NetEase, Inc. ADR
NetEase, Inc. ADR is an internet technology company focused on premium online services centered on content, community, communication, and commerce. The company develops and operates a broad portfolio of digital businesses, with a strong emphasis on online and mobile gaming for Chinese and international users. It also offers music streaming, interactive entertainment, online education, and consumer internet services through platforms that connect users with digital content and social features. NetEase, Inc. ADR plays an important role in the digital media and technology market by combining gaming, content distribution, and online services within a single ecosystem. Its business mix reflects the wider shift toward mobile-first entertainment, platform-based engagement, and recurring digital consumption across consumer internet markets.
$122.98
-$2.13 (-1.70%)
EOD Oct 21, 2026
Margins and capital returns are both well above average: 31.82% operating margin, ROIC at 18.19%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue growth slowed to 1.3%, essentially flat. This is a business that needs a catalyst.
Even for strong businesses, today's 16x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
16.3x earnings, 10.6x 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.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
¥116.60B
▲ +1.3% YoY
Net Income (TTM)
¥33.17B
▲ +9.0% YoY
Op. Margin
35.23%
▲ +3.7pp YoY
ROIC
18.19%
▲ +1.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
¥50.00B
▲ +23.1% YoY
Op. Cash Flow (TTM)
¥51.48B
▲ +20.7% YoY
Net Debt
-¥155.88B
Net Cash Position
Cash & Equiv.
¥162.61B
3Y CAGR: +5.3%
3Y CAGR: +24.8%
Continue Research
Is NetEase, Inc. ADR (NTES) overvalued?
At a P/E of 16.3 and a price-to-free-cash-flow of 10.6, NetEase, Inc. ADR (NTES) trades below a two-stage DCF intrinsic value of about CNY 3,730.89 per share, so at CNY 122.98 the stock looks undervalued (2,933.7% 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, Inc. ADR scores 84/100 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 2.6%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is NetEase, Inc. ADR's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about CNY 3,730.89 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 2,798.17. At today's CNY 122.98, that puts the stock about 2,933.7% 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.
Is NetEase, Inc. ADR a high-quality business?+
NetEase, Inc. ADR scores 84 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 35.2% operating margin and a 18.2% 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 company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does NetEase, Inc. ADR (NTES) pay a dividend, and how much?+
Yes, NetEase, Inc. ADR pays a regular dividend of about CNY 20.99 per share per year (typically in quarterly installments), a yield of roughly 2.6% at the current price. That is a payout ratio of about 40.8% of earnings, so the dividend is well covered. NetEase, Inc. ADR has grown the dividend at roughly 27.8% 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.
Is NetEase, Inc. ADR a good stock to buy right now?+
That depends on valuation and quality together, not either alone. NTES currently trades below its estimated intrinsic value and scores 84/100 on quality (high-quality). It also yields about 2.6%. 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 company filings, not investment advice.
Related stocks: Electronic Gaming & Multimedia
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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