NetEase, Inc. — Electronic Gaming & Multimedia. Scored on the same transparent model behind the daily rankings.
★
NTES
NetEase, Inc. · Electronic Gaming & Multimedia
FCF$7.5bB+
Rev+7.0%C+
D/E0.06A-
P/E16.9xB+
PEG1.45B
54.8Score
$132.22$84.7B
1Y Target$161.73Analyst consensus · 32 analysts
5Y Target$236.79Compound horizon
10Y Target$351.26Long-dated conviction
FCF$7.5bTTM · 03/26B+
FCF $7.5b — strong cash profile, above most peers · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+7.0%TTM YoYC+
Revenue +7.0% — steady but below market-beating range
D/E0.06A-
D/E 0.06 — less debt than most Communication Services peers (≈25th pctile)
P/E16.9xB+
P/E 16.9 — below the Communication Services median (≈40th pctile)
PEG1.45B
PEG 1.45 — acceptable premium for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 54.8
Quality0.90
Growth0.76
Value0.44
Why this score
Raising its dividend
Durable high returns
Foreign reporter (CNY)
Entry · Margin of safety
52-week rangeMid-range
17% off the 12-month high
vs DCF fair value45% belowest. fair value ~$242
What the price assumes: free cash flow compounding at ~-7% a year for the next decade — vs the ~11% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability33% · B+gross profit ÷ total assets (Novy-Marx)
ROIC17.6% · A-return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Electronic Gaming & Multimedia · market cap $84.7b. 17% off the 52-week high of $159.55. 32 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $161.73 (implying +22% upside).
Moat
Net margin 31% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 22% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 148% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $161.73 (32-analyst consensus) — fundamentals + valuation re-rating. 5 yr $236.79 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $351.26 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
NTES vs the Top Picks average
Pillar
NTES
Book avg
Diff
Quality
0.90
0.83
+0.07
Growth
0.76
0.91
-0.16
Value
0.44
0.76
-0.33
Averaged across the 30 names in today's Top Picks (mean score 82.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · NTES
Trend
-3.2 over 37 daily scores
From 58.5 (Jun 22) → 55.3 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · NTES
$
%
%
Shares to buy
15
Position size
$1,983
4.0% of portfolio
Stop price
$99.16
25% below $132.22
$ at risk if stopped
$495.82
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
NetEase, Inc. (NTES): score, valuation & FAQ
NetEase, Inc. (NTES) is a Electronic Gaming & Multimedia company that scores 54.8 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A-), FCF (B+) and P/E (B+). On valuation, NTES sits about 45% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -7% annual free-cash-flow growth over the next decade.
Is NTES a good stock to buy?
Bull Rankings scores NTES 54.8 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A-), FCF (B+) and P/E (B+). A score is a quantitative screen of NetEase, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does NTES score 54.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). NTES earns its highest marks on D/E (A-), FCF (B+) and P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is NTES overvalued or undervalued?
Based on $132.22, NTES sits about 45% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -7% annual free-cash-flow growth over the next decade. It trades at a 16.9x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in NTES?
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.