NetEase Cloud Music Inc.

SHSC:9899 Stock Report

Market Cap: HK$24.4b

NetEase Cloud Music Valuation

Is 9899 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 9899 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9899 (HK$113.1) is trading above our estimate of fair value (HK$88.89)

Significantly Below Fair Value: 9899 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9899?

Key metric: As 9899 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9899. This is calculated by dividing 9899's market cap by their current earnings.
What is 9899's PE Ratio?
PE Ratio18.2x
EarningsCN¥1.25b
Market CapCN¥22.70b

Price to Earnings Ratio vs Peers

How does 9899's PE Ratio compare to its peers?

The above table shows the PE ratio for 9899 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.3x
136 China Ruyi Holdings
29.2x18.4%HK$26.3b
1060 Alibaba Pictures Group
51.7x45.0%HK$12.2b
1896 Maoyan Entertainment
11x13.6%HK$9.3b
3611 Huafang Group
5.5xn/aHK$2.3b
9899 NetEase Cloud Music
18.2x9.6%HK$24.4b

Price-To-Earnings vs Peers: 9899 is good value based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (30.6x).

Price to Earnings Ratio vs Industry

How does 9899'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
9899 18.2xIndustry Avg. 29.2xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 9899 is good value based on its Price-To-Earnings Ratio (18.2x) compared to the Asian Entertainment industry average (29x).

Price to Earnings Ratio vs Fair Ratio

What is 9899'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.

9899 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 9899's Price-To-Earnings Fair Ratio for valuation analysis.

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 9899 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$113.10
HK$127.66
+12.9%
15.7%HK$162.10HK$103.10n/a10
Nov ’25HK$124.90
HK$127.89
+2.4%
15.1%HK$164.72HK$104.77n/a12
Oct ’25HK$133.00
HK$123.25
-7.3%
12.3%HK$153.20HK$105.13n/a11
Sep ’25n/a
HK$122.49
0%
11.6%HK$153.03HK$105.02n/a11
Aug ’25n/a
HK$120.08
0%
12.5%HK$152.86HK$100.96n/a11
Jul ’25n/a
HK$119.86
0%
12.5%HK$152.60HK$100.79n/a11
Jun ’25n/a
HK$116.58
0%
12.4%HK$151.60HK$99.22n/a10
May ’25n/a
HK$115.88
0%
13.0%HK$152.22HK$99.63n/a10
Apr ’25n/a
HK$115.06
0%
12.6%HK$152.05HK$99.51n/a11
Mar ’25n/a
HK$110.15
0%
15.7%HK$152.99HK$92.90n/a8
Feb ’25HK$86.55
HK$103.13
+19.2%
14.9%HK$130.64HK$82.40n/a8
Jan ’25HK$89.75
HK$103.13
+14.9%
14.9%HK$130.64HK$82.40n/a8
Dec ’24HK$88.05
HK$103.13
+17.1%
14.9%HK$130.64HK$82.40n/a8
Nov ’24HK$89.25
HK$99.20
+11.1%
14.0%HK$129.40HK$81.62HK$124.908
Oct ’24HK$85.20
HK$101.59
+19.2%
14.7%HK$129.18HK$81.48HK$133.009
Sep ’24HK$79.35
HK$106.11
+33.7%
17.3%HK$144.81HK$82.37n/a11
Aug ’24HK$79.00
HK$111.04
+40.6%
13.6%HK$145.64HK$93.45n/a11
Jul ’24HK$83.00
HK$122.11
+47.1%
28.3%HK$224.47HK$87.99n/a12
Jun ’24HK$79.10
HK$122.11
+54.4%
28.3%HK$224.47HK$87.99n/a12
May ’24HK$72.85
HK$124.22
+70.5%
28.4%HK$229.12HK$89.82n/a12
Apr ’24HK$66.15
HK$124.22
+87.8%
28.4%HK$229.12HK$89.82n/a12
Mar ’24HK$83.00
HK$122.64
+47.8%
29.3%HK$229.67HK$90.03n/a12
Feb ’24HK$103.30
HK$124.81
+20.8%
29.6%HK$235.47HK$94.39HK$86.5511
Jan ’24HK$77.50
HK$119.67
+54.4%
31.1%HK$227.09HK$91.03HK$89.7510
Dec ’23HK$75.30
HK$119.20
+58.3%
30.8%HK$219.94HK$95.16HK$88.059
Nov ’23HK$54.80
HK$116.60
+112.8%
27.7%HK$204.33HK$94.77HK$89.259

Analyst Forecast: Target price is less than 20% higher than the current share price.

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