# NetEase Inc. American (NTES) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $119.29, market value $76.4 billion.

## Valuation
- **P/E (trailing): 15.9×** (5-yr avg 83.6×, 3-yr avg 75.6×). NetEase Inc. American trades at 15.9× trailing earnings, well below its own five-year average of 83.6×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 11.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.58**. A PEG of 0.58 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 15.3×**. The shares trade at 15.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 1.6×**. Enterprise value is 1.6× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 65.5%** (5-yr avg 1.6%). Free cash flow equals 65.5% of the market value, above its five-year average of 1.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.3%**. The inverse of the P/E: 6.3% of the price is earned each year.

## Profitability
- **Gross margin: 67.2%**. NetEase Inc. American keeps 67.2% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 35.2%**. 35.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 30.9%**. 30.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 21.7%**. 21.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 206.1%**. Return on all capital, debt included, is 206.1%: comfortably above what that capital costs.
- **Return on assets: 102.7%**. Each dollar of assets produces 102.7% of profit.

## Growth
- **Revenue growth (1 yr): 11.6%** (3-yr 4.8%/yr, 5-yr 7.4%/yr). Revenue grew 11.6% over the last year, against 7.4% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 19.0%** (3-yr 19.0%/yr, 5-yr 22.2%/yr). Earnings per share rose 19.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 24.1%/yr**. Free cash flow has compounded at 24.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. NetEase Inc. American holds more cash than debt.
- **Current ratio: 3.45** (quick 3.45). Current assets cover the next year's liabilities 3.45 times.
- **Altman Z-score: 8.44**. A Z-score of 8.44 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.46%** ($2.93 per share, trailing). NetEase Inc. American yields 2.46%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 40%** (27% of free cash flow). 40% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 26.7%/yr** (1-yr 24.1%). The dividend has compounded at 26.7% a year over five years, doubling roughly every 3 years at that pace.

## Analyst view
- **Analyst consensus: strong_buy** (32 analysts). 32 analysts cover NetEase Inc. American; the consensus is strong_buy, with an average price target of $162.09 (+36% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -8.6%** (YTD -11.9%, 3-mo -0.2%). The shares are down 8.6% over twelve months including dividends.
- **From 52-week high: -25.2%** (12.5% above the low). Trading 25% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 0.58** (volatility 34%). Beta of 0.58 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NTES · Page: https://foliofundamentals.com/stocks/ntes

Not investment advice.