An Intrinsic Calculation For NetEase, Inc. (NASDAQ:NTES) Suggests It's 43% Undervalued
Does the May share price for NetEase, Inc. ( NASDAQ:NTES ) reflect what it's really worth? Today, we will estimate the...
Has the U.S. Interactive Home Entertainment Industry valuation changed over the past few years?
|Sun, 29 May 2022||US$268.4b||US$56.8b||US$1.9b||21.4x|
|Tue, 26 Apr 2022||US$265.6b||US$55.4b||US$2.6b||22.5x|
|Thu, 24 Mar 2022||US$307.3b||US$56.0b||US$2.6b||23.2x|
|Sat, 19 Feb 2022||US$314.0b||US$53.5b||US$2.3b||23.4x|
|Mon, 17 Jan 2022||US$351.5b||US$53.2b||US$2.5b||19.3x|
|Wed, 15 Dec 2021||US$393.4b||US$53.1b||US$2.5b||20.7x|
|Fri, 12 Nov 2021||US$483.2b||US$50.7b||US$3.0b||36x|
|Sun, 10 Oct 2021||US$450.8b||US$49.2b||US$2.7b||29.4x|
|Tue, 07 Sep 2021||US$477.2b||US$48.9b||US$2.7b||21.5x|
|Thu, 05 Aug 2021||US$434.6b||US$48.5b||US$2.7b||25.2x|
|Sun, 09 May 2021||US$447.5b||US$44.9b||US$2.8b||34.8x|
|Wed, 10 Feb 2021||US$398.1b||US$41.1b||US$3.3b||43.8x|
|Tue, 03 Nov 2020||US$283.3b||US$37.6b||US$4.2b||28.8x|
|Fri, 07 Aug 2020||US$280.7b||US$34.8b||US$5.1b||29.7x|
|Thu, 30 Apr 2020||US$188.9b||US$32.1b||US$5.9b||18.5x|
|Sun, 02 Feb 2020||US$172.6b||US$30.8b||US$5.1b||24.3x|
|Wed, 06 Nov 2019||US$153.1b||US$28.8b||US$5.2b||19.2x|
|Sat, 10 Aug 2019||US$142.8b||US$27.9b||US$4.1b||16.1x|
How does U.S. Interactive Home Entertainment compare with similar industries?
|Interactive Home Entertainment||4.03%|
|Movies and Entertainment||5.45%|
Which companies have driven the market over the last 7 days?
Shopee ASEAN and Taiwan saw meaningful improvement in adjusted EBITDA loss due to improved unit economics and is on track to achieve break-even by end 2022. Shopee Brazil continues to see strong momentum in terms of monthly active users, downloads and time spent, and unit economics improved as order growth continued. Garena remains focused on user engagement of Free Fire, which is showing signs of stabilization as the weekly revenues for Free Fire may have bottomed in April. SeaMoney continues to gain traction as SeaBank in Indonesia sees strong momentum in downloads and monthly active users. My target price for Sea is $173, implying an upside of 116%.
Electronic Arts has seen a significant rebound in net revenue in FY22. While sales of the FIFA gaming title are likely to increase ahead of the upcoming World Cup, the retiring of the partnership with FIFA thereafter might concern investors. While revenue has performed strongly, earnings may need to rise further to justify current levels.
Take-Two Interactive Software
HUYA is one of the leading live streaming platforms in China. As the No.1 streaming platform for gaming, HUYA regularly hosts e-Sports event organizers and collaborates with major game developers. HUYA stock is down 41% YTD and 90% from February 2021 levels. The company is now trading at -$650 million enterprise value. I analyse HUYA’s fundamentals and structure a residual earnings framework to value the company - based on analyst EPS consensus, no TV growth and 10% WACC. Based on my calculation, I give HUYA a Buy/high risk recommendation and a base-case target price of $5.31/share.
DouYu International Holdings
Activision Blizzard is a fundamentally strong company with great brands. But in 2022, it faces tough comparables and will not report great results. There is a good chance that the takeover by Microsoft will close, which would result in a very solid 20%+ gain, although that might take as much as a year.
Bilibili is a leading video streaming platform in China, and arguably the country's go-to video platform for the young generation. Bilibili has enjoyed super-charged growth rates of 35% CAGR for multiple years, reaching MAU of 272 million in Q4. I value Bilibili based on a Residual Earnings framework and calculate a base-case price-target of $33.07 / share, undervaluation of 40%. The current negative sentiment around growth- and China-equities (BILI stock is down 85% from ATH) may give buyers a highly favorable risk/reward ratio.
Fujian Blue Hat Interactive Entertainment Technology
Golden Matrix Group