NetEase, Inc (NTES) Fair Value & Analysis
Communication Services · US · Market cap $80.6B
NetEase, Inc
NTES · US
Fair value as of: Jul 17, 2026
From 26 valuation models · updated 21 days ago
Fair value updated Jul 17, 2026, revised from $170.52 to $171.10 (+0.3%) since Jun 24, 2026. Share price −0.4% over the past month.
A solid business, screening 31% undervalued on our models.
What matters now
- The rarer combination: high quality (73/100) AND below fair value. That earns a closer look rather than a quick verdict.
- A fairly wide model range ($128.32 to $294.64) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.
How to read this chart
60‑month range $50.57 – $156.20 · fair‑value band $128.32 – $294.64 · the $130.36 price screens below the $171.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.
Analysis
NetEase, Inc (NTES) currently trades at $130.36, while our model-based Fair Value estimate is $171.10, implying the stock looks roughly 31.3% undervalued today. We read business quality at 73/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
Over the trailing twelve months, NetEase, Inc generated revenue of $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 $45.1B. Fundamentals as of Jul 17, 2026
Our scenario range runs from $128.32 (bear case) to $294.64 (bull case); at $130.36, 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 24% 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 31%, NTES 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.
All 26 models by family
Widest divergence: DCF Models ($384.27) versus Asset-Based ($33.72). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 79 · Market factors (momentum, volatility) 52
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
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.
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 ¥113B in FY2025 versus ¥87.6B in FY2021, a compound +6.5%/yr. Reported net income was ¥33.8B in FY2025, compounding +19.0%/yr from FY2021.
Watch NTES: get an alert when its fair value changes →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- NetEase Cloud Music Inc. to Report First Half 2026 Financial Results on August 20, 2026
- NetEase to Report Second Quarter 2026 Financial Results on August 20
- JD.com and NetEase Charts Point to More Upside in Chinese Tech
- Is NetEase (SEHK:9999) Undervalued Despite Richer Earnings Pricing?
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.
Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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 17, 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% |
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Frequently asked questions
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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.
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