ebit TTM 34.47b / Interest Expense TTM -6.93b)
FCF Yield = 8.22% (FCF TTM 44.39b / Enterprise Value 540.15b)
FCF Margin = 40.47% (FCF TTM 44.39b / Revenue TTM 109.68b)
Net Margin = 31.19% (Net Income TTM 34.21b / Revenue TTM 109.68b)
Gross Margin = 63.17% ((Revenue TTM 109.68b - Cost of Revenue TTM 40.40b) / Revenue TTM)
Gross Margin QoQ = 64.72% (prev 64.10%)
Tobins Q-Ratio = 2.59 (Enterprise Value 540.15b / Total Assets 208.50b)
Interest Expense / Debt = 5.58% (Interest Expense 629.3m / Debt 11.28b)
Taxrate = 14.66% (1.56b / 10.65b)
NOPAT = 29.42b (EBIT 34.47b * (1 - 14.66%))
Current Ratio = 3.23 (Total Current Assets 162.95b / Total Current Liabilities 50.45b)
Debt / Equity = 0.08 (Debt 11.28b / totalStockholderEquity, last quarter 149.59b)
Debt / EBITDA = -1.18 (Net Debt -43.15b / EBITDA 36.60b)
Debt / FCF = -0.97 (Net Debt -43.15b / FCF TTM 44.39b)
Total Stockholder Equity = 141.06b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.41% (Net Income 34.21b / Total Assets 208.50b)
RoE = 24.25% (Net Income TTM 34.21b / Total Stockholder Equity 141.06b)
RoCE = 24.36% (EBIT 34.47b / Capital Employed (Equity 141.06b + L.T.Debt 428.0m))
RoIC = 19.33% (NOPAT 29.42b / Invested Capital 152.15b)
WACC = 8.96% (E(675.56b)/V(686.84b) * Re(9.03%) + D(11.28b)/V(686.84b) * Rd(5.58%) * (1-Tc(0.15)))
Discount Rate = 9.03% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.54%
[DCF Debug] Terminal Value 76.83% ; FCFE base≈40.46b ; Y1≈46.29b ; Y5≈64.29b
Fair Price DCF = 1465 (DCF Value 927.68b / Shares Outstanding 633.2m; 5y FCF grow 16.84% → 3.0% )
EPS Correlation: -33.23 | EPS CAGR: -50.31% | SUE: -4.0 | # QB: 0
Revenue Correlation: 75.60 | Revenue CAGR: 4.94% | SUE: -0.02 | # QB: 0
Additional Sources for NTES Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle