NetEase, Inc.
NTESdata completeness 88%16 fiscal years on fileData notes: no data for concept 'interestExpense'
NetEase, Inc. earns about 27% on invested capital, far above its ~9% cost of capital, and has bought back 4% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $13.31 and $59.18 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.
| Figure | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Revenue | $13.7B1 | $14B2 | $14.6B3 | $14.4B4 | $16.1B5 |
| Net income | $2.66B6 | $2.88B7 | $4.13B8 | $4.15B9 | $4.98B10 |
| Operating cash flow | $3.91B11 | $4.02B12 | $4.98B13 | $5.44B14 | $7.26B15 |
| Capital expenditure | $251.4M16 | $304.5M17 | $324.2M18 | $174.7M19 | $152.3M20 |
| Free cash flow (derived) | $3.66B11 | $3.71B12 | $4.65B13 | $5.26B14 | $7.1B15 |
| Total debt | $200.1M21 | $529.9M22 | $60.3M23 | $58.6M24 | — |
| Cash & equivalents | $2.28B25 | $3.61B26 | $3.02B27 | $7.04B28 | $6.74B29 |
| Diluted shares | 3.37B | 3.30B | 3.25B | 3.23B | 3.22B |
Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).
10 shares is a claim on $71.23 of net worth that earned you $15.46 and generated $22.07 of cash last year.
It earned about 27% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.
seeing a moat in the numbers →Share count is down 4% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 71% — deleveraging.
reading capital allocation →Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.
The 3 estimate methods that apply put fair value between $13.31 and $59.18 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears10
- fcfGrowth12.9%
- fcfBase$5.26B
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears5
- fcfGrowth12.9%
- fcfBase$5.26B
assumptions (8)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- normalizedEarnings$4.13B
- growthAssumed0.0%
assumptions (1)
- grahamMultiplier2250.0%
Different models answer different questions — which to trust when →
| Bear | 0.0% | $25.45 |
| Base | 12.9% | $42.29 |
| Bull | 17.9% | $51.14 |
Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.
Default growth 12.9%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.
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