NTES
NetEase Inc
$130.23
▼ 3.0%Updated Today 3:42 PM ET
NTES at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 71/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 1.6% over the last 12 months
Market Cap
$83.57B
P/E
16.64x
Forward P/E (est.)
15.81x
ROE
21.6%
Revenue Growth
6.6%
EPS Growth
5.3%
Profit Margin
29.8%
FCF Yield
4.9%
Debt / Equity
0.04x
ROIC
18.0%
Interest Coverage
—
Current Ratio
3.45x
Dividend Yield
2.4%
Implied Growth (rev. DCF)
0.5%
Rating Score
71/100
NetEase Inc (NTES) is a large-cap company in the Media industry, part of the Communication Services sector of the S&P 500, with a market value around $83.57B.
In its latest reported year it generated about $15.77B in revenue.
Our model rates NTES Favorable (71/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
62.7% average over the last 3 years
±3.2 pts around 59.7% across 10 years
grew in 9 of the last 9 year-over-year periods
positive in 9 of 9 years
18.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what NTES's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. NTES trades near $130.23, above its 50-day average ($119.78) and 200-day average ($129.41). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 57 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. NTES's is $3.67 (~2.8% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month NTES found buyers near $114.10 (support) and sellers near $131.24 (resistance); its 52-week range is $106.06–$159.55. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
6.5%
Revenue moved from $5.35B in 2016 to $15.77B in 2025, a 12.8% compound annual growth rate. The most recent year grew a steady 6.6% year over year. Slower, mature growth is common for established businesses.
Gross Margin
65.7%
Operating Margin
32.5%
Net Margin
29.8%
ROE
21.6%
NetEase Inc keeps about 29.8% of each sales dollar as net profit, with a 65.7% gross margin and 32.5% operating margin. Return on equity is 21.6% and return on invested capital about 18.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$58.63M
Net Debt
-$6.69B
Net cash position
Net Debt / EBITDA
-1.3x
Debt / Equity
0.04x
Leverage: debt-to-equity is 0.0x, with a current ratio of 3.5x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $58.63M of total debt against $6.74B of cash.
Operating CF
$7.26B
Free Cash Flow
$7.10B
FCF Margin
45.1%
In the latest year NetEase Inc produced about $7.26B of operating cash flow and $7.10B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.9% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
2.4%
Total paid (latest FY)
$1.98B
History on record
10 years
dividend uses 28% of free cash flow
total dividends increased 4 years in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
16.64x
P/S
5.04x
P/B
3.71x
EV / EBITDA
14.12x
NTES trades at 16.6x trailing earnings (about 15.8x on estimated forward earnings), 5.0x sales, and 3.7x book value. Reverse-engineering today's price implies the market expects roughly 0.5% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$44.31
Current price
$130.23
Starting FCF (latest 10-K)
$7.10B
Growth, years 1–5
6.6%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where NTES sits versus its Communication Services sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 44 Communication Services companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How NTES stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
In the Communication Services sector (95 S&P 500 companies), NTES ranks #8 of 95 by our overall rating. It trades at roughly in line versus the sector on earnings (16.6x P/E vs. 18.1x median) with a higher return on equity (21.6% vs. 14.9%) and faster revenue growth (6.6% vs. 5.3%).
P/E vs sector
16.6x
median 18.1x
ROE vs sector
21.6%
median 14.9%
Growth vs sector
6.6%
median 5.3%
Sector rank
#8
of 95 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Communication Services companies by sub-industry and size. Sector median is across all 95 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $130.23 today · expected CAGR -5% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $16.87B | $18.05B | $19.32B | $20.67B | $22.11B |
| Net income | $5.06B | $5.42B | $5.79B | $6.20B | $6.63B |
| EPS | $7.89 | $8.44 | $9.03 | $9.66 | $10.34 |
| Share price (low) | $78.87 | $84.39 | $90.30 | $96.62 | $103.39 |
| Share price (high) | $134.08 | $143.47 | $153.51 | $164.26 | $175.76 |
| CAGR (low–high) | -39% / 3% | -19% / 5% | -11% / 6% | -7% / 6% | -5% / 6% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for NTES:
- High net margins (29.8%) point to pricing power or efficiency.
- Strong return on equity (21.6%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.9%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Pays a 2.4% dividend on top of any price gains.
- Our model's overall read is Favorable (71/100).
The case against NTES:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: NetEase Inc is a large-cap communication services business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 16.6x earnings, which our model scores Favorable (71/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 34 Wall Street analysts covering NTES recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
NTES's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
NTES — frequently asked questions
Is NTES a good stock to buy?
We don't give buy or sell advice. Our model rates NetEase Inc Favorable (71/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is NTES's rating on The Stocks School?
NetEase Inc currently scores 71/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does NTES's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from NetEase Inc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for NTES calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this NTES analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell NTES. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.