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NetEase Inc (NTES) fair value: what the stock is really worth

We calculate from audited financials what NetEase Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? Yes
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Communication Services · US · ISIN US64110W1027

NI NetEase Inc logo Broad data Sep 17, 2026

NetEase Inc

NTES · US

Strongly undervaluedStrong Fair Value upside with high Quality.

Fair value $254.36 · Strongly undervalued (+119%)
Quality 81/100
Healthy Growth (revenue 5y +8.9 %/yr)
Highly profitable · 29.8% net margin (TTM)
Low debt · generates free cash flow
·2.61% dividend yield
Ranks above peers (9/15)
Wide moat 84/100

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$156.20 $50.57 Fair Value $254.36 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 17, 2026.

How to read this chart

60‑month range $50.57 – $156.20 · fair‑value band $149.72 – $330.67 · the $116.19 price screens below the $254.36 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 17, 2026.

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Company profile

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.

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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.

Stock analysis

NetEase Inc (NTES) currently trades at $116.19, while our model-based Fair Value estimate is $254.36, implying the stock looks roughly 54.3% undervalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of $1,842 per share, and 26 of the 26 models we run sit above the $116.19 price.

Bear case: the Asset-Based group reads lowest at $167.85, and 0 of the 26 models stay below the price. Evidence for this calculation is high.

Scenario range: $149.72 (bear) to $330.67 (bull), the price of $116.19 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 81/100 (high quality), in the Communication Services sector.

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

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

Key figures

Market cap $84.7B · P/E ratio 14.8 · P/S ratio 4.44 · EPS (TTM) $7.84 · Dividend yield 2.6% · Net margin 30.0% · Return on equity 22.1% · Return on assets (EBIT) 13.6%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 57 out of 100 (medium confidence).

What moves the price

The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.

The share trades about 26% below its 52-week high and 10% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Communication Services peers we cover trades at 28% fair-value upside, at 119%, NTES screens cheaper than that median.

Fair Value models

Bear $149.72 Fair Value $254.36 Bull $330.67
Model Each model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($3.48 per share) are deliberately not added. Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence Evidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF $1,350 $2,079 $4,398 76
EPV $523.11 $597.00 $661.65 74
Growth DCF $1,275 $2,302 $4,379 74
All 26 models by family
DCF Models
FCF DCF $1,350 $2,079 $4,398 76
Owner Earnings $935.71 $2,028 $4,320 71
5Y Revenue Exit $723.42 $1,094 $1,854 71
5Y EBITDA Exit $827.52 $1,306 $2,232 73
5Y P/E Exit $1,079 $2,218 $3,749 68
10Y Revenue Exit $896.95 $1,620 $2,035 67
10Y EBITDA Exit $989.29 $1,842 $3,305 65
10Y P/E Exit $1,173 $2,378 $4,406 60
Earnings-Based
Graham-Dodd $358.56 $2,501 $3,509 63
Lynch FV $906.89 $1,296 $1,684 61
PEG = 1.0 $906.89 $1,296 $1,684 57
EPV $523.11 $597.00 $661.65 74
Dividend Discount
Gordon GGM $192.87 $401.02 $636.18 66
DDM Multi-Stage $192.87 $338.15 $420.88 66
Multiples
P/E Multiple $870.03 $1,160 $1,450 63
P/S Multiple $461.76 $615.68 $769.60 58
P/B Multiple $657.63 $876.83 $1,096 55
EV/EBIT $751.44 $975.32 $1,199 66
EV/EBITDA $614.26 $792.42 $970.57 67
EV/Revenue $449.21 $607.53 $765.85 54
Asset-Based
NCAV (Graham) $125.26 $167.85 $250.52 54
Growth DCF
Growth DCF $1,275 $2,302 $4,379 74
Rev-Margin DCF $723.42 $1,242 $2,168 70
Economic Profit
Residual Income $345.54 $449.42 $1,801 64
ROIC Compounder $652.08 $929.09 $1,319 71
Growth Earnings
Growth-Adj P/E $1,192 $1,703 $2,213 67

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Quality Score breakdown

Overall quality 81/100

Of which business quality 79 · Market factors (momentum, volatility) 38

Profitability 71
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 91
Earnings quality: real cash, not paper profit
Fin. Strength 95
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 89
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality Growth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 88/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+7.0%
Revenue growth 3 years Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.3%
Revenue growth 5 years Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.9%
Revenue growth 26 years Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+40.7%
What shareholders gained per year (last 5 years) What the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+18.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+15.9%
Dividend (yield on the price)2.6%
Pace: 5 vs 10 years Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.16% vs 18%, steady
Profit margin 2020 to 2025 Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.20% → 32%

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Peer GroupHow 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.Electronic Gaming & Multimedia · 145 stocks

Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 81 · Top 25%
Fair Value upside +45% · Above median
Profitability
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%
Growth and dividend
Revenue growth 6% · Above median
Dividend yield (TTM) 2.6% · Below median
Balance sheet
Debt / equity 0.00× · Below median

Valuation Multiplesvs Electronic Gaming & Multimedia median · lower = cheaper

P/E (TTM) 14.8× · Cheaper than median
P/B 3.54× · Priciest 25%
P/S (TTM) 4.97× · Priciest 25%
P/FCF 1.8× · Pricier than median
EV/EBITDA 12.9× · Pricier than median
PEG 1.45× · Pricier than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)100 · sector 40
FUTURE (revenue growth)31 · sector 14
PAST (return on equity)89 · sector 18
HEALTH (low debt)100 · sector 99
DIVIDEND (yield)52 · sector 53

Context: sector, industry, market

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

Similar stocks

10 more Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
Konami Group KNM £206.75 £65.48 −68%
Electronic Arts Inc EA $209.70 $76.57 −63%
Take-Two Interactive Software, Inc TTWO $211.81 $60.20 −72%
Roblox Corporation RBLX $50.24 $44.96 −11%
Zhejiang Century Huatong Group 002602 ¥14.54 ¥27.63 +90%
KRAFTON, Inc 259960 203,000 KRW 395,557 KRW +95%
Giant Network Group 002558 ¥24.97 ¥31.97 +28%
International Games System Co 3293 725.00 TWD 1,176 TWD +62%
CD Projekt S.A CDR 236.40 PLN 260.04 PLN +10%
37 Interactive Entertainment Network Technology Group 002555 ¥17.59 ¥39.46 +124%

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Frequently asked questions

Is NetEase Inc (NTES) overvalued or undervalued?
As of Sep 17, 2026, our model estimates a fair value of $254.36 versus a price of $116.19, about +119% upside (undervalued).
What is the fair value of NTES?
Our model-based fair value for NetEase Inc is $254.36 (as of Sep 17, 2026), built from audited fundamentals. The current price: $116.19.
What is the quality score of NTES?
NetEase Inc has a Quality Score of 81/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for NetEase Inc (NTES)?
Our model-based price target is the fair value of $254.36 (as of Sep 17, 2026) from 26 valuation models. Cautious scenario $149.72, optimistic scenario $330.67. It is a calculation from audited fundamentals, not an analyst target.
What is the NetEase Inc stock forecast for 2026?
Our models put fair value at $254.36, about +119% upside versus a price of $116.19 (undervalued). Cautious scenario $149.72, optimistic scenario $330.67. The calculation is refreshed regularly with new filings.
What is the revenue of NetEase Inc (NTES)?
NetEase Inc reported trailing-twelve-month revenue of about 114B CNY (latest available figure, as of Sep 17, 2026).
Does NetEase Inc pay a dividend?
NetEase Inc currently shows a dividend yield of about 2.61% relative to its recent price (as of Sep 17, 2026).
What is the intrinsic value of NetEase Inc (NTES)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For NetEase Inc it is $254.36 per share (as of Sep 17, 2026), against a price of $116.19. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is NetEase Inc stock overvalued or undervalued in 2026?
As of Sep 17, 2026, NTES trades below its calculated fair value: price $116.19, fair value $254.36, a gap of about +119% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of NTES?
No. The price is what the market pays today ($116.19); the fair value is what the company's own numbers justify ($254.36). For NetEase Inc the two are $138.17 per share apart. That gap is exactly why we show both numbers side by side.
How much is NetEase Inc worth?
The market values NetEase Inc at about $84.7B (market capitalisation, as of Sep 17, 2026). Per share that is $116.19; our models calculate a fair value of $254.36 per share.
What do the bullish and bearish scenarios say about NTES?
Our models span a range for NetEase Inc: cautious scenario $149.72, base $254.36, optimistic $330.67 per share (as of Sep 17, 2026, price $116.19). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of NTES?
NetEase Inc trades at a price-to-earnings ratio of 14.8 (as of Sep 17, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $254.36 is built from several models across several years. Other multiples: PEG 1.5, P/B 3.5, P/S 5.0, EV/EBITDA 12.9.
What is the PEG ratio of NTES?
The PEG ratio of NetEase Inc is 1.45 (P/E divided by earnings growth, as of Sep 17, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of NetEase Inc (NTES)?
Balance-sheet figures for NetEase Inc (as of Sep 17, 2026): return on equity 22.1%, debt of 0.00 per unit of equity. They feed the Quality Score of 81/100, which measures business quality independently of the share price.
How far is NTES from its 52-week high?
NetEase Inc trades at $116.19, about 26% below its 52-week high of $156.41 and 10% above the low of $105.44 (as of Sep 17, 2026). Distance from the high says nothing about value: that is what the fair value of $254.36 is for.
Which stocks are comparable to NetEase Inc?
From the same area (Communication Services) we also value Konami Group, Electronic Arts Inc, Take-Two Interactive Software, Inc, Roblox Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is NetEase Inc stock attractive at the current price?
The data as of Sep 17, 2026: price $116.19, calculated fair value $254.36 (+119%), Quality Score 81/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of NTES calculated?
We run NetEase Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $254.36, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. NetEase Inc currently trades 119 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of NetEase Inc (NTES)?
The closing price on Sep 18, 2026 was $116.19. Our model-based fair value is $254.36, about +119% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with NetEase Inc right now?
The rarer combination: high quality (81/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case ($149.72). The market is more pessimistic than our downside scenario. A fairly wide model range ($149.72 to $330.67) leaves room in how you read the outcome.
Where does the earnings growth of NetEase Inc (NTES) come from?
Earnings per share at NetEase Inc grew +17.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +18.2 %, EBIT margin −1.7 %, tax rate +0.0 %, residual (interest, one-offs) +0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of NetEase Inc

How large is the market capitalisation of NetEase Inc (NTES)?
The market capitalisation of NetEase Inc is $84.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of NetEase Inc (NTES)?
The price-to-sales ratio of NetEase Inc is 4.44 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of NetEase Inc (NTES)?
Earnings per share at NetEase Inc are $7.84 (price ÷ EPS = P/E 14.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of NetEase Inc (NTES)?
The dividend yield of NetEase Inc is 2.6% (payout 38.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of NetEase Inc (NTES)?
The net margin of NetEase Inc is 30.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of NetEase Inc (NTES)?
The return on equity (ROE) of NetEase Inc is 22.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of NetEase Inc (NTES)?
On an EBIT basis the return on assets of NetEase Inc is 13.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of NetEase Inc (NTES)?
The operating margin of NetEase Inc is 41.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at NetEase Inc (NTES)?
Revenue at NetEase Inc is growing +6.1% versus a year earlier (3y avg +5.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at NetEase Inc (NTES)?
Earnings per share at NetEase Inc are growing +3.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does NetEase Inc (NTES) generate?
The free cash flow of NetEase Inc is $48.3B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does NetEase Inc (NTES) hold?
NetEase Inc holds more cash than debt, $45.1B net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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