NetEase, Inc. (NTES) Financial Ratios
27 years of historical data (1999–2025) · Technology · Electronic Gaming & Multimedia
EV/EBITDA
↓
12.40
↑+527% vs avg
5yr avg: 1.98
30Y Low0.0·High33.8
P/FCF
↓
10.44
↑+401% vs avg
5yr avg: 2.08
30Y Low1.4·High14.3
P/B Ratio
↓
3.10
↑+508% vs avg
5yr avg: 0.51
30Y Low0.1·High5.6
ROE
↑
21.3%
↓+2% vs avg
5yr avg: 21.0%
30Y Low-38%·High50%
Debt/EBITDA
↓
0.17
↓-76% vs avg
5yr avg: 0.72
30Y Low0.0·High2.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
NTES Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
NetEase, Inc. trades at 15.6x earnings, 493% above its 5-year average of 2.6x, sitting at the 92nd percentile of its historical range. Compared to the Technology sector median P/E of 27.7x, the stock trades at a discount of 44%. On a free-cash-flow basis, the stock trades at 10.4x P/FCF, 401% above the 5-year average of 2.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $74.2B | $88.6B | $57.6B | $60.6B | $48.9B | $68.5B | $64.2B | $39.9B | $30.6B | $45.8B | $28.5B |
| Enterprise Value | $67.5B | $43.4B | $19.1B | $59.6B | $52.5B | $75.7B | $75.4B | $53.9B | $38.9B | $49.6B | $26.9B |
| P/E Ratio → | 15.62 | 2.70 | 1.94 | 2.06 | 2.40 | 4.06 | 5.32 | 3.01 | 3.69 | 4.27 | 2.45 |
| P/S Ratio | 4.60 | 0.81 | 0.55 | 0.59 | 0.51 | 0.78 | 0.87 | 0.67 | 0.60 | 1.03 | 0.75 |
| P/B Ratio | 3.10 | 0.54 | 0.40 | 0.47 | 0.45 | 0.69 | 0.68 | 0.64 | 0.67 | 0.99 | 0.74 |
| P/FCF | 10.44 | 1.83 | 1.54 | 1.95 | 1.95 | 3.14 | 2.97 | 2.87 | 4.69 | 4.56 | 1.99 |
| P/OCF | 10.22 | 1.79 | 1.45 | 1.71 | 1.77 | 2.75 | 2.58 | 2.32 | 2.28 | 3.85 | 1.84 |
P/E links to full P/E history page with 30-year chart
NTES EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
NetEase, Inc.'s enterprise value stands at 12.4x EBITDA, 527% above its 5-year average of 2.0x. The Technology sector median is 17.5x, placing the stock at a 29% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.40 | 0.18 | 0.58 | 0.54 | 0.86 | 1.02 | 0.91 | 0.76 | 1.12 | 0.70 |
| EV / EBITDA | 12.40 | 1.17 | 0.60 | 1.94 | 2.33 | 3.85 | 4.19 | 3.29 | 3.23 | 3.60 | 2.07 |
| EV / EBIT | 13.18 | 1.25 | 0.64 | 2.15 | 2.67 | 4.61 | 5.18 | 3.91 | 3.90 | 3.82 | 2.13 |
| EV / FCF | — | 0.90 | 0.51 | 1.92 | 2.09 | 3.47 | 3.49 | 3.88 | 5.96 | 4.94 | 1.87 |
NTES Profitability
Margins and return-on-capital ratios measuring operating efficiency
NetEase, Inc. earns an operating margin of 31.8%. Operating margins have expanded from 26.8% to 31.8% over the past 3 years, signaling improving operational efficiency. ROE of 21.3% indicates solid capital efficiency. ROIC of 23.3% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.3% | 64.3% | 62.5% | 60.9% | 54.7% | 53.6% | 52.9% | 53.3% | 55.5% | 58.3% | 56.7% |
| Operating Margin | 31.8% | 31.8% | 28.1% | 26.8% | 20.3% | 18.7% | 19.7% | 23.3% | 19.5% | 29.2% | 33.1% |
| Net Profit Margin | 30.0% | 30.0% | 28.2% | 28.4% | 21.1% | 19.2% | 16.4% | 35.8% | 12.0% | 24.1% | 30.4% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.3% | 21.3% | 22.0% | 24.8% | 19.5% | 17.5% | 15.4% | 39.1% | 13.3% | 25.2% | 34.2% |
| ROA | 15.7% | 15.7% | 15.6% | 16.4% | 12.5% | 11.4% | 9.5% | 21.3% | 7.8% | 16.6% | 23.4% |
| ROIC | 23.3% | 23.3% | 19.2% | 17.3% | 13.4% | 11.6% | 12.0% | 15.7% | 14.3% | 22.4% | 30.4% |
| ROCE | 22.1% | 22.1% | 21.3% | 22.3% | 17.9% | 16.6% | 17.2% | 21.9% | 20.1% | 30.2% | 37.0% |
NTES Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
NetEase, Inc. carries a Debt/EBITDA ratio of 0.2x, which is very conservative (94% below the sector average of 2.9x). The company holds a net cash position — cash of $51.5B exceeds total debt of $6.4B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.04 | 0.04 | 0.09 | 0.16 | 0.26 | 0.22 | 0.22 | 0.28 | 0.30 | 0.14 | 0.10 |
| Debt / EBITDA | 0.17 | 0.17 | 0.40 | 0.67 | 1.27 | 1.10 | 1.13 | 1.05 | 1.13 | 0.48 | 0.29 |
| Net Debt / Equity | — | -0.27 | -0.27 | -0.01 | 0.03 | 0.07 | 0.12 | 0.22 | 0.18 | 0.08 | -0.04 |
| Net Debt / EBITDA | -1.22 | -1.22 | -1.21 | -0.03 | 0.16 | 0.37 | 0.62 | 0.86 | 0.69 | 0.28 | -0.13 |
| Debt / FCF | — | -0.93 | -1.03 | -0.03 | 0.14 | 0.33 | 0.52 | 1.01 | 1.27 | 0.38 | -0.11 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($51.5B) exceeds total debt ($6.4B)
NTES Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
NetEase, Inc.'s current ratio of 3.45x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 2.65x to 3.45x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.45 | 3.45 | 3.09 | 2.65 | 2.32 | 2.24 | 2.31 | 2.23 | 1.96 | 2.61 | 2.58 |
| Quick Ratio | 3.44 | 3.44 | 3.08 | 2.64 | 2.30 | 2.22 | 2.29 | 2.21 | 1.93 | 2.38 | 2.49 |
| Cash Ratio | 3.19 | 3.19 | 2.77 | 2.35 | 2.07 | 1.93 | 2.00 | 1.88 | 1.41 | 1.82 | 1.90 |
| Asset Turnover | — | 0.49 | 0.54 | 0.56 | 0.56 | 0.57 | 0.52 | 0.53 | 0.59 | 0.63 | 0.66 |
| Inventory Turnover | 56.74 | 56.74 | 69.09 | 58.11 | 44.01 | 42.12 | 58.64 | 42.56 | 36.37 | 5.15 | 10.46 |
| Days Sales Outstanding | — | 17.79 | 28.24 | 32.57 | 19.07 | 26.44 | 29.41 | 25.69 | 28.55 | 29.73 | 40.64 |
NTES Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
NetEase, Inc. returns 2.7% to shareholders annually — split between a 2.6% dividend yield and 0.1% buyback yield. A payout ratio of 41.0% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 6.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.6% | 15.2% | 19.4% | 13.2% | 13.7% | 5.1% | 6.7% | 22.2% | 4.7% | 7.1% | 8.9% |
| Payout Ratio | 41.0% | 41.0% | 37.6% | 27.2% | 33.1% | 20.8% | 35.5% | 41.6% | 23.4% | 30.4% | 21.9% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.4% | 37.1% | 51.5% | 48.6% | 41.6% | 24.6% | 18.8% | 33.3% | 27.1% | 23.4% | 40.7% |
| FCF Yield | 9.6% | 54.6% | 65.0% | 51.3% | 51.2% | 31.8% | 33.7% | 34.8% | 21.3% | 21.9% | 50.4% |
| Buyback Yield | 0.1% | 0.7% | 15.3% | 8.6% | 17.0% | 18.9% | 0.0% | 0.0% | 24.5% | 4.5% | 4.2% |
| Total Shareholder Yield | 2.7% | 15.9% | 34.7% | 21.9% | 30.8% | 24.0% | 6.7% | 22.2% | 29.2% | 11.6% | 13.1% |
| Shares Outstanding | — | $644M | $646M | $650M | $673M | $673M | $670M | $650M | $651M | $663M | $661M |
Peer Comparison
Compare NTES with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 NTESYou | $74B | 15.6 | 12.4 | 10.4 | 64.3% | 31.8% | 21.3% | 23.3% | 0.2 |
 BIDU | $49B | 14.4 | 10.8 | 25.4 | 50.3% | 16.0% | 8.7% | 4.8% | 2.2 |
 BILI | $7B | -46.3 | 38.6 | 11.7 | 32.7% | -5.0% | -9.4% | -8.4% | 4.4 |
 HUYA | $481M | -103.7 | — | — | 13.3% | -3.1% | -0.5% | -1.7% | — |
 DOYU | $142M | -3.3 | — | — | 7.6% | -13.2% | -5.5% | -15.4% | — |
 EA | $50B | 57.2 | 39.8 | 21.6 | 79.0% | 15.4% | 13.5% | 14.7% | 1.2 |
 TTWO | $47B | -8.7 | — | — | 54.4% | -77.9% | -114.8% | -49.8% | — |
 RBLX | $32B | -29.1 | — | 23.7 | 78.1% | -25.2% | -365.0% | -87.7% | — |
 PLTK | $1B | -6.5 | 14.1 | 2.6 | 72.5% | 0.0% | — | 0.1% | 11.2 |
 GDEV | $307M | 12.3 | 4.2 | 10.9 | 66.3% | 9.6% | — | — | 0.0 |
 NVDA | $5.1T | 43.2 | 38.6 | 53.2 | 71.1% | 60.4% | 101.5% | 81.8% | 0.1 |
| Technology Median | — | 27.7 | 17.5 | 19.2 | 48.5% | -0.6% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonNTES — Frequently Asked Questions
Quick answers to the most common questions about buying NTES stock.
What is NetEase, Inc.'s P/E ratio?
NetEase, Inc.'s current P/E ratio is 15.6x. The historical average is 5.8x. This places it at the 92th percentile of its historical range.
What is NetEase, Inc.'s EV/EBITDA?
NetEase, Inc.'s current EV/EBITDA is 12.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.6x.
What is NetEase, Inc.'s ROE?
NetEase, Inc.'s return on equity (ROE) is 21.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.4%.
Is NTES stock overvalued?
Based on historical data, NetEase, Inc. is trading at a P/E of 15.6x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is NetEase, Inc.'s dividend yield?
NetEase, Inc.'s current dividend yield is 2.62% with a payout ratio of 41.0%.
What are NetEase, Inc.'s profit margins?
NetEase, Inc. has 64.3% gross margin and 31.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does NetEase, Inc. have?
NetEase, Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.