(NTES) NetEase - Ratings and Ratios
Games, Music, Learning, Content, Devices
Dividends
| Dividend Yield | 2.18% |
| Yield on Cost 5y | 3.84% |
| Yield CAGR 5y | -10.79% |
| Payout Consistency | 76.6% |
| Payout Ratio | 4.9% |
| Risk via 5d forecast | |
|---|---|
| Volatility | 37.7% |
| Value at Risk 5%th | 54.5% |
| Relative Tail Risk | -12.18% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.17 |
| Alpha | 38.33 |
| CAGR/Max DD | 0.83 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.341 |
| Beta | 0.529 |
| Beta Downside | 0.413 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.97% |
| Mean DD | 11.01% |
| Median DD | 9.02% |
Description: NTES NetEase December 02, 2025
NetEase, Inc. (NASDAQ: NTES) operates four primary segments-Games & Related Value-Added Services, Youdao (online intelligent learning), NetEase Cloud Music, and Innovative Businesses & Others-delivering mobile and PC games, licensed titles, live-streaming, game-themed merchandise, AI-enhanced education tools, and smart-device hardware across China and overseas markets.
In FY 2023 the company posted ¥ 84 billion (~US$ 11.8 bn) in revenue, with the Games segment contributing roughly 55 % and Cloud Music delivering a 12 % YoY increase driven by premium subscriptions. Youdao’s AI-powered language products saw a 28 % revenue jump, reflecting strong demand for generative-AI tools in education. Key macro drivers include China’s tightened gaming approval cycle, which compresses new-title pipelines, and the broader shift toward AI-augmented digital learning that is expanding total addressable market size at an estimated 15 % CAGR.
Strategically, NetEase is leveraging its AI capabilities (e.g., the “Confucius” large-language model) to cross-sell educational services while pursuing international game releases to diversify away from domestic regulatory risk. Monitoring the rollout of its next-gen AI tutoring suite and the performance of overseas game launches will be critical for assessing upside potential.
For a deeper quantitative dive into NetEase’s valuation metrics and scenario analysis, the ValueRay platform offers a structured framework worth exploring.
Piotroski VR‑10 (Strict, 0-10) 6.0
| 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 (-23.98b) to EBITDA (37.56b) ratio: -0.64 <= 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 (644.7m) change vs 12m ago -1.01% (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 -4.32 (EBITDA TTM 37.56b / Interest Expense TTM -8.18b) >= 6 (WARN >= 3) |
Altman Z'' 12.17
| (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) 0.18 = EBIT TTM 35.34b / Avg Total Assets 199.69b |
| (D) 5.04 = Book Value of Equity 270.03b / Total Liabilities 53.56b |
| Total Rating: 12.17 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 93.22
| 1. Piotroski 6.0pt |
| 2. FCF Yield 9.52% |
| 3. FCF Margin 41.93% |
| 4. Debt/Equity 0.05 |
| 5. Debt/Ebitda -0.64 |
| 6. ROIC - WACC (= 11.59)% |
| 7. RoE 24.67% |
| 8. Rev. Trend 86.32% |
| 9. EPS Trend 78.63% |
What is the price of NTES shares?
Over the past week, the price has changed by -0.46%, over one month by -1.87%, over three months by -8.57% and over the past year by +48.27%.
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 | 165.7 | 19.1% |
| Analysts Target Price | 165.7 | 19.1% |
| ValueRay Target Price | 156.1 | 12.2% |
NTES Fundamental Data Overview December 08, 2025
P/E Trailing = 17.5163
P/E Forward = 16.0
P/S = 0.804
P/B = 4.0057
P/EG = 1.215
Beta = 0.906
Revenue TTM = 111.83b CNY
EBIT TTM = 35.34b CNY
EBITDA TTM = 37.56b CNY
Long Term Debt = 428.0m CNY (from longTermDebt, last fiscal year)
Short Term Debt = 7.35b CNY (from shortTermDebt, last quarter)
Debt = 7.35b CNY (from shortLongTermDebtTotal, last quarter)
Net Debt = -23.98b CNY (from netDebt column, last quarter)
Enterprise Value = 492.54b CNY (634.28b + Debt 7.35b - CCE 149.09b)
Interest Coverage Ratio = -4.32 (Ebit TTM 35.34b / Interest Expense TTM -8.18b)
FCF Yield = 9.52% (FCF TTM 46.89b / Enterprise Value 492.54b)
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 = 2.30 (Enterprise Value 492.54b / Total Assets 214.49b)
Interest Expense / Debt = 8.56% (Interest Expense 629.3m / Debt 7.35b)
Taxrate = 13.02% (1.32b / 10.11b)
NOPAT = 30.74b (EBIT 35.34b * (1 - 13.02%))
Current Ratio = 3.42 (Total Current Assets 171.21b / Total Current Liabilities 50.09b)
Debt / Equity = 0.05 (Debt 7.35b / totalStockholderEquity, last quarter 156.26b)
Debt / EBITDA = -0.64 (Net Debt -23.98b / EBITDA 37.56b)
Debt / FCF = -0.51 (Net Debt -23.98b / 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 = 23.95% (EBIT 35.34b / Capital Employed (Equity 147.09b + L.T.Debt 428.0m))
RoIC = 19.54% (NOPAT 30.74b / Invested Capital 157.26b)
WACC = 7.95% (E(634.28b)/V(641.63b) * Re(7.96%) + D(7.35b)/V(641.63b) * Rd(8.56%) * (1-Tc(0.13)))
Discount Rate = 7.96% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -33.33 | Cagr: -0.40%
[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: 78.63 | EPS CAGR: 11.48% | SUE: -0.07 | # QB: 0
Revenue Correlation: 86.32 | Revenue CAGR: 4.12% | SUE: -0.03 | # QB: 0
EPS next Quarter (2026-03-31): EPS=15.50 | Chg30d=-0.625 | Revisions Net=-1 | Analysts=3
EPS next Year (2026-12-31): EPS=65.29 | Chg30d=-0.833 | Revisions Net=-6 | Growth EPS=+6.5% | Growth Revenue=+7.9%
Additional Sources for NTES Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle