NetEase, Inc (9999) Fair Value & Analysis

Communication Services · HK · Market cap HK$672B

NI NetEase, Inc 9999 · HK

PriceHK$203.00

Fair ValueHK$192.74

Upside-5.1%

Quality70/100

Watch NetEase, Inc for free, get notified when fair value or trend changes. Watch for free

Healthy Growth

Highly profitable · 29.8% net margin

Low debt · generates free cash flow

2.06% dividend yield

Ranks above peers (9/15)

Wide moat 84/100

Evidence: High Range HK$148.08 – HK$493.94 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from HK$168.39 to HK$192.74 (+14.5%) since Jul 12, 2026. Share price −1.1% over the past month.

A solid business, currently priced close to our fair value.

What matters now

The model range is unusually wide (HK$148.08 to HK$493.94). The outcome hinges heavily on assumptions, so read the point estimate with caution.
The price sits close to our fair value, market and models broadly agree here, little valuation tension.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range HK$77.52 – HK$241.56 · fair‑value band HK$148.08 – HK$493.94 · the HK$203.00 price screens above the HK$192.74 fair value. Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

NetEase, Inc (9999) currently trades at HK$203.00, while our model-based Fair Value estimate is HK$192.74, implying the stock looks roughly 5.1% fairly valued today. We read business quality at 70/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, NetEase, Inc generated revenue of HK$114B at a net margin of 29.8%. Revenue grew 6.1% year over year. It earns a return on equity of 22.1%. The balance sheet holds a net cash position of HK$45.1B. Fundamentals as of Jul 16, 2026

Our scenario range runs from HK$148.08 (bear case) to HK$493.94 (bull case); at HK$203.00, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -19% fair-value upside, at -5%, 9999 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence

Highest evidence

Growth DCF HK$270.50 HK$508.32 HK$1,010 80

Residual Income HK$72.19 HK$93.84 HK$404.31 76

Rev-Margin DCF HK$137.14 HK$229.67 HK$395.62 74

All 26 models by family

DCF Models

FCF DCF HK$286.03 HK$451.34 HK$991.87 38

Owner Earnings HK$197.55 HK$441.28 HK$975.81 31

5Y Revenue Exit HK$137.14 HK$202.39 HK$335.92 39

5Y EBITDA Exit HK$175.44 HK$280.28 HK$483.80 41

5Y P/E Exit HK$208.01 HK$422.62 HK$710.47 38

10Y Revenue Exit HK$177.61 HK$313.52 HK$387.44 36

10Y EBITDA Exit HK$209.03 HK$397.11 HK$721.11 37

10Y P/E Exit HK$233.27 HK$468.18 HK$859.93 35

Earnings-Based

Graham-Dodd HK$71.71 HK$500.11 HK$701.82 54

Lynch FV HK$181.75 HK$259.64 HK$337.53 50

PEG = 1.0 HK$181.75 HK$259.64 HK$337.53 46

EPV HK$109.19 HK$125.61 HK$140.22 59

Dividend Discount

Gordon GGM HK$40.47 HK$88.35 HK$148.65 70

DDM Multi-Stage HK$40.47 HK$72.37 HK$92.07 61

Multiples

P/E Multiple HK$158.19 HK$210.92 HK$263.65 63

P/S Multiple HK$65.97 HK$87.95 HK$109.94 58

P/B Multiple HK$112.71 HK$150.28 HK$187.85 55

EV/EBIT HK$167.21 HK$217.58 HK$267.96 53

EV/EBITDA HK$131.90 HK$170.50 HK$209.11 54

EV/Revenue HK$77.66 HK$104.04 HK$130.43 43

Asset-Based

NCAV (Graham) HK$25.05 HK$33.56 HK$50.09 50

Growth DCF

Growth DCF HK$270.50 HK$508.32 HK$1,010 80

Rev-Margin DCF HK$137.14 HK$229.67 HK$395.62 74

Economic Profit

Residual Income HK$72.19 HK$93.84 HK$404.31 76

ROIC Compounder HK$137.80 HK$200.66 HK$292.18 72

Growth Earnings

Growth-Adj P/E HK$229.90 HK$328.43 HK$426.95 68

Widest divergence: DCF Models (HK$397.11) versus Asset-Based (HK$33.56). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) HK$114B

Revenue growth (YoY) +6.1%

Net margin 29.8%

Return on equity 22.1%

Free cash flow HK$48.4B FY2025

P/E ratio 15.4

More key figures

Operating margin 41.4%

EPS (TTM) HK$11.59

Dividend yield 2.2%

EPS growth (YoY) +3.1%

Net cash HK$45.1B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 76 · Market factors (momentum, volatility) 50

Profitability 71

Margins and returns on capital today

Quality Growth 56

Are margins and returns improving?

Cashflow 91

Earnings quality: real cash, not paper profit

Fin. Strength 83

Balance sheet, leverage, solvency risk

Investment 60

Disciplined investing over empire-building

Low Volatility 67

Calm price path (market factor)

Momentum 45

Price trend over the last 3–12 months (market factor)

52W Momentum 38

Distance to the 52-week high (market factor)

Net Issuance 86

Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Full company description

NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally. The company operates through Games and Related Value-Added Services; Youdao; NetEase Cloud Music; and Innovative Businesses and Others segments. It develops and operates mobile and PC games; and offers games licensed from other developers. The company also provides live streaming service, and other related or ancillary value-added services related to games, such as the sale of game-themed merchandise. In addition, it offers digital content services with interactive learning features, including Youdao Lingshi and Youdao Literature; STEAM courses consisting computer coding courses and other STEAM courses; and adult courses, such as China University massive open online course. Further, the company provides Youdao Dictionary, an online language tool; Confucius, a large language model for the education sector; Hi Echo, an AI-driven virtual English-speaking tutor; Mr. P AI Tutor, a conversation-based tool; Youdao Desktop Translation, a desktop dictionary tool; U-Dictionary, an online dictionary and translation app; iRecord, an audio transcription tool; LectMate, an interpretation software for study-abroad lecture scenarios; iArch, an AI home design software; Baby Genius, an AI baby generator; and One Translate Translator, a translation tool for travelers. It also offers online marketing services consisting of performance-based advertising services, and global marketing and promotion services through banners, text links, videos, logos, buttons, and rich media. Additionally, the company develops and offers smart devices, including Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. NetEase, Inc. was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. The company was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

NetEase, Inc reported revenue of HK$113B in FY2025 versus HK$87.6B in FY2021, a compound +6.5%/yr. Reported net income was HK$33.8B in FY2025, compounding +19.0%/yr from FY2021.

Growth Quality 88/100

Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Latest Revenue (FY 2025)

HK$113B

Latest YoY

+7.0%

Avg. growth/yr (3Y)

+5.3%

Avg. growth/yr (5Y)

+8.9%

Avg. growth/yr (26Y)

+40.7%

Revenue +6.5%/yr

FY21 HK$87.6B

FY22 HK$96.5B

FY23 HK$103B

FY24 HK$105B

FY25 HK$113B

Net income +19.0%/yr

FY21 HK$16.9B

FY22 HK$20.3B

FY23 HK$29.4B

FY24 HK$29.7B

FY25 HK$33.8B

Watch 9999: get an alert when its fair value changes →

Run the numbers yourself: free valuation calculators

DCF Calculator Graham Number Peter Lynch Formula DDM Calculator Fama-French Model Intrinsic Value

Share or link this analysis

𝕏 Post WhatsApp LinkedIn Reddit

For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

NetEase, Inc · Fair Value
HK$192.74 −5%Fair Value
Calculator →

<a href="https://www.fairvalue-calculator.com/stock/9999" target="_blank" rel="nofollow noopener" style="display:inline-flex;align-items:center;gap:12px;box-sizing:border-box;font-family:system-ui,-apple-system,Segoe UI,Roboto,sans-serif;text-decoration:none;background:#0f1814;color:#eaf2ed;border:1px solid #2a3a30;border-radius:12px;padding:12px 16px;max-width:360px"><span style="line-height:1.35"><span style="font-size:12px;color:#9fb0a8">NetEase, Inc · Fair Value</span><br><b style="font-size:20px">HK$192.74</b> <span style="color:#e0816f;font-weight:700;font-size:14px">−5%</span></span><span style="font-size:11px;color:#7BB290;font-weight:700;margin-left:auto;text-align:right;line-height:1.3">Fair&nbsp;Value<br>Calculator&nbsp;→</span></a>

Cite: Fair Value Calculator (2026). "NetEase, Inc Fair Value". https://www.fairvalue-calculator.com/stock/9999

Peer Group

Electronic Gaming & Multimedia · 152 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 70 · Top 25%

Fair Value upside −5% · Above median

Return on equity (TTM) 22% · Top 25%

Return on assets 11% · Top 25%

Net margin (TTM) 30% · Top 25%

Operating margin (TTM) 41% · Top 25%

Revenue growth 6% · Above median

Dividend yield (TTM) 2.1% · Above median

Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper

P/E (TTM) 17.2× · Pricier than median

P/B 4.19× · Pricier than 75% of peers

P/S (TTM) 5.87× · Pricier than 75% of peers

P/FCF 1.8× · Pricier than median

EV/EBITDA 15.4× · Pricier than median

PEG 1.40× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 27 · sector 21

FUTURE 31 · sector 10

PAST 89 · sector 11

HEALTH 100 · sector 99

DIVIDEND 41 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock	Price	Fair Value	vs Fair Value
Electronic Arts Inc EA	$207.27	$76.57	-63%
Take-Two Interactive Software, Inc TTWO	$237.04	$60.45	-74%
Roblox Corporation RBLX	$57.07	$21.20	-63%
Zhejiang Century Huatong Group 002602	¥14.04	¥14.68	+5%
KRAFTON, Inc 259960	240,500 KRW	395,557 KRW	+64%
Kunlun Tech Co 300418	¥44.61	¥6.87	-85%
Giant Network Group 002558	¥29.98	¥15.69	-48%
International Games System Co 3293	704.00 TWD	568.16 TWD	-19%
37 Interactive Entertainment Network Technology Group 002555	¥19.02	¥22.29	+17%
Kingnet Network Co 002517	¥16.69	¥15.15	-9%

Compare NetEase, Inc with another stock

Price, fair value, quality and upside side by side.

First stock

Second stock

Free, no sign-up

Explore undervalued stocks

More undervalued Communication Services stocks →

All undervalued stocks Technology Financial Services Healthcare Consumer Cyclical Consumer Defensive Communication Services Industrials Energy Basic Materials Real Estate Utilities Deeply Undervalued Stocks Undervalued Blue-Chip Stocks Undervalued Small-Cap Stocks Undervalued Dividend Stocks

Frequently asked questions

Is NetEase, Inc (9999) overvalued or undervalued?

As of Jul 16, 2026, our model estimates a fair value of HK$192.74 versus a price of HK$203.00, about −5% (fairly valued).

What is the fair value of 9999?

Our model-based fair value for NetEase, Inc is HK$192.74 (as of Jul 16, 2026), built from audited fundamentals. The current price is HK$203.00.

What is the quality score of 9999?

NetEase, Inc has a Quality Score of 70/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.

What is the revenue of NetEase, Inc (9999)?

NetEase, Inc reported trailing-twelve-month revenue of about HK$114B (latest available figure, as of Jul 16, 2026).

What is the net profit margin of 9999?

The net profit margin of NetEase, Inc is about 29.8%, meaning it keeps roughly 29.8% of revenue as net income. Based on the latest reported figures.

Does NetEase, Inc pay a dividend?

NetEase, Inc currently shows a dividend yield of about 2.16% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track NetEase, Inc and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.