NetEase Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: NTES ($91.35) is trading below our estimate of fair value ($154.27)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NTES key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.1x
Enterprise Value/EBITDA10.7x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NTES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.7x
ATVI Activision Blizzard
34.3x5.7%US$74.3b
EA Electronic Arts
29.3x7.8%US$38.9b
SCPL SciPlay
20.9x8.7%US$2.9b
PLTK Playtika Holding
14.3x10.5%US$3.0b
NTES NetEase
14.1x7.6%US$59.7b

Price-To-Earnings vs Peers: NTES is good value based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

How does NTES's PE Ratio compare vs other companies in the US Entertainment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.6%
n/an/an/a
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Price-To-Earnings vs Industry: NTES is good value based on its Price-To-Earnings Ratio (14.1x) compared to the US Entertainment industry average (14.3x).


Price to Earnings Ratio vs Fair Ratio

What is NTES'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.

NTES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.1x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: NTES is good value based on its Price-To-Earnings Ratio (14.1x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


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 NTES forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$91.35
US$128.00
+40.1%
10.5%US$158.08US$99.89n/a32
Jul ’25US$96.46
US$127.73
+32.4%
10.6%US$157.72US$99.65n/a32
Jun ’25US$89.03
US$129.24
+45.2%
9.6%US$158.21US$100.08n/a31
May ’25US$94.02
US$133.01
+41.5%
7.1%US$157.08US$110.16n/a31
Apr ’25US$98.71
US$134.89
+36.7%
6.6%US$157.30US$110.32n/a31
Mar ’25US$110.49
US$135.73
+22.8%
6.4%US$158.00US$117.15n/a30
Feb ’25US$100.90
US$135.20
+34.0%
7.4%US$168.73US$117.42n/a30
Jan ’25US$93.16
US$134.85
+44.7%
10.0%US$169.61US$87.85n/a30
Dec ’24US$109.38
US$135.89
+24.2%
7.9%US$169.32US$114.81n/a31
Nov ’24US$108.35
US$124.65
+15.0%
7.9%US$149.87US$109.58n/a30
Oct ’24US$100.16
US$123.56
+23.4%
7.4%US$148.84US$108.49n/a30
Sep ’24US$104.45
US$124.08
+18.8%
7.7%US$149.10US$107.58n/a31
Aug ’24US$109.67
US$118.76
+8.3%
10.1%US$150.79US$93.52n/a31
Jul ’24US$96.69
US$114.45
+18.4%
9.7%US$150.72US$93.48US$96.4631
Jun ’24US$85.78
US$114.36
+33.3%
11.5%US$152.91US$88.79US$89.0329
May ’24US$89.03
US$108.86
+22.3%
10.9%US$139.60US$78.34US$94.0229
Apr ’24US$88.44
US$108.49
+22.7%
11.2%US$140.47US$78.83US$98.7129
Mar ’24US$81.52
US$109.23
+34.0%
11.8%US$140.76US$78.99US$110.4930
Feb ’24US$91.77
US$112.03
+22.1%
12.8%US$146.53US$84.45US$100.9028
Jan ’24US$72.63
US$108.30
+49.1%
13.8%US$141.81US$77.00US$93.1628
Dec ’23US$68.25
US$105.15
+54.1%
13.7%US$137.29US$74.54US$109.3826
Nov ’23US$59.57
US$112.22
+88.4%
12.9%US$135.95US$74.38US$108.3526
Oct ’23US$75.60
US$119.04
+57.5%
9.0%US$138.22US$87.94US$100.1626
Sep ’23US$88.13
US$123.45
+40.1%
7.5%US$142.47US$108.56US$104.4526
Aug ’23US$91.54
US$127.72
+39.5%
6.7%US$148.50US$111.44US$109.6726
Jul ’23US$93.47
US$128.31
+37.3%
6.7%US$148.00US$112.34US$96.6926

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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