NetEase Inc.
HKG:9999 · SEHK · Gaming & Multimedia
NetEase, Inc. is one of China’s leading internet and gaming companies, with operations across online games, music streaming, intelligent learning, advertising technology, e-commerce, and digital content.
Current price
HK$197.20
▲ +HK$1.70 (0.87%) today
Share price
Live market dataET&A View
Last reviewed 15 September 2026
ET&A sees significant upside from the current price with an attractive risk/reward profile.
NetEase is one of China's highest-quality gaming businesses, supported by a deep catalogue of long-lived franchises, substantial internal development capabilities and an unusually strong balance sheet.
Why we like it
- Holds more cash than debt.
- Turns about 42% of its sales into spare cash.
- Very profitable — keeps about 40% of its sales as profit.
What worries us
Business Health
Is the business financially healthy?
Yes — very healthy
Earnings, margins, cash generation and the balance sheet stand out.
Overall
- Growth Good
Revenue
CN¥116.6bn · ↑ +7% last year
- Growth Excellent
Earnings
CN¥32.5bn · ↑ +14% last year
- Excellent
Margins
Keeps 40% of sales as operating profit
- Excellent
Cash generation
CN¥48.7bn spare cash a year · 42% of sales
- Excellent
Balance sheet
More cash than debt
- Yield Below Average
Dividend
1.5% yield · Pays out 42% of earnings · covered 2.4×
Investor View
More on NetEase Inc.
Open a section for the detail behind the quick view.
Our full viewET&A's complete thesis — why we hold the view we do.Members
NetEase is one of China's highest-quality gaming businesses, supported by a deep catalogue of long-lived franchises, substantial internal development capabilities and an unusually strong balance sheet. Operating…
The complete ET&A view
See our full reasoning, what could drive the shares higher or go wrong, our Fair Value and Preferred Entry, and how our view has changed.
- Our View in full
- What could drive it higher / go wrong
- Fair Value & Preferred Entry
- How our view has changed
What could drive it higher — and what could go wrongThe catalysts and risks we are watching.Members
Valuation discussionWhere today's price sits, and how it compares with the company's own history and its peers.Members
Financial and earnings trendsSales, margins, profit, earnings per share and cash, year by year.
Reported annual results, newest first · Market data. “Growth” is the change in sales on the year before.
| Year | Revenue | Growth | Operating margin | Net income | EPS | Free cash flow |
|---|---|---|---|---|---|---|
| FY2025 | CN¥112.6bn | +7.0% | 31.8% | CN¥33.8bn | CN¥10.48 | CN¥48.7bn |
| FY2024 | CN¥105.3bn | +1.8% | 28.1% | CN¥29.7bn | CN¥9.19 | CN¥37.5bn |
| FY2023 | CN¥103.5bn | +7.2% | 26.8% | CN¥29.4bn | CN¥9.05 | CN¥31.1bn |
| FY2022 | CN¥96.5bn | — | 20.3% | CN¥20.3bn | CN¥6.17 | CN¥25.1bn |
Who it suitsStrategy suitability and investment style.
Long-term growth investors
Also suits: Adventurous investors comfortable with big swings
How it compares with peersOther companies we cover in Gaming & Multimedia.
- Take-Two Interactive Software IncTTWO
ET&A sees significant upside from the current price with an attractive risk/reward profile.
Compare NetEase Inc. with any company → The model’s own peer calculations are in the Research View.
What the company doesThe full company profile.
NetEase, Inc. is one of China’s leading internet and gaming companies, with operations across online games, music streaming, intelligent learning, advertising technology, e-commerce, and digital content. The company is best known for developing and operating mobile and PC games in China and international markets, while also owning major platforms such as NetEase Cloud Music, Youdao, and Yanxuan.
NetEase’s strength comes from its gaming expertise, long-running titles, content ecosystem, and ability to build digital communities around entertainment and online services. Its core games business gives it exposure to China’s large gaming market and global game publishing, while NetEase Cloud Music and Youdao broaden the company’s reach into music, AI-enabled learning, advertising, and consumer lifestyle products. This makes NetEase an important Chinese technology company with long-term relevance across gaming, digital media, AI applications, and online consumer services.
Gaming & Multimedia · China
Research ViewOpen the full researchThe full researchFull financial statements, valuation multiples, historical data, forecasts, methodology, scoring calculations and the valuation model.OpenClose
For detailed analysis. Each section opens on its own.
Financial statementsEvery published figure with its source, the market snapshot and connected sheets.
Income
- Revenue
- CN¥116.6bnMarket data
- Gross profit
- CN¥78.3bnMarket data
- EBITDA
- CN¥43.3bnMarket data
- Operating profit (EBIT)
- CN¥35.8bnMarket data
- Net income
- CN¥32.5bnMarket data
- Earnings per share (EPS)
- CN¥11.34Market data
Growth
- Revenue growth, latest year
- Good7.0%Calculated
- Revenue growth, 3-year average
- Good5.3%Calculated
- Earnings growth, latest year
- Strong13.7%Calculated
- Earnings growth, 3-year average
- Excellent18.4%Calculated
- Revenue growth, latest quarter vs a year earlier
- 7.9%Market data
- Earnings growth, latest quarter vs a year earlier
- −18.7%Market data
Margins & returns
- Gross margin
- Excellent67.2%Market data
- EBITDA margin
- 37.1%Market data
- Operating margin
- Excellent40.2%Market data
- Net margin
- Excellent27.9%Market data
- Return on equity (ROE)
- Strong20.4%Market data
- Return on assets (ROA)
- 11.7%Market data
Cash flow
- Operating cash flow
- CN¥51.5bnMarket data
- Free cash flow
- CN¥48.7bnMarket data
- Free-cash-flow margin
- Excellent41.8%Calculated
- Free cash flow ÷ net income
- 1.5×Calculated
Balance sheet
- Cash
- CN¥175.4bnMarket data
- Total debt
- CN¥12.6bnMarket data
- Net cash (more cash than debt)
- CN¥162.8bnMarket data
- Net debt ÷ EBITDA
- Excellent−3.8×Calculated
- Debt ÷ equity
- 0.1×Market data
- Current ratio
- 3.5×Market data
Shares & dividends
- Shares outstanding
- 3.20bnMarket data
- Market capitalisation
- CN¥631.4bnMarket data
- Dividend per share
- CN¥4.01Market data
- Dividend yield
- Below Average1.5%Market data
- Payout ratio
- 41.9%Market data
- Market data — the live feed (Yahoo Finance)
- Calculated — worked out by ET&A from the figures shown, using the formulas in our methodology
Other published figures
- Price / Sales
- Members
- EV / EBITDA
- Members
- Price / Book
- Members
- Forward P/E
- Members
Market data
LiveAs of 14 October 2026
- P/E Ratio
- 17.39x
Valuation multiplesP/E, forward P/E, EV/EBITDA, Price/Sales and FCF yield — today and at Fair Value.Members
Standard ways of comparing the share price with the company’s earnings, sales and cash. Tap the “i” for what each one means.
| Measure | Today | Source |
|---|---|---|
| P/E | Members | |
| Forward P/E | Members | |
| EV/EBITDA | Members | |
| Price/Sales | Members | |
| FCF Yield | Members |
Valuation ratios are part of ET&A membership.
Other published measures
- Price / Book
- Members
Historical dataValuation history, how our view has changed, and the share-price history.
Share-price history
Use the 5Y and Max ranges on the price chart at the top of the page.
ForecastsWhat analysts expect — market consensus, not ET&A estimates.
Forecasts
- Forward EPS (next year, consensus)
- CN¥16.75Market data
- Expected EPS growth, next year
- Good6.2%Market data
- Expected revenue growth, next year
- 7.2%Market data
Forecasts are market consensus or calculated from forward EPS — not ET&A estimates, and they can be wrong.
MethodologyHow ET&A values a company and reaches a view.
How we value NetEase Inc.
- 1. The right method for the business. Each business is valued on the method that suits its economics — earnings for most companies, book value and returns for banks and insurers, cash flows or dividends where earnings mislead.
- 2. What the business deserves. ET&A builds a fair multiple from the company's own quality, sustainable growth, earnings predictability and risk. History, peers and the market are checked against it, but they don't set it.
- 3. Fair Value. The earnings (or other basis) per share multiplied by that fair multiple, cross-checked against independent methods.
- 4. Preferred Entry. A price below Fair Value that leaves room for the return ET&A requires for the company's risk.
- 5. Is it expensive? Today’s price is placed on ET&A’s Valuation Attractiveness scale — the same measure the ET&A Score uses. Cheap is the Preferred Entry; above Fair Value the shares are Expensive, and Very Expensive once they are more than 25% above it.
Powered by the ET&A Valuation FrameworkHow Fair Value & Preferred Entry work →
Read the full ET&A methodology →How we reach a view
The ET&A View combines our assessment of the business with where today’s price sits against our Preferred Entry and Fair Value. It is a considered judgement, not a mechanical score.
- Business quality
- Financial performance
- Growth outlook
- Debt and financial strength
- Valuation
- Risk
- What could drive it higher
- Buy
- ET&A sees significant upside from the current price with an attractive risk/reward profile.
- Accumulate
- ET&A likes the company but would prefer investors to build exposure gradually.
- Hold
- ET&A sees limited reason to buy aggressively or sell at the current price.
- Reduce
- ET&A believes the current valuation or risk profile makes a smaller position more appropriate.
- Sell
- ET&A believes the downside risk materially outweighs the potential return at the current price.
ET&A Score: ET&A's overall assessment of business quality, valuation, growth and risk, out of 10. It weighs business quality, financial strength, growth, valuation, risk, future prospects.
Powered by the ET&A Company Assessment FrameworkSee the full framework →
Scoring calculationsBehind the ET&A Score and the Business Health ratings.
Behind the ET&A Score
The automatic, rules-based scores that feed our research. The ET&A Score blends these with our own analysis of the business and its value. How the framework works →
ET&A Quant Score
Highly profitable · Strong balance sheet · Neutral
Context — not part of the score
- Valuation multiplesFairly priced
- Share-price steadinessHigh volatility
- IncomeLow yield
Valuation and share-price swings describe the shares, not the company, so they are judged in the ET&A Score and View instead.
- Annualised volatility
- Members
- Max drawdown (1y)
- Members
- 12-month return
- Members
- 3-month return
- Members
- P/E
- Members
- Price / Sales
- Members
- EV / EBITDA
- Members
- EBITDA margin
- Members
- Net debt / EBITDA
- Members
- Dividend yield
- Members
Based on the factors that could be measured (45% of the model).
Business Health ratings
Each area is scored from 0 to 10 on ET&A’s methodology scales — the same ones our research uses — then given a word: Excellent from 8.5, Strong from 7, Good from 5.5, Average from 4.5, Below Average from 3, Weak below 3. The overall answer is the average of the areas we could rate (at least three); the dividend isn’t part of it.
| Area | Based on | Score | Rating |
|---|---|---|---|
| Revenue |
Rated on 3-year average revenue growth, on ET&A's growth scale. | 5.6 / 10 | Good |
| Earnings |
Rated on 3-year average earnings growth, on ET&A's growth scale. | 8.7 / 10 | Excellent |
| Margins |
The average of operating and net margin, each scored on ET&A's margin scales. A negative margin scores 1 (Weak). | 9.3 / 10 | Excellent |
| Cash generation |
Free cash flow as a share of sales, on ET&A's cash-generation scale. | 9.5 / 10 | Excellent |
| Balance sheet |
Net debt ÷ EBITDA — roughly how many years of operating earnings would repay the debt — on ET&A's leverage scale. | 10.0 / 10 | Excellent |
| Dividend |
Dividend yield on ET&A's income scale. Not part of the overall health rating. | 4.1 / 10 | Below Average |
| Overall | Average of the 5 rated areas | 8.6 / 10 | Excellent |
ET&A's scales
Where each band starts on the scales above. They are fixed and identical for every company we cover; they come straight from ET&A’s methodology, so a company is judged the same way here as in our research.
| Measure | Excellent | Strong | Good | Average | Below Average | Weak |
|---|---|---|---|---|---|---|
| GrowthStructural Growth (Fundamental Conviction) | 18%+ | 10%+ | 5.0%+ | 1.7%+ | −2.5%+ | below −2.5% |
| Operating marginCompetitive Position (Fundamental Conviction) | 29%+ | 20%+ | 13%+ | 7.5%+ | 0%+ | below 0% (loss) |
| Net marginEarnings Durability (Fundamental Conviction) | 23%+ | 15%+ | 9.8%+ | 6.0%+ | 0%+ | below 0% (loss) |
| Free-cash-flow marginCapital Allocation (Fundamental Conviction) | 15%+ | 8.5%+ | 3.8%+ | 1.3%+ | −2.5%+ | below −2.5% |
| Net debt ÷ EBITDAStructural Risk (Fundamental Conviction) | net cash | ≤ 1.5× | ≤ 2.8× | ≤ 3.6× | ≤ 5.0× | above 5.0× |
| Return on equity (banks & insurers)Bank and insurer quality | 16%+ | 12%+ | 9.0%+ | 6.7%+ | 2.7%+ | below 2.7% |
| Equity ÷ assetsBank capital | 7.5%+ | 6.0%+ | 4.7%+ | 4.0%+ | any | — |
| Dividend yieldIncome factor (ET&A Quant Score) | 5.8%+ | 4.0%+ | 2.5%+ | 1.8%+ | 1.0%+ | below 1.0% |
Band floors: Excellent 8.5 · Strong 7 · Good 5.5 · Average 4.5 · Below Average 3 (scores out of 10). Utilities and property companies’ structural debt is scored 6.5, as in ET&A’s risk model.
Valuation model outputsFair Value, the 12-Month Price Target, Preferred Entry and the expected return — and how each was calculated.Members
Peer calculationsThe comparable companies the valuation model used, with their multiples and returns.Members
Detailed assumptionsEvery input the valuation model used, with its source.Members
Research notesNo research notes published yet.
No research notes have been published for NetEase Inc. yet.
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