(NTES) NetEase - Ratings and Ratios
Games, Music, Education, Translation, Devices
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.52% |
| Yield on Cost 5y | 4.22% |
| Yield CAGR 5y | -10.79% |
| Payout Consistency | 76.6% |
| Payout Ratio | 4.7% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 38.5% |
| Value at Risk 5%th | 56.1% |
| Relative Tail Risk | -11.54% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.47 |
| Alpha | 53.16 |
| CAGR/Max DD | 0.87 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.486 |
| Beta | 0.538 |
| Beta Downside | 0.422 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.97% |
| Mean DD | 10.87% |
| Median DD | 8.83% |
Description: NTES NetEase September 25, 2025
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.
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (36.28b TTM) > 0 and > 6% of Revenue (6% = 6.71b TTM) |
| FCFTA 0.22 (>2.0%) and ΔFCFTA 2.34pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 108.3% (prev 89.76%; Δ 18.55pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.23 (>3.0%) and CFO 48.93b > Net Income 36.28b (YES >=105%, WARN >=100%) |
| Net Debt (-39.15b) to EBITDA (28.93b) ratio: -1.35 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.42 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (NaN) change vs 12m ago NaN% (target <= -2.0% for YES) |
| Gross Margin 63.47% (prev 62.79%; Δ 0.69pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 56.00% (prev 57.16%; Δ -1.16pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -1.69 (EBITDA TTM 28.93b / Interest Expense TTM -16.19b) >= 6 (WARN >= 3) |
Altman Z'' 11.90
| (A) 0.56 = (Total Current Assets 171.21b - Total Current Liabilities 50.09b) / Total Assets 214.49b |
| (B) 0.61 = Retained Earnings (Balance) 130.33b / Total Assets 214.49b |
| (C) 0.14 = EBIT TTM 27.32b / Avg Total Assets 199.69b |
| (D) 5.04 = Book Value of Equity 270.03b / Total Liabilities 53.56b |
| Total Rating: 11.90 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 88.47
| 1. Piotroski 5.50pt |
| 2. FCF Yield 7.96% |
| 3. FCF Margin 41.93% |
| 4. Debt/Equity 0.08 |
| 5. Debt/Ebitda -1.35 |
| 6. ROIC - WACC (= 7.18)% |
| 7. RoE 24.67% |
| 8. Rev. Trend 86.33% |
| 9. EPS Trend 79.71% |
What is the price of NTES shares?
Over the past week, the price has changed by +2.72%, over one month by -5.79%, over three months by +2.30% and over the past year by +63.24%.
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 | 164.4 | 19.5% |
| Analysts Target Price | 164.4 | 19.5% |
| ValueRay Target Price | 167.5 | 21.7% |
NTES Fundamental Data Overview November 23, 2025
P/E Trailing = 16.8449
P/E Forward = 13.9276
P/S = 0.7683
P/B = 3.8476
P/EG = 1.0574
Beta = 0.905
Revenue TTM = 111.83b CNY
EBIT TTM = 27.32b CNY
EBITDA TTM = 28.93b CNY
Long Term Debt = 428.0m CNY (from longTermDebt, last fiscal year)
Short Term Debt = 7.35b CNY (from shortLongTermDebt, last quarter)
Debt = 12.23b CNY (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -39.15b CNY (from netDebt column, last fiscal year)
Enterprise Value = 589.20b CNY (608.30b + Debt 12.23b - CCE 31.33b)
Interest Coverage Ratio = -1.69 (Ebit TTM 27.32b / Interest Expense TTM -16.19b)
FCF Yield = 7.96% (FCF TTM 46.89b / Enterprise Value 589.20b)
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 = 2.75 (Enterprise Value 589.20b / Total Assets 214.49b)
Interest Expense / Debt = 5.14% (Interest Expense 629.3m / Debt 12.23b)
Taxrate = 13.02% (1.32b / 10.11b)
NOPAT = 23.77b (EBIT 27.32b * (1 - 13.02%))
Current Ratio = 3.42 (Total Current Assets 171.21b / Total Current Liabilities 50.09b)
Debt / Equity = 0.08 (Debt 12.23b / totalStockholderEquity, last quarter 156.26b)
Debt / EBITDA = -1.35 (Net Debt -39.15b / EBITDA 28.93b)
Debt / FCF = -0.84 (Net Debt -39.15b / FCF TTM 46.89b)
Total Stockholder Equity = 147.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.92% (Net Income 36.28b / Total Assets 214.49b)
RoE = 24.67% (Net Income TTM 36.28b / Total Stockholder Equity 147.09b)
RoCE = 18.52% (EBIT 27.32b / Capital Employed (Equity 147.09b + L.T.Debt 428.0m))
RoIC = 15.11% (NOPAT 23.77b / Invested Capital 157.26b)
WACC = 7.93% (E(608.30b)/V(620.53b) * Re(8.0%) + D(12.23b)/V(620.53b) * Rd(5.14%) * (1-Tc(0.13)))
Discount Rate = 8.0% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -100.0 | Cagr: -0.99%
[DCF Debug] Terminal Value 81.28% ; FCFE base≈42.57b ; Y1≈51.96b ; Y5≈86.50b
Fair Price DCF = 2328 (DCF Value 1473.78b / Shares Outstanding 633.2m; 5y FCF grow 23.58% → 3.0% )
EPS Correlation: 79.71 | EPS CAGR: 11.48% | SUE: -0.07 | # QB: 0
Revenue Correlation: 86.33 | Revenue CAGR: 4.12% | SUE: -0.03 | # QB: 0
Additional Sources for NTES Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle