(NTES) NetEase - Overview
Stock: Games, Music, Education, Cloud, Advertising
| Risk 5d forecast | |
|---|---|
| Volatility | 39.0% |
| Relative Tail Risk | -13.1% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.54 |
| Alpha | 8.14 |
| Character TTM | |
|---|---|
| Beta | 0.515 |
| Beta Downside | 0.324 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.97% |
| CAGR/Max DD | 0.43 |
EPS (Earnings per Share)
Revenue
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: 33.67b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA 2.72 > 1.0 |
| NWC/Revenue: 114.3% < 20% (prev 98.44%; Δ 15.88% < -1%) |
| CFO/TA 0.23 > 3% & CFO 50.39b > Net Income 33.67b |
| Net Debt (-45.13b) to EBITDA (37.96b): -1.19 < 3 |
| Current Ratio: 3.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (645.6m) vs 12m ago 0.68% < -2% |
| Gross Margin: 64.29% > 18% (prev 0.62%; Δ 6366 % > 0.5%) |
| Asset Turnover: 53.76% > 50% (prev 53.72%; Δ 0.04% > 0%) |
| Interest Coverage Ratio: -7.14 > 6 (EBITDA TTM 37.96b / Interest Expense TTM -5.01b) |
Altman Z''
| A: 0.58 (Total Current Assets 180.73b - Total Current Liabilities 52.40b) / Total Assets 221.56b |
| B: error (Retained Earnings missing) |
| C: 0.17 (EBIT TTM 35.72b / Avg Total Assets 208.77b) |
| D: 2.85 (Book Value of Equity 160.40b / Total Liabilities 56.35b) |
Beneish M -3.27
| DSRI: 0.88 (Receivables 5.34b/5.67b, Revenue 112.25b/105.30b) |
| GMI: 0.97 (GM 64.29% / 62.50%) |
| AQI: 0.84 (AQ_t 0.15 / AQ_t-1 0.17) |
| SGI: 1.07 (Revenue 112.25b / 105.30b) |
| TATA: -0.08 (NI 33.67b - CFO 50.39b) / TA 221.56b) |
| Beneish M-Score: -3.27 (Cap -4..+1) = AA |
What is the price of NTES shares?
Over the past week, the price has changed by -3.25%, over one month by -12.87%, over three months by -12.88% and over the past year by +17.18%.
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 | 166.4 | 39.2% |
| Analysts Target Price | 166.4 | 39.2% |
NTES Fundamental Data Overview February 14, 2026
P/E Forward = 12.4069
P/S = 0.6749
P/B = 3.2263
P/EG = 0.94
Revenue TTM = 112.25b USD
EBIT TTM = 35.72b USD
EBITDA TTM = 37.96b USD
Long Term Debt = unknown (0.0)
Short Term Debt = 6.39b USD (from shortTermDebt, last quarter)
Debt = 6.39b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -45.13b USD (from netDebt column, last quarter)
Enterprise Value = -84.64b USD (76.01b + Debt 6.39b - CCE 167.04b)
Interest Coverage Ratio = -7.14 (Ebit TTM 35.72b / Interest Expense TTM -5.01b)
EV/FCF = -1.74x (Enterprise Value -84.64b / FCF TTM 48.52b)
FCF Yield = -57.33% (FCF TTM 48.52b / Enterprise Value -84.64b)
FCF Margin = 43.23% (FCF TTM 48.52b / Revenue TTM 112.25b)
Net Margin = 30.00% (Net Income TTM 33.67b / Revenue TTM 112.25b)
Gross Margin = 64.29% ((Revenue TTM 112.25b - Cost of Revenue TTM 40.09b) / Revenue TTM)
Gross Margin QoQ = 64.23% (prev 64.10%)
Tobins Q-Ratio = -0.38 (set to none) (Enterprise Value -84.64b / Total Assets 221.56b)
Interest Expense / Debt = 9.85% (Interest Expense 629.3m / Debt 6.39b)
Taxrate = 16.41% (1.23b / 7.52b)
NOPAT = 29.86b (EBIT 35.72b * (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 = -1.19 (Net Debt -45.13b / EBITDA 37.96b)
Debt / FCF = -0.93 (Net Debt -45.13b / FCF TTM 48.52b)
Total Stockholder Equity = 152.52b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.13% (Net Income 33.67b / Total Assets 221.56b)
RoE = 22.08% (Net Income TTM 33.67b / Total Stockholder Equity 152.52b)
RoCE = 23.42% (EBIT 35.72b / Capital Employed (Equity 152.52b + L.T.Debt 0.0))
RoIC = 18.73% (NOPAT 29.86b / Invested Capital 159.38b)
WACC = 7.84% (E(76.01b)/V(82.40b) * Re(7.81%) + D(6.39b)/V(82.40b) * Rd(9.85%) * (1-Tc(0.16)))
Discount Rate = 7.81% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -33.33 | Cagr: -0.33%
[DCF Debug] Terminal Value 81.77% ; FCFF base≈44.15b ; Y1≈54.46b ; Y5≈92.75b
Fair Price DCF = 2628 (EV 1618.83b - Net Debt -45.13b = Equity 1663.97b / Shares 633.2m; r=7.84% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 69.13 | EPS CAGR: 9.84% | SUE: -2.12 | # QB: 0
Revenue Correlation: 84.66 | Revenue CAGR: 3.88% | SUE: -0.14 | # QB: 0
EPS next Quarter (2026-03-31): EPS=15.21 | Chg30d=-0.291 | Revisions Net=+0 | Analysts=6
EPS current Year (2026-12-31): EPS=63.70 | Chg30d=-1.593 | Revisions Net=+0 | Growth EPS=+9.8% | Growth Revenue=+7.3%
EPS next Year (2027-12-31): EPS=70.21 | Chg30d=-1.743 | Revisions Net=+0 | Growth EPS=+10.2% | Growth Revenue=+8.9%