(NTES) NetEase - Overview
Sector: Communication Services | Industry: Electronic Gaming & Multimedia | Exchange: NASDAQ (USA) | Market Cap: 74.157m USD | Total Return: -2.3% in 12m
Video Games, Music Streaming, Online Education, Smart Devices, Advertising
Total Rating 39
Safety 89
Buy Signal -0.31
Electronic Gaming & Multimedia
Industry Rotation: +6.1
Industry Rotation: +6.1
Market Cap:
74.2B
Avg Turnover: 83.4M
Avg Turnover: 83.4M
Risk 3d forecast
Volatility36.7%
VaR 5th Pctl5.82%
VaR vs Median-4.36%
Reward TTM
Sharpe Ratio-0.10
Rel. Str. IBD21.6
Rel. Str. Peer Group26.9
Character TTM
Beta0.504
Beta Downside0.560
Hurst Exponent0.422
Drawdowns 3y
Max DD33.97%
CAGR/Max DD0.34
CAGR/Mean DD0.86
EPS (Earnings per Share)
EPS CAGR: 9.84%
EPS Trend: 69.1%
EPS Trend: 69.1%
Last SUE: -1.93
Qual. Beats: -1
Qual. Beats: -1
Revenue
Rev. CAGR: 4.74%
Rev. Trend: 82.2%
Rev. Trend: 82.2%
Last SUE: -0.19
Qual. Beats: 0
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Description: NTES NetEase
NetEase, Inc. is a diversified internet technology company based in Hangzhou, China, primarily focused on interactive home entertainment, online education, and music streaming. The company operates four distinct segments: Games and Related Value-Added Services, Youdao, NetEase Cloud Music, and Innovative Businesses. Its core revenue driver is the development and operation of mobile and PC games, supplemented by licensed titles and game-themed merchandise.
The company has integrated advanced artificial intelligence into its education and productivity arms through its Youdao segment, deploying large language models and AI tutors to support language learning and digital content services. In the broader Chinese gaming sector, companies like NetEase often utilize a freemium business model, where core gameplay is free while monetization occurs through in-game microtransactions for virtual goods and services.
Beyond entertainment, NetEase maintains a hardware presence through smart devices and provides comprehensive online marketing services for global brands. Investors may find it useful to examine ValueRay for deeper insights into the companys valuation and market positioning. As a major player in the Interactive Home Entertainment sub-industry, NetEase competes globally by expanding its proprietary game development studios into international markets.
- Success of legacy titles and new mobile game launches drive revenue growth
- Regulatory shifts in Chinese gaming licenses impact long-term monetization and pipeline
- NetEase Cloud Music subscription growth improves margins amid competitive streaming landscape
- Expansion of AI-driven educational tools at Youdao accelerates segment profitability
- International studio acquisitions and global publishing efforts diversify geographical revenue mix
Piotroski VR‑10 (Strict)
5.5
| Net Income: 29.70b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.23 > 0.02 and ΔFCF/TA 3.34 > 1.0 |
| NWC/Revenue: 115.3% < 20% (prev 101.2%; Δ 14.08% < -1%) |
| CFO/TA 0.24 > 3% & CFO 52.75b > Net Income 29.70b |
| Net Debt (-160.65b) to EBITDA (36.18b): -4.44 < 3 |
| Current Ratio: 3.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (645.6m) vs 12m ago 0.67% < -2% |
| Gross Margin: 64.32% > 18% (prev 0.63%; Δ 6.37k% > 0.5%) |
| Asset Turnover: 52.72% > 50% (prev 53.41%; Δ -0.69% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
Altman Z''
10.00
| A: 0.58 (Total Current Assets 180.73b - Total Current Liabilities 52.40b) / Total Assets 221.56b |
| B: 0.68 (Retained Earnings 149.75b / Total Assets 221.56b) |
| C: 0.16 (EBIT TTM 33.71b / Avg Total Assets 211.21b) |
| D: 2.84 (Book Value of Equity 160.30b / Total Liabilities 56.35b) |
| Altman-Z'' Score: 10.06 = AAA |
Beneish M
-3.41
| DSRI: 0.76 (Receivables 5.34b/6.74b, Revenue 111.34b/107.27b) |
| GMI: 0.97 (GM 64.32% / 62.71%) |
| AQI: 0.85 (AQ_t 0.15 / AQ_t-1 0.17) |
| SGI: 1.04 (Revenue 111.34b / 107.27b) |
| TATA: -0.10 (NI 29.70b - CFO 52.75b) / TA 221.56b) |
| Beneish M-Score: -3.41 (Cap -4..+1) = AA |
What is the price of NTES shares?
As of May 19, 2026, the stock is trading at USD 113.61 with a total of 693,277 shares traded.
Over the past week, the price has changed by -2.24%, over one month by -3.89%, over three months by -4.13% and over the past year by -2.32%.
Over the past week, the price has changed by -2.24%, over one month by -3.89%, over three months by -4.13% and over the past year by -2.32%.
Is NTES a buy, sell or hold?
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
What are the forecasts/targets for the NTES price?
| Analysts Target Price | 163.2 | 43.6% |
NetEase (NTES) - Fundamental Data Overview
as of 15 May 2026
Market Cap CNY = 504.95b (74.16b USD * 6.8092 USD.CNY)P/E Trailing = 15.0726
P/E Forward = 12.6743
P/S = 0.6584
P/B = 3.1419
P/EG = 1.2821
Revenue TTM = 111.34b CNY
EBIT TTM = 33.71b CNY
EBITDA TTM = 36.18b CNY
Long Term Debt = 345.3m CNY (from capitalLeaseObligations, last fiscal year)
Short Term Debt = 6.39b CNY (from shortTermDebt, last quarter)
Debt = 6.39b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -160.65b CNY (recalculated: Debt 6.39b - CCE 167.04b)
Enterprise Value = 344.30b CNY (504.95b + Debt 6.39b - CCE 167.04b)
Interest Coverage Ratio = unknown (Ebit TTM 33.71b / Interest Expense TTM 0.0)
EV/FCF = 6.68x (Enterprise Value 344.30b / FCF TTM 51.51b)
FCF Yield = 14.96% (FCF TTM 51.51b / Enterprise Value 344.30b)
FCF Margin = 46.26% (FCF TTM 51.51b / Revenue TTM 111.34b)
Net Margin = 26.67% (Net Income TTM 29.70b / Revenue TTM 111.34b)
Gross Margin = 64.32% ((Revenue TTM 111.34b - Cost of Revenue TTM 39.73b) / Revenue TTM)
Gross Margin QoQ = 64.23% (prev 64.23%)
Tobins Q-Ratio = 1.55 (Enterprise Value 344.30b / Total Assets 221.56b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 6.39b)
Taxrate = 16.41% (1.25b / 7.62b)
NOPAT = 28.18b (EBIT 33.71b * (1 - 16.41%))
Current Ratio = 3.45 (Total Current Assets 180.73b / Total Current Liabilities 52.40b)
Debt / Equity = 0.04 (Debt 6.39b / totalStockholderEquity, last quarter 160.40b)
Debt / EBITDA = -4.44 (Net Debt -160.65b / EBITDA 36.18b)
Debt / FCF = -3.12 (Net Debt -160.65b / FCF TTM 51.51b)
Total Stockholder Equity = 156.66b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.06% (Net Income 29.70b / Total Assets 221.56b)
RoE = 18.96% (Net Income TTM 29.70b / Total Stockholder Equity 156.66b)
RoCE = 21.47% (EBIT 33.71b / Capital Employed (Equity 156.66b + L.T.Debt 345.3m))
RoIC = 17.21% (NOPAT 28.18b / Invested Capital 163.72b)
WACC = 7.65% (E(504.95b)/V(511.34b) * Re(7.75%) + D(6.39b)/V(511.34b) * Rd(0.0%) * (1-Tc(0.16)))
Discount Rate = 7.75% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: -16.30 | Cagr: -0.30%
[DCF] Terminal Value 82.73% ; FCFF base≈46.90b ; Y1≈57.86b ; Y5≈98.71b
[DCF] Fair Price = 3.11k (EV 1826.68b - Net Debt -160.65b = Equity 1987.33b / Shares 638.1m; r=7.65% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 69.13 | EPS CAGR: 9.84% | SUE: -1.93 | # QB: -1
Revenue Correlation: 82.16 | Revenue CAGR: 4.74% | SUE: -0.19 | # QB: 0
EPS current Quarter (2026-06-30): EPS=14.95 | Chg30d=-0.74% | Revisions=-20% | Analysts=8
EPS current Year (2026-12-31): EPS=62.75 | Chg30d=-0.48% | Revisions=-11% | GrowthEPS=+8.2% | GrowthRev=+7.2%
EPS next Year (2027-12-31): EPS=69.60 | Chg30d=-0.43% | Revisions=-11% | GrowthEPS=+10.9% | GrowthRev=+8.4%
[Analyst] Revisions Ratio: -20%