Is NetEase or Verizon Communications more undervalued?

As of Oct 29, 2026, NetEase is at +127.5% to fair value and Verizon Communications at +60.1%. NetEase is the more undervalued of the two. Model-based estimate, not financial advice.

Which has higher quality, NetEase or Verizon Communications?

NetEase has a quality score of 80/100 and Verizon Communications 57/100. NetEase leads on quality.

STOCK COMPARISON

NetEase vs Verizon Communications: Fair Value & Quality

Both stocks run through our valuation models. Here is how NetEase (NTES) and Verizon Communications (VZ) compare, as of Oct 29, 2026.

As of Oct 29, 2026, Fair Value Calculator sees NetEase as the more attractively valued of the two: NetEase trades at $112 versus a fair value of $256 (+127.5%), while Verizon Communications trades at $43.18 versus $69.14 (+60.1%).

NetEase

NTES · USD · Communication Services

+127.5%

upside to fair value

undervalued

Price$112

Fair Value$256

Quality80/100

Fair ValueQualityUptrend

Verizon Communications

VZ · USD · Communication Services

+60.1%

upside to fair value

undervalued

Price$43.18

Fair Value$69.14

Quality57/100

Meets all three buy rules

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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

NetEaseVerizon Communications

Valuation

15.6×P/E (TTM)11.0×

10.4×Forward P/E (FY2027)8.1×

17.6×Median P/E at FY-end (ex one-offs where documented)10.1×

4.57×P/S (TTM)1.29×

3.32×P/B1.72×

11.1×EV/EBITDA5.9×

1.16×PEG0.78×

+127.5%Fair value upside+60.1%

2.7%Dividend yield1.6%

$3.04Dividend per share$0.69

Profitability

40.2%Operating margin25.2%

1.61×EBIT margin trend (5Y)0.91×

20.4%Return on equity15.8%

15.2%Return on assets4.3%

Growth

7.9%Revenue growth (YoY)1.5%

5.3%Avg. growth/yr (3Y)0.3%

8.9%Avg. growth/yr (5Y)1.5%

+18.6%Value creation/yr−0.1%

Balance & size

16.7×Interest coverage (EBIT/interest)4.4×

0.00×Debt / equity1.34×

$80BMarket cap$180B

healthyGrowth qualitymixed

NetEase, median P/E at fiscal year-end, 6 fiscal years (2020 to 2025), reported earnings: 17.6. Verizon Communications, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 6 of the years ex one-offs: 10.1.

Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

NetEase leads: 11 to 5 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

NetEase Verizon Communications

ProfitabilityHow much profit the company makes from its sales and capital

Quality GrowthAre margins and returns getting better?

CashflowDo the profits arrive as real cash?

Financial strengthDebt, balance sheet and risk of trouble

InvestmentDoes it invest with discipline instead of growing at any price?

Low VolatilityHow calm the share price moves, does not count

MomentumPrice trend of the last 3 to 12 months, does not count

Near the 52-week highDistance to the 52-week high, does not count

New sharesBuys back shares or issues new ones?

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model family	NetEasePrice $112	Verizon CommunicationsPrice $43.18
DCF Models	+179.0%above the price$314	+61.1%above the price$69.58
Earnings-Based	+73.1%above the price$195	0%close to the price$43.21
Dividend Discount	−48.1%below the price$58.38	+20.2%above the price$51.92
Multiples	+8.7%close to the price$122	+49.6%above the price$64.62
Asset-Based	−75.0%below the price$28.06	−73.4%below the price$11.50
Growth DCF	+154.1%above the price$286	+82.1%above the price$78.64
Economic Profit	−4.2%close to the price$108	0%close to the price$43.06
Growth Earnings	+127.5%above the price$256	+75.3%above the price$75.70
Matching families	8 of 8
Minimum	−75.0%below the price$28.06	−73.4%below the price$11.50
Maximum	+179.0%above the price$314	+82.1%above the price$78.64
Median	+40.9%above the price$158	+34.9%above the price$58.27
Geometric mean	+18.0%above the price$133	+11.9%close to the price$48.32
Ahead family by family	4 of 8	4 of 8

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 8 of 8), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: NetEase is ahead in 4 of 8 shared families, Verizon Communications in 4.

NetEase: 7 of 26 models see the stock below the current price.

Verizon Communications: 4 of 25 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

NetEase

Price $112

Fair Value $256

Bear $155Bull $333

Verizon Communications

Price $43.18

Fair Value $69.14

Bear $36.13Bull $98.41

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

NetEase · Communication Services

Quality score80 · Top 25%

Fair value upside+127.5% · Top 25%

Verizon Communications · Communication Services

Quality score57 · above median

Fair value upside+60.1% · above median

Bottom line

NetEase has the higher quality score (80/100).

Open NetEase live analysis →

NetEase · Verizon Communications

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.