Latest Ratios: P/E Ratio 16.1x · EV/EBITDA 12.9x · ROE 21.9%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $80.5B | $88.8B | $57.6B | $60.6B | $48.9B | $68.5B | $64.2B | $39.9B | $30.6B | $45.8B | $28.5B |
| Enterprise Value | $73.7B | $43.7B | $19.1B | $59.6B | $52.5B | $75.7B | $75.4B | $53.9B | $38.9B | $49.6B | $26.9B |
| P/E Ratio → | 16.13 | 2.63 | 1.94 | 2.06 | 2.40 | 4.06 | 5.32 | 3.01 | 3.69 | 4.27 | 2.45 |
| P/S Ratio | 4.78 | 0.79 | 0.55 | 0.59 | 0.51 | 0.78 | 0.87 | 0.67 | 0.60 | 1.03 | 0.75 |
| P/B Ratio | 3.29 | 0.54 | 0.40 | 0.47 | 0.45 | 0.69 | 0.68 | 0.64 | 0.67 | 0.99 | 0.74 |
| P/FCF | 11.14 | 1.84 | 1.54 | 1.95 | 1.95 | 3.14 | 2.97 | 2.87 | 4.69 | 4.56 | 1.99 |
| P/OCF | 10.90 | 1.80 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.39 | 0.18 | 0.58 | 0.54 | 0.86 | 1.02 | 0.91 | 0.76 | 1.12 | 0.70 |
| EV / EBITDA | 12.95 | 1.15 | 0.60 | 1.94 | 2.33 | 3.85 | 4.19 | 3.29 | 3.23 | 3.60 | 2.07 |
| EV / EBIT | 13.76 | 1.22 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.9% | 21.9% | 22.0% | 24.8% | 19.5% | 17.5% | 15.4% | 39.1% | 13.3% | 25.2% | 34.2% |
| ROA | 16.2% | 16.2% | 15.6% | 16.4% | 12.5% | 11.4% | 9.5% | 21.3% | 7.8% | 16.6% | 23.4% |
| ROIC | 24.0% | 24.0% | 19.2% | 17.3% | 13.4% | 11.6% | 12.0% | 15.7% | 14.3% | 22.4% | 30.4% |
| ROCE | 22.7% | 22.7% | 21.3% | 22.3% | 17.9% | 16.6% | 17.2% | 21.9% | 20.1% | 30.2% | 37.0% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | -1.19 | -1.19 | -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)
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | 0.51 | 0.54 | 0.56 | 0.56 | 0.57 | 0.52 | 0.53 | 0.59 | 0.63 | 0.66 |
| Inventory Turnover | 58.33 | 58.33 | 69.09 | 58.11 | 44.01 | 42.12 | 58.64 | 42.56 | 36.37 | 5.15 | 10.46 |
| Days Sales Outstanding | — | 17.31 | 28.24 | 32.57 | 19.07 | 26.44 | 29.41 | 25.69 | 28.55 | 29.73 | 40.64 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 2.5% | 15.1% | 19.4% | 13.2% | 13.7% | 5.1% | 6.7% | 22.2% | 4.7% | 7.1% | 8.9% |
| Payout Ratio | 39.8% | 39.8% | 37.6% | 27.2% | 33.1% | 20.8% | 35.5% | 41.6% | 23.4% | 30.4% | 21.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.2% | 38.0% | 51.5% | 48.6% | 41.6% | 24.6% | 18.8% | 33.3% | 27.1% | 23.4% | 40.7% |
| FCF Yield | 9.0% | 54.4% | 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 | 2.6% | 15.8% | 34.7% | 21.9% | 30.8% | 24.0% | 6.7% | 22.2% | 29.2% | 11.6% | 13.1% |
| Shares Outstanding | — | $646M | $646M | $650M | $673M | $673M | $670M | $650M | $651M | $663M | $661M |
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying NTES stock.
NetEase, Inc.'s current P/E ratio is 16.1x. The historical average is 5.8x. This places it at the 92th percentile of its historical range.
NetEase, Inc.'s current EV/EBITDA is 12.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.6x.
NetEase, Inc.'s return on equity (ROE) is 21.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.5%.
Based on historical data, NetEase, Inc. is trading at a P/E of 16.1x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
NetEase, Inc.'s current dividend yield is 2.47% with a payout ratio of 39.8%.
NetEase, Inc. has 64.3% gross margin and 31.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
NetEase, Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Valuation Model Distortion
Extremely Low Forward Multiples vs. TTM
NetEase's forward P/E of 1.84 and forward EV/EBITDA of 1.15 appear exceptionally low relative to its trailing P/E of 15.82 and historical growth, suggesting the market may be pricing in a severe, near-term earnings collapse not reflected in recent momentum, as reported in current valuation data.
The massive gap between trailing and forward multiples creates a dissonance; a forward P/E under 2.0 is typically associated with distressed companies or imminent dividend cuts, not a profitable growth firm. This may indicate a significant one-time cash distribution or asset restructuring is expected, or it could reflect a data anomaly in the forward estimates. Investors should scrutinize the consensus forward earnings estimates for assumptions that diverge sharply from the trailing operational trend of expanding margins.
Structural Leap to Premium Margins
Operating margin expanded to 40.2% in 2026Q2, a dramatic step-up from the 27-30% range in 2024, suggesting a fundamental improvement in cost structure or revenue mix that appears sustainable given the stable SG&A levels, according to recent financial statements.
The surge in operating margin is primarily driven by a gross margin expansion to 70.5%, which represents a significant departure from the 60-64% range seen just two years prior. This implies a potential shift towards higher-margin services, intellectual property monetization, or the successful scaling of existing products with minimal incremental cost. The consistency of SG&A expenses during this margin expansion highlights strong operating leverage, but the sustainability of this new margin plateau will be critical to long-term valuation.
ROIC Improving But Constrained by Equity Base
ROIC improved to 6.3% in 2026Q2 from a low of 4.2% in 2024Q3, yet remains well below the company's cost of capital, indicating that recent margin expansion has not yet translated into efficient capital deployment, based on the provided ratio data.
The upward trajectory in ROIC is positive, but the absolute level is underwhelming for a technology company with such high margins. The disconnect between strong operating returns and lower ROIC points to a very large equity base, likely accumulated through retained earnings and potentially inflated by the reported accounting anomaly in the retained earnings line. The company is generating significant profit but is not yet efficiently compounding returns for shareholders on a capital-employed basis.
De Minimis Leverage Amplifies Liquidity
With a D/E ratio of just 0.07 and a net cash position exceeding $14B based on 2026Q2 data, NetEase's financial leverage is functionally zero, providing maximum flexibility but potentially signaling suboptimal capital structure.
The aggressive debt reduction over the past ten quarters, from a D/E of 0.19 to 0.07, has made the balance sheet exceptionally strong from a credit perspective. However, from a return on equity perspective, maintaining such a conservative structure may be a headwind; using a modest amount of leverage could theoretically boost ROE without materially increasing financial risk. The focus has clearly been on de-risking, but this warrants a discussion on optimal capital allocation versus the current fortress posture.
Profitability and Valuation Outlier Among Peers
NetEase's net margin of 23.2% and P/E of 15.82 starkly contrast with peers like Baidu (4.3% margin, 52.68 P/E) and Bilibili (3.9% margin, 43.33 P/E), positioning it as a highly profitable yet comparatively cheap alternative in the Chinese internet sector.
The divergence is structural; NetEase's model appears to generate far superior profitability versus peers focused on search or user-generated content. Its valuation discount to peers is not justified by worse fundamentals but may reflect lower perceived growth prospects or different risk exposures. However, the extremely low forward multiples noted earlier complicate this peer analysis, as it may be an outlier in how its future earnings are being modeled.
The Forward Multiple Trap in a Cyclical Model
The P/E ratio is most commonly misapplied to NetEase, as it obscures the cyclicality of gaming revenue recognition and the impact of large, lumpy shareholder returns, which can distort the standard metric and explain the extreme forward P/E anomaly.
For gaming companies, revenue and earnings can be highly volatile around major title launches and live-service lifecycles, making a trailing P/E less predictive. More critically, NetEase's aggressive share buyback and dividend programs can drastically reduce share count and earnings per share, making P/E ratios volatile and potentially misleading for valuation. The reported forward P/E of 1.84 likely incorporates an expectation of massive near-term capital returns, not an operational collapse, making EV/EBITDA or a normalized P/E a more reliable metric for comparison.