NetEase Inc (9999) Fair Value & Analysis

Communication Services · HK · Market cap HK$672B (≈ $85.6B) · ISIN KYG6427A1022

What is NetEase Inc really worth?

NI NetEase Inc 9999 · HK

PriceHK$189.10

Fair ValueHK$263.39

Upside+39.3%

Quality78/100

A strong business, trading 28% below our fair value of HK$263.39.

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Strengths

✓Healthy Growth (revenue 5y +8.9 %/yr)

✓Highly profitable · 29.8% net margin

✓Low debt · generates free cash flow

✓Wide moat 84/100

Risks

!Mixed vs. peers (8/15)

For context

·2.50% dividend yield

Evidence: High Range HK$201.07 – HK$439.95

Fair value as of: Sep 2, 2026

From 26 valuation models · updated 2 days ago

Fair value updated Sep 2, 2026, revised from HK$262.75 to HK$263.39 (+0.2%) since Aug 13, 2026. Share price −6.7% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

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

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$201.07). The market is more pessimistic than our downside scenario.
A fairly wide model range (HK$201.07 to HK$439.95) 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 Sep 2, 2026.

How to read this chart

60‑month range HK$77.52 – HK$241.56 · fair‑value band HK$201.07 – HK$439.95 · the HK$189.10 price screens below the HK$263.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 2, 2026.

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Analysis

NetEase Inc (9999) currently trades at HK$189.10, while our model-based Fair Value estimate is HK$263.39, implying the stock looks roughly 28.2% undervalued today. The Quality Score stands at 78/100 (high quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of HK$441.28 per share, and 18 of the 26 models we run sit above the HK$189.10 price. Bear case: the Asset-Based group reads lowest at HK$33.56, and 8 of the 26 models stay below the price. Evidence for this calculation is 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 Sep 2, 2026

Our scenario range runs from HK$201.07 (bear case) to HK$439.95 (bull case); at HK$189.10, 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 22% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −46% fair-value upside, at 39%, 9999 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly HK$4.66 per share, which is 1.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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

FCF DCF HK$286.03 HK$451.34 HK$991.87 75

EPV HK$109.19 HK$125.61 HK$140.22 74

Growth DCF HK$270.50 HK$508.32 HK$1,010 74

All 26 models by family

DCF Models

FCF DCF HK$286.03 HK$451.34 HK$991.87 75

Owner Earnings HK$197.55 HK$441.28 HK$975.81 70

5Y Revenue Exit HK$170.32 HK$269.86 HK$475.61 70

5Y EBITDA Exit HK$209.67 HK$349.89 HK$622.77 72

5Y P/E Exit HK$256.64 HK$546.87 HK$940.09 68

10Y Revenue Exit HK$200.41 HK$385.93 HK$500.36 66

10Y EBITDA Exit HK$234.50 HK$471.81 HK$890.43 65

10Y P/E Exit HK$269.46 HK$574.30 HK$1,092 60

Earnings-Based

Graham-Dodd HK$71.71 HK$500.11 HK$701.82 63

Lynch FV HK$181.75 HK$259.64 HK$337.53 61

PEG = 1.0 HK$181.75 HK$259.64 HK$337.53 57

EPV HK$109.19 HK$125.61 HK$140.22 74

Dividend Discount

Gordon GGM HK$40.47 HK$88.35 HK$148.65 65

DDM Multi-Stage HK$40.47 HK$72.37 HK$92.07 66

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 66

EV/EBITDA HK$176.44 HK$229.89 HK$283.34 67

EV/Revenue HK$117.96 HK$161.61 HK$205.27 54

Asset-Based

NCAV (Graham) HK$25.05 HK$33.56 HK$50.09 54

Growth DCF

Growth DCF HK$270.50 HK$508.32 HK$1,010 74

Rev-Margin DCF HK$170.32 HK$306.67 HK$552.30 70

Economic Profit

Residual Income HK$72.19 HK$93.84 HK$404.31 64

ROIC Compounder HK$137.80 HK$200.66 HK$292.18 70

Growth Earnings

Growth-Adj P/E HK$265.15 HK$378.79 HK$492.43 67

Widest divergence: DCF Models (HK$441.28) versus Asset-Based (HK$33.56). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 15.4 as of Jun 7, 2026

P/S ratio 4.61 P/E × margin

EPS (TTM) HK$11.59 price ÷ EPS = P/E 15.4

Dividend yield 2.5% payout 40.8%

Net margin 30.0% FY2025

Return on equity 22.1% TTM

More key figures

Profitability

Return on assets (EBIT) 13.6% avg 5y

Operating margin 41.4% TTM

Growth

Revenue (TTM) HK$114B TTM

Revenue growth (YoY) +6.1% 3y avg +5.3%

EPS growth (YoY) +3.1%

Balance sheet & cash flow

Free cash flow HK$48.4B FY2025

Net cash HK$45.1B FY2025

Figures from reported company fundamentals · as of Sep 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 78/100

Of which business quality 76 · Market factors (momentum, volatility) 45

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 68

Calm price path (market factor)

Momentum 42

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

52W Momentum 25

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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 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.

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. revenue 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. revenue 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. revenue 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%

Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.

+18.4% (15.9 + 2.5)

Revenue +6.5%/yr

FY21 87.6B CNY

FY22 96.5B CNY

FY23 103B CNY

FY24 105B CNY

FY25 113B CNY

Net income +19.0%/yr

FY21 16.9B CNY

FY22 20.3B CNY

FY23 29.4B CNY

FY24 29.7B CNY

FY25 33.8B CNY

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

Revenue per share +18.2 %

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

EBIT margin −1.7 %

Tax rate +0.0 %

Residual (interest, one-offs) +0.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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NetEase Inc · Fair Value
HK$263.39 +28%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 · 150 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 +48% · 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) 2.5% · 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

Strength profile in five axes (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.

This stock

Sector peers

VALUE97 · sector 16

FUTURE31 · sector 6

PAST89 · sector 18

HEALTH100 · sector 100

DIVIDEND50 · sector 55

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 (as of Sep 2, 2026).

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Zhejiang Century Huatong Group 002602	¥13.90	¥14.68	+6%
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International Games System Co 3293	762.00 TWD	568.16 TWD	−25%
CD Projekt S.A CDR	234.40 PLN	64.48 PLN	−72%
37 Interactive Entertainment Network Technology Group 002555	¥19.21	¥22.29	+16%

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Frequently asked questions

Is NetEase Inc (9999) overvalued or undervalued?

As of Sep 2, 2026, our model estimates a fair value of HK$263.39 versus a price of HK$189.10, about +39% upside (undervalued).

What is the fair value of 9999?

Our model-based fair value for NetEase Inc is HK$263.39 (as of Sep 2, 2026), built from audited fundamentals. The current price: HK$189.10.

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 Sep 2, 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 2.50% relative to its recent price (as of Sep 2, 2026).

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