NetEase: Q4 Underperformance Is A One-Off
NetEase remains a Buy. Its Q4 2025 results were below expectations due to non-operational factors and delayed revenue recognition. NetEase's contract liabilities surged 34% YoY, signaling robust defer...
Fiscal Year: January - December
NetEase, Inc. (NTES), listed on the NASDAQ, has a market capitalization of $. As of Feb 22, 2026, the stock is trading at $118.41 per share, offering investors a clear view of its current market value. NetEase, Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 15.06, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. NetEase, Inc. also offers a dividend yield of 2.56%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that NetEase, Inc. (NTES) may be undervalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for NetEase, Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for NetEase, Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for NetEase, Inc. is 10.11, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, NetEase, Inc. (NTES) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether NetEase, Inc. (NTES) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be undervalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of NetEase, Inc. (NTES) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of NetEase, Inc.. To access the full SS Score, consider upgrading your subscription.
NetEase, Inc. is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 15.06. Investors should compare these metrics with industry peers to gauge whether NetEase, Inc. is outperforming or underperforming within its sector.
NetEase remains a Buy. Its Q4 2025 results were below expectations due to non-operational factors and delayed revenue recognition. NetEase's contract liabilities surged 34% YoY, signaling robust defer...
NetEase, Inc. delivered modest 3% YoY revenue growth, driven by strong performance from self-developed games and new content updates. NTES benefited from higher-margin in-house titles and reduced reli...
NetEase, Inc. (NTES) Q4 2025 Earnings Call Transcript
HANGZHOU, China, Feb. 11, 2026 /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced its financial re...
Chinese videogame giant NetEase recorded lower net profit in the final quarter of 2025, partly due to a high base.
HANGZHOU, China, Feb. 11, 2026 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI-powered solutions provider specializing in artificial intelligence applications for the learn...
HANGZHOU, China, Jan. 28, 2026 /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced that it will rep...
HANGZHOU, China, Jan. 28, 2026 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI-powered solutions provider specializing in artificial intelligence applications for the learn...
U.S.-based Universal Music Group struck a deal with Chinese music streaming service NetEase Cloud Music, the two music companies announced Monday.
HANGZHOU, China, Dec. 26, 2025 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced that after 23 yea...
HANGZHOU, China , Nov. 24, 2025 /PRNewswire/ -- Chartmetric has integrated chart data from NetEase Cloud Music, one of China's largest and most youth-driven streaming platforms. The move gives global ...
NetEase Inc (NASDAQ: NTES) reported mixed fiscal third-quarter results on Thursday.
I maintain a "Buy" rating for NetEase, even though its Q3 top-line and operating income were below expectations. Looking beyond the recent quarter, an increase in deferred revenue and a stronger empha...
NetEase, Inc. ( NTES) Q3 2025 Earnings Call November 20, 2025 7:00 AM EST Company Participants Bill Pang - Vice President of Corporate Development William Ding - Founder, CEO & Director Conference Ca...
U.S. stock futures were higher this morning, with the Nasdaq futures gaining around 300 points on Thursday.
HANGZHOU, China , Nov. 20, 2025 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI-powered solutions provider specializing in artificial intelligence applications for the lear...
BEIJING , Nov. 20, 2025 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI-powered solutions provider specializing in artificial intelligence applications for the learning and...
HANGZHOU, China , Nov. 6, 2025 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI-powered solutions provider specializing in artificial intelligence applications for the learn...
I track a universe of 50 high-quality dividend growth stocks to identify opportune investments based on valuation and future return potential. As of October 2, 2025, 22 stocks offer attractive future ...
I am upgrading NetEase to "Buy," driven by a more favorable regulatory environment and a positive Q3 outlook. Recent surge in Chinese game approvals signals a supportive policy shift, justifying a rem...
I track a universe of 50 high-quality dividend growth stocks to identify attractive investment opportunities based on valuation and future return potential. My custom valuation model highlights 23 sto...
NetEase, Inc. (NASDAQ:NTES) Q2 2025 Earnings Conference Call August 14, 2025 8:00 AM ET Company Participants Bill Pang - Vice President of Corporate Development Lei Ding - Founder, CEO & Director Con...
NetEase Inc NTES reported its second-quarter results broadly in-line with expectations, according to Goldman Sachs.
HANGZHOU, China , Aug. 14, 2025 /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced its financial r...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | # Analysts |
|---|---|---|---|
| 2026 | 44.55B | Analyst x8 | |
| 2027 | 46.06B | 3.40% | Analyst x9 |
| 2028 | 50.77B | 10.22% | Analyst x6 |
| 2029 | 55.87B | 10.04% | Analyst x1 |
| 2030 | 58.60B | 4.88% | Est @4.9% |
| 2031 | 61.05B | 4.18% | Est @4.2% |
| 2032 | 63.31B | 3.70% | Est @3.7% |
| 2033 | 65.43B | 3.35% | Est @3.4% |
| 2034 | 67.33B | 2.91% | Est @2.9% |
| 2035 | 69.18B | 2.75% | Est @2.8% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2024A | 38.40B | 1.00 | 38.40B |
| 2025A | 49.67B | 1.00 | 49.67B |
| 2026E | 44.55B | 1.09 | 40.96B |
| 2027E | 46.06B | 1.18 | 38.93B |
| 2028E | 50.77B | 1.29 | 39.45B |
| 2029E | 55.87B | 1.40 | 39.91B |
| 2030E | 58.60B | 1.52 | 38.48B |
| 2031E | 61.05B | 1.66 | 36.86B |
| 2032E | 63.31B | 1.80 | 35.14B |
| 2033E | 65.43B | 1.96 | 33.39B |
| 2034E | 67.33B | 2.13 | 31.58B |
| 2035E | 69.18B | 2.32 | 29.84B |
| Terminal | 1.13T | 2.32 | 487.44B |
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