NetEase, Inc.

SEHK:9999 Stock Report

Market Cap: HK$458.9b

NetEase Valuation

Is 9999 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 9999 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9999 (HK$142.4) is trading below our estimate of fair value (HK$243.68)

Significantly Below Fair Value: 9999 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9999?

Key metric: As 9999 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9999. This is calculated by dividing 9999's market cap by their current earnings.
What is 9999's PE Ratio?
PE Ratio15.7x
EarningsCN¥27.51b
Market CapCN¥431.15b

Price to Earnings Ratio vs Peers

How does 9999's PE Ratio compare to its peers?

The above table shows the PE ratio for 9999 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.3x
3888 Kingsoft
32.3x21.3%HK$44.6b
777 NetDragon Websoft Holdings
10.9x32.1%HK$5.2b
434 Boyaa Interactive International
12.4xn/aHK$3.2b
799 IGG
5.7x-11.5%HK$4.4b
9999 NetEase
15.7x8.8%HK$458.9b

Price-To-Earnings vs Peers: 9999 is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

How does 9999's PE Ratio compare vs other companies in the HK Entertainment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
9999 15.7xIndustry Avg. 30.2xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 9999 is good value based on its Price-To-Earnings Ratio (15.7x) compared to the Asian Entertainment industry average (30.2x).

Price to Earnings Ratio vs Fair Ratio

What is 9999's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

9999 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: 9999 is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 9999 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$142.40
HK$173.88
+22.1%
13.7%HK$242.81HK$114.09n/a23
Dec ’25HK$134.40
HK$174.27
+29.7%
13.8%HK$244.79HK$115.03n/a23
Nov ’25HK$123.60
HK$179.05
+44.9%
14.5%HK$245.86HK$116.52n/a22
Oct ’25HK$150.50
HK$183.52
+21.9%
13.8%HK$249.48HK$118.23n/a23
Sep ’25HK$127.70
HK$184.41
+44.4%
13.5%HK$247.92HK$117.49n/a22
Aug ’25HK$143.40
HK$202.50
+41.2%
11.3%HK$245.88HK$133.96n/a22
Jul ’25HK$149.10
HK$203.22
+36.3%
10.9%HK$245.20HK$133.59n/a23
Jun ’25HK$137.60
HK$203.95
+48.2%
10.5%HK$246.53HK$134.31n/a24
May ’25HK$150.30
HK$209.22
+39.2%
9.7%HK$249.18HK$132.31n/a24
Apr ’25HK$162.80
HK$209.64
+28.8%
9.6%HK$247.72HK$132.43n/a24
Mar ’25HK$172.80
HK$210.60
+21.9%
10.2%HK$248.98HK$128.57n/a23
Feb ’25HK$155.80
HK$210.92
+35.4%
10.8%HK$270.25HK$129.35n/a24
Jan ’25HK$140.60
HK$209.01
+48.7%
13.4%HK$271.38HK$129.90n/a24
Dec ’24HK$175.80
HK$210.24
+19.6%
10.9%HK$268.98HK$129.78HK$134.4025
Nov ’24HK$167.60
HK$187.94
+12.1%
12.1%HK$235.41HK$109.14HK$123.6023
Oct ’24HK$159.50
HK$187.80
+17.7%
12.0%HK$236.02HK$109.43HK$150.5023
Sep ’24HK$163.80
HK$189.67
+15.8%
12.2%HK$237.22HK$107.67HK$127.7024
Aug ’24HK$171.60
HK$183.53
+6.9%
12.3%HK$239.66HK$109.11HK$143.4024
Jul ’24HK$152.60
HK$175.85
+15.2%
12.8%HK$237.47HK$108.11HK$149.1025
Jun ’24HK$131.70
HK$175.77
+33.5%
15.0%HK$241.95HK$87.76HK$137.6025
May ’24HK$138.60
HK$168.37
+21.5%
14.6%HK$216.97HK$90.27HK$150.3025
Apr ’24HK$138.00
HK$166.86
+20.9%
15.1%HK$218.55HK$90.93HK$162.8025
Mar ’24HK$131.30
HK$167.07
+27.2%
15.1%HK$218.77HK$91.02HK$172.8025
Feb ’24HK$143.60
HK$171.36
+19.3%
18.7%HK$230.27HK$95.95HK$155.8024
Jan ’24HK$114.50
HK$165.12
+44.2%
18.8%HK$222.46HK$92.69HK$140.6026
Dec ’23HK$107.80
HK$160.07
+48.5%
18.7%HK$215.09HK$89.62HK$175.8026

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 02:31
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

NetEase, Inc. is covered by 90 analysts. 34 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Sau Shing ChowABCI Securities Company Limited
Zixiao YangArete Research Services LLP
Ishan MajumdarBaptista Research