NTES Relative Valuation
NTES's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NTES is overvalued; if below, it's undervalued.
Historical Valuation
NetEase Inc (NTES) is now in the Undervalued zone, suggesting that its current forward PS ratio of 5.32 is considered Undervalued compared with the five-year average of 15.11. The fair price of NetEase Inc (NTES) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 139.78 USD , NetEase Inc is Undervalued By Fair.
Relative Value
Fair Zone
+Inf-+Inf
Current Price：139.78
Fair
Undervalued
0.00
PE
1Y
3Y
5Y
Trailing
Forward
14.31
EV/EBITDA
NetEase Inc. (NTES) has a current EV/EBITDA of 14.31. The 5-year average EV/EBITDA is 12.90. The thresholds are as follows: Strongly Undervalued below 5.00, Undervalued between 5.00 and 8.95, Fairly Valued between 16.85 and 8.95, Overvalued between 16.85 and 20.79, and Strongly Overvalued above 20.79. The current Forward EV/EBITDA of 14.31 falls within the Historic Trend Line -Fairly Valued range.
12.56
EV/EBIT
NetEase Inc. (NTES) has a current EV/EBIT of 12.56. The 5-year average EV/EBIT is 14.30. The thresholds are as follows: Strongly Undervalued below 3.81, Undervalued between 3.81 and 9.06, Fairly Valued between 19.54 and 9.06, Overvalued between 19.54 and 24.78, and Strongly Overvalued above 24.78. The current Forward EV/EBIT of 12.56 falls within the Historic Trend Line -Fairly Valued range.
5.32
PS
NetEase Inc. (NTES) has a current PS of 5.32. The 5-year average PS is 4.22. The thresholds are as follows: Strongly Undervalued below 2.68, Undervalued between 2.68 and 3.45, Fairly Valued between 4.99 and 3.45, Overvalued between 4.99 and 5.76, and Strongly Overvalued above 5.76. The current Forward PS of 5.32 falls within the Overvalued range.
13.31
P/OCF
NetEase Inc. (NTES) has a current P/OCF of 13.31. The 5-year average P/OCF is 14.71. The thresholds are as follows: Strongly Undervalued below 7.70, Undervalued between 7.70 and 11.20, Fairly Valued between 18.21 and 11.20, Overvalued between 18.21 and 21.72, and Strongly Overvalued above 21.72. The current Forward P/OCF of 13.31 falls within the Historic Trend Line -Fairly Valued range.
17.58
P/FCF
NetEase Inc. (NTES) has a current P/FCF of 17.58. The 5-year average P/FCF is 16.55. The thresholds are as follows: Strongly Undervalued below 8.17, Undervalued between 8.17 and 12.36, Fairly Valued between 20.74 and 12.36, Overvalued between 20.74 and 24.93, and Strongly Overvalued above 24.93. The current Forward P/FCF of 17.58 falls within the Historic Trend Line -Fairly Valued range.
NetEase Inc (NTES) has a current Price-to-Book (P/B) ratio of 3.86. Compared to its 3-year average P/B ratio of 3.40 , the current P/B ratio is approximately 13.71% higher. Relative to its 5-year average P/B ratio of 2.40, the current P/B ratio is about 61.10% higher. NetEase Inc (NTES) has a Forward Free Cash Flow (FCF) yield of approximately 7.60%. Compared to its 3-year average FCF yield of 7.54%, the current FCF yield is approximately 0.82% lower. Relative to its 5-year average FCF yield of 6.84% , the current FCF yield is about 11.08% lower.
3.86
P/B
Median3y
3.40
Median5y
2.40
7.60
FCF Yield
Median3y
7.54
Median5y
6.84
Competitors Valuation Multiple
The average P/S ratio for NTES's competitors is 22.47, providing a benchmark for relative valuation. NetEase Inc Corp (NTES) exhibits a P/S ratio of 5.32, which is -76.34% above the industry average. Given its robust revenue growth of 8.28%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NTES increased by 58.56% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.98 to 16.76.
The secondary factor is the Margin Expansion, contributed 21.18%to the performance.
Overall, the performance of NTES in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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