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NetEase, Inc. American Depositary Receipt represents shares of NetEase, Inc., a leading Chinese technology company specializing in premium online services focused on content, community, communication, and commerce. The company primarily develops and operates popular mobile and PC online games, including both proprietary titles and licensed games from global developers such as Blizzard Entertainment and Mojang AB. It operates through key segments: Games and Related Value-Added Services, which encompass game development, live streaming, and ancillary services; Youdao, providing online intelligent learning services; NetEase Cloud Music, offering music streaming and subscription packages; and Innovative Businesses and Others, including private label e-commerce via Yanxuan and additional internet content services. These offerings serve a vast audience in China and internationally, spanning gaming, education, entertainment, and e-commerce sectors. Founded in 1997 and headquartered in Hangzhou, China, NetEase, Inc. American Depositary Receipt enables access to this dynamic player in the global digital entertainment and technology landscape.
$131.29
+$0.96 (+0.74%)
EOD Jul 17, 2026
Margins and capital returns are both well above average: 31.82% operating margin, ROIC at 31.44%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue up 639.2% YoY with margins expanding 3.7pp.
Even for strong businesses, today's 17x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
16.8x earnings, 11.4x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
¥114.39B
▲ +639.2% YoY
Net Income (TTM)
¥35.10B
▲ +694.9% YoY
Op. Margin
33.26%
▲ +3.7pp YoY
ROIC
31.44%
▲ +27.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
¥50.46B
▲ +798.0% YoY
Op. Cash Flow (TTM)
¥51.34B
▲ +762.5% YoY
Net Debt
-¥155.88B
Net Cash Position
Cash & Equiv.
¥162.61B
3Y CAGR: +5.3%
3Y CAGR: +24.8%
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At a P/E of 16.8 and a price-to-free-cash-flow of 11.4, NetEase (NTES) trades below a two-stage DCF intrinsic value of about CNY 3,818.53 per share, so at CNY 131.29 the stock looks undervalued (2,808.5% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, NetEase scores 86/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.3%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about CNY 3,818.53 per share for NTES, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around CNY 2,863.90. At today's CNY 131.29, that puts the stock about 2,808.5% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
NetEase scores 86 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 33.3% operating margin and a 31.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, NetEase pays a regular dividend of about CNY 20.76 per share per year (typically in quarterly installments), a yield of roughly 2.3% at the current price. That is a payout ratio of about 38.2% of earnings, so the dividend is amply covered by earnings. NetEase has grown the dividend at roughly 40.9% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For NTES's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. NTES currently trades below its estimated intrinsic value and scores 86/100 on quality (high-quality). It also yields about 2.3%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.