NTES Stock Analysis: NetEase | NASDAQ
Electronic Gaming & Multimedia | NASDAQ, USA | Market Cap: 73.891m USD | 12M Return: -18.4% | US64110W1027 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 72.4M
EPS Trend: -23.3%
Qual. Beats: 0
Rev. Trend: 96.6%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
NetEase, Inc. (NASDAQ: NTES) is a China-based internet and online services company headquartered in Hangzhou and founded in 1997. It operates through four main segments: Games and Related Value-Added Services; Youdao; NetEase Cloud Music; and Innovative Businesses and Others.
The company is a major player in Chinas interactive entertainment sector, developing and publishing both mobile and PC games while also licensing titles from third-party developers. NetEase monetizes its gaming portfolio through in-game purchases, live streaming, and the sale of game-themed merchandise, and it competes in a market historically dominated by Tencent.
Youdao is NetEases intelligent learning and education-focused subsidiary, offering digital content tools, online tutoring platforms, and a growing suite of AI-powered products. These include the Youdao Dictionary, AI-based English tutors such as Hi Echo, large language models like Confucius targeted at the education sector, and smart hardware devices such as the Youdao Dictionary Pen. The segment combines consumer education, SaaS-style learning tools, and AI applications.
NetEase Cloud Music provides a music streaming platform alongside livestreaming features. The Innovative Businesses and Others segment includes online marketing services (performance-based advertising and cross-platform promotion) and other emerging digital initiatives. Online marketing services use standard internet advertising formats such as banners, text links, videos, and rich media.
NetEase is listed on NASDAQ following its 2000 IPO and is classified within the Communication Services sector under the Interactive Home Entertainment sub-industry.
- Marvel Rivals global launch boosts game segment revenue
- China NPPA game license approvals drive pipeline visibility
- Youdao AI tutoring products expand education margins
| Net Income: 32.5b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.21 > 0.02 and ΔFCF/TA 0.20 > 1.0 |
| NWC/Revenue: 117.1% < 20% (prev 102.6%; Δ 14.57% < -1%) |
| CFO/TA 0.22 > 3% & CFO 51.1b > Net Income 32.5b |
| Net Debt (-167b) to EBITDA (45.4b): -3.68 < 3 |
| Current Ratio: 3.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (644.3m) vs 12m ago 0.22% < -2% |
| Gross Margin: 67.15% > 18% (prev 63.17%; Δ 3.98% > 0.5%) |
| Asset Turnover: 52.87% > 50% (prev 52.60%; Δ 0.26% > 0%) |
| Interest Coverage Ratio: 17.56 > 6 (EBIT TTM 43.2b / Interest Expense TTM 2.46b) |
| A: 0.59 (Total Current Assets 192b - Total Current Liabilities 55.6b) / Total Assets 232b |
| B: 0.69 (Retained Earnings 159b / Total Assets 232b) |
| C: 0.20 (EBIT TTM 43.2b / Avg Total Assets 220b) |
| D: 2.76 (Book Value of Equity 167b / Total Liabilities 60.7b) |
| Altman-Z'' = 10.30 = AAA |
| DSRI: 0.94 (Receivables 5.75b/5.78b, Revenue 117b/110b) |
| GMI: 0.94 (GM 63.17% / 67.15%) |
| AQI: 0.77 (AQ_t 0.14 / AQ_t-1 0.18) |
| SGI: 1.06 (Revenue 117b / 110b) |
| TATA: -0.08 (NI 32.5b - CFO 51.1b) / TA 232b) |
| Beneish M = -3.23 (Cap -4..+1) = AA |
As of October 01, 2026, the stock is trading at USD 121.16 with a total of 866,411 shares traded. Over the past week, the price has changed by +3.54%, over one month by -0.11%, over three months by -5.07% and over the past year by -18.35%.
Current recommended Stop Loss: 117.30 (which is 3.2% or 1.4 ATR below the current price).
NetEase has received a consensus analysts rating of 4.65. Therefore, it is recommended to buy NTES.
- StrongBuy: 22
- Buy: 7
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 162.5 | 34.1% |
Market Cap CNY = 495b (73.9b USD * 6.70455 USD.CNY)
P/E Trailing = 15.388
P/E Forward = 11.1359
P/S = 0.6337
P/B = 3.0017
P/EG = 1.1595
Revenue TTM = 117b CNY
EBIT TTM = 43.2b CNY
EBITDA TTM = 45.4b CNY
Long Term Debt = unknown (0.0)
Short Term Debt = 12.6b CNY (from shortTermDebt, last quarter)
Debt = 13.0b CNY (from shortLongTermDebtTotal, last quarter) + Leases 345.3m
Net Debt = -167b CNY (calculated: Debt 13.0b - CCE 180b)
Enterprise Value = 328b CNY (495b + Debt 13.0b - CCE 180b)
Interest Coverage Ratio = 17.56 (Ebit TTM 43.2b / Interest Expense TTM 2.46b)
EV/FCF = 6.58x (Enterprise Value 328b / FCF TTM 49.9b)
FCF Yield = 15.20% (FCF TTM 49.9b / Enterprise Value 328b)
FCF Margin = 42.84% (FCF TTM 49.9b / Revenue TTM 117b)
Net Margin = 27.89% (Net Income TTM 32.5b / Revenue TTM 117b)
Gross Margin = 67.15% ((Revenue TTM 117b - Cost of Revenue TTM 38.3b) / Revenue TTM)
Gross Margin QoQ = 70.47% (prev 69.36%)
Tobins Q-Ratio = 1.41 (Enterprise Value 328b / Total Assets 232b)
Interest Expense / Debt = 18.97% (Interest Expense 2.46b / Debt 13.0b)
Taxrate = 18.53% (7.54b / 40.7b)
NOPAT = 35.2b (EBIT 43.2b * (1 - 18.53%))
Current Ratio = 3.45 (Total Current Assets 192b / Total Current Liabilities 55.6b)
Debt / Equity = 0.08 (Debt 13.0b / totalStockholderEquity, last quarter 167b)
Debt / EBITDA = -3.68 (Net Debt -167b / EBITDA 45.4b)
Debt / FCF = -3.34 (Net Debt -167b / FCF TTM 49.9b)
Total Stockholder Equity = 162b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.74% (Net Income 32.5b / Total Assets 232b)
RoE = 20.04% (Net Income TTM 32.5b / Total Stockholder Equity 162b)
RoCE = 26.62% (EBIT 43.2b / Capital Employed (Equity 162b + L.T.Debt 0.0))
RoIC = 19.17% (NOPAT 35.2b / Invested Capital 183b)
WACC = 7.33% (E(495b)/V(508b) * Re(7.12%) + D(13.0b)/V(508b) * Rd(18.97%) * (1-Tc(0.19)))
Discount Rate = 7.12% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -55.14 | Cagr: -0.48%
[DCF] Terminal Value 76.93% ; FCFF base≈47.7b ; Y1≈52.8b ; Y5≈68.0b
[DCF] Fair Price = 1.88k (EV 1038b - Net Debt -167b = Equity 1205b / Shares 640.3m; r=8.35% [WACC [floored]]; 5y FCF grow 12.45% → 2.50% )
EPS Correlation: -23.31 | EPS CAGR: -2.47% | SUE: -0.34 | # QB: 0
Revenue Correlation: 96.62 | Revenue CAGR: 4.63% | SUE: 0.07 | # QB: 0
EPS current Quarter (2026-09-30): EPS=16.16 | Chg30d=+0.31% | Revisions=+42% | Analysts=10
EPS current Year (2026-12-31): EPS=61.73 | Chg30d=-0.61% | Revisions=-88% | GrowthEPS=+6.4% | GrowthRev=+7.2%
EPS next Year (2027-12-31): EPS=72.11 | Chg30d=+0.35% | Revisions=+35% | GrowthEPS=+16.8% | GrowthRev=+7.6%
[Analyst] Revisions Ratio: -15% (up=21, down=29)