NetEase, Inc (9999) Fair Value & Analysis

Communication Services · HK · Market cap HK$672B

NI NetEase, Inc 9999 · HK

PriceHK$193.60

Fair ValueHK$262.75

Upside+35.7%

Quality78/100

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Healthy Growth

Highly profitable · 29.8% net margin

Low debt · generates free cash flow

2.06% dividend yield

Mixed vs. peers (8/15)

Wide moat 84/100

Evidence: High Range HK$200.58 – HK$438.82 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from HK$192.74 to HK$262.75 (+36.3%) since Jul 16, 2026. Share price −4.4% over the past month.

A strong business, screening 36% undervalued on our models.

What matters now

The rarer combination: high quality (78/100) AND below fair value. That earns a closer look rather than a quick verdict.
The price is below even our cautious bear case (HK$200.58). The market is more pessimistic than our downside scenario.
A fairly wide model range (HK$200.58 to HK$438.82) 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 Aug 13, 2026.

How to read this chart

60‑month range HK$77.52 – HK$241.56 · fair‑value band HK$200.58 – HK$438.82 · the HK$193.60 price screens below the HK$262.75 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

NetEase, Inc (9999) currently trades at HK$193.60, while our model-based Fair Value estimate is HK$262.75, implying the stock looks roughly 35.7% undervalued today. The Quality Score stands at 78/100 (high 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 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 Aug 13, 2026

Our scenario range runs from HK$200.58 (bear case) to HK$438.82 (bull case); at HK$193.60, the current price sits below 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 20% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -25% fair-value upside, at 36%, 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 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

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$170.32 HK$306.67 HK$552.30 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$170.32 HK$269.86 HK$475.61 39

5Y EBITDA Exit HK$209.67 HK$349.89 HK$622.77 41

5Y P/E Exit HK$256.64 HK$546.87 HK$940.09 38

10Y Revenue Exit HK$200.41 HK$385.93 HK$500.36 36

10Y EBITDA Exit HK$234.50 HK$471.81 HK$890.43 37

10Y P/E Exit HK$269.46 HK$574.30 HK$1,092 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$221.46 HK$295.28 HK$369.10 63

P/S Multiple HK$134.46 HK$179.28 HK$224.10 58

P/B Multiple HK$134.46 HK$179.28 HK$224.10 55

EV/EBIT HK$217.58 HK$284.75 HK$351.91 53

EV/EBITDA HK$176.44 HK$229.89 HK$283.34 54

EV/Revenue HK$117.96 HK$161.61 HK$205.27 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$170.32 HK$306.67 HK$552.30 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$265.15 HK$378.79 HK$492.43 68

Widest divergence: DCF Models (HK$441.28) versus Asset-Based (HK$33.56). Highest evidence: Growth DCF (80).

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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 as of Jun 7, 2026

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 Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 78/100

Of which business quality 76 · Market factors (momentum, volatility) 47

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 44

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

52W Momentum 31

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) ⓘ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.

+5.3%

Avg. growth/yr (5Y) ⓘ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.

+8.9%

Avg. growth/yr (26Y) ⓘ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.

+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

Character of growth · EPS growth decomposed (2014-2025) +17.0 % p.a.

Revenue per share +18.2 pp

of which total revenue +18.0 pp · buybacks/dilution +0.2 pp

EBIT margin −1.7 pp

Tax rate +0.0 pp

Residual (interest, one-offs) +0.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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NetEase, Inc · Fair Value
HK$262.75 +36%Fair Value
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Cite: Fair Value Calculator (2026). "NetEase, Inc Fair Value". https://www.fairvalue-calculator.com/stock/9999

Peer Group

Electronic Gaming & Multimedia · 155 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 78 · Top 25%

Fair Value upside +37% · 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% · Below median

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

P/E (TTM) 15.4× · Cheaper 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 83 · sector 16

FUTURE 31 · sector 7

PAST 89 · sector 9

HEALTH 100 · sector 99

DIVIDEND 41 · sector 42

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 Aug 13, 2026).

Stock	Price	Fair Value	vs Fair Value
Electronic Arts Inc EA	$209.70	$76.57	-63%
Take-Two Interactive Software, Inc TTWO	$243.00	$60.20	-75%
Roblox Corporation RBLX	$36.22	$21.20	-41%
Zhejiang Century Huatong Group 002602	¥14.29	¥14.68	+3%
KRAFTON, Inc 259960	234,500 KRW	356,218 KRW	+52%
Giant Network Group 002558	¥28.57	¥15.50	-46%
International Games System Co 3293	762.00 TWD	568.16 TWD	-25%
37 Interactive Entertainment Network Technology Group 002555	¥19.21	¥22.29	+16%
Kingnet Network Co 002517	¥17.36	¥12.86	-26%
G-bits Network Technology (Xiamen) Co 603444	¥383.30	¥473.65	+24%

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Frequently asked questions

Is NetEase, Inc (9999) overvalued or undervalued?

As of Aug 13, 2026, our model estimates a fair value of HK$262.75 versus a price of HK$193.60, about +36% (undervalued).

What is the fair value of 9999?

Our model-based fair value for NetEase, Inc is HK$262.75 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$193.60.

What is the quality score of 9999?

NetEase, Inc has a Quality Score of 78/100. 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 revenue of NetEase, Inc (9999)?

NetEase, Inc reported trailing-twelve-month revenue of about HK$114B (latest available figure, as of Aug 13, 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 Aug 13, 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.

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