Market Pulse53Neutral

NetEase, Inc.(NTES) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$120.18

Last updated: Jul 24, 2026

Price vs Intrinsic Value

$120.18
Price
$312.06
Intrinsic Value
Undervalued by 160%MOS: $249.65

Fundamental Score

97/100
Bullish

Weighted across 6 signals

Narrative Score

52/100
Weak

No change vs previous

Trend Score

0/100
Unavailable

Trend data unavailable

Still researching stocks one at a time?

Intrinziq helps you:

  • Turn your stock-picking rules into repeatable strategies
  • Find better setups across hundreds of stocks automatically
  • Backtest your strategy before putting money to work
See How It Works

The intrinsic value of NetEase, Inc. (NTES) is estimated at $312.06 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $120.18, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.07% long-term growth rate and an 8.50% discount rate (calculated: 8.17%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of NetEase, Inc. (NTES) is estimated at $312.06 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $120.18, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.07% long-term growth rate and an 8.50% discount rate (calculated: 8.17%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$312.06
159.66% upside
20% margin of safety: $249.65
Years: 10Growth Rate: 7.07%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
117.3%
Cost of Capital (estimated)7%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

97/100
BullishWeighted across 6 signals
DCF Discount
159.7% discount to price
100
FCF Yield
10.3% trailing FCF yield
100
ROIC vs WACC
ROIC 117.3% vs WACC 7.0% (16.8x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
13.8% 5Y FCF CAGR
94
Strengths lead the score: DCF Discount, FCF Yield.

Narrative Details

52/100
Weak
Vs 6-Month Baseline:Low (17th pct)Weighted across 4 recent drivers
Trend: StableConfidence: 54%Updated: 1d ago
Sources: 19 (19 News)
Drivers(last 30 days)
14 news sentiment+0.1
3 regulatory scrutiny+0.0
Upgrade headlines+0.0
Downgrade headlines+0.0

Trend Details

0/100
NeutralRules-based daily model
Trend score unavailable for this ticker right now.

Investment Coach

Updating... 18d ago
BUYConfidence: 78%
Thesis
NetEase, Inc. is significantly undervalued with an estimated fair value 141.5% above its current price, supported by a strong fundamental score of 97 and a robust ROIC exceeding its cost of capital by 110.3 points. The company also demonstrates a healthy free cash flow yield of 9.3%, indicating strong financial performance and growth potential.
Key Risk
The absence of a narrative score and fresh sentiment coverage may obscure emerging risks or shifts in market perception.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Confirm ROIC stays above cost of capital over coming quarters.
  • Watch for updates in narrative signals to capture changes in market sentiment.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 7.07%5 Year CAGR: 13.89%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$7,937$7,444$6,187$5,851$4,484$4,142$4,163$3,035$2,999$2,029$2,456$1,345$957$806$650$668$400$370$318$218$257

How Intrinziq Estimates Fair Value

Intrinziq estimates NetEase, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

NetEase, Inc.Technology

NetEase, Inc., a prominent technology firm founded in 1997 and headquartered in Hangzhou, People's Republic of China, delivers a broad spectrum of online services both within China and across international markets. Its core operations encompass online gaming, music streaming, intelligent online learning solutions, and diverse internet content services. The company organizes its activities into several key divisions: Games and Related Value-Added Services; Youdao, focusing on educational technology; Cloud Music for its audio streaming offerings; and a segment for Innovative Businesses and Others. Within its gaming division, NetEase is responsible for creating and managing both PC and mobile games, and it also publishes titles licensed from external game developers. The Youdao segment provides a comprehensive suite of online learning and translation tools, including Youdao Dictionary, Youdao Translation, U-Dictionary, and Youdao Kids' Dictionary. It also manufactures smart devices like the Youdao Dictionary Pen, Smart Learning Pad, and Listening Pod. Furthermore, Youdao offers online courses, interactive educational applications, and advanced digitalization solutions for education, such as the Youdao Smart Learning Terminal for automated homework processing, Youdao Smart Cloud (a platform offering OCR capabilities to third parties), and Youdao Sports, a sports-focused educational system. Beyond these, NetEase manages an array of other popular internet services. These include NetEase Cloud Music, a significant music streaming platform; Yanxuan, an e-commerce platform specializing in private label products; the www.163.com portal and its companion mobile app, Wangyi Xinwen, which deliver news, sports, technology, fashion, and entertainment content; NetEase Mail, an email service; NetEase CC Live, a live streaming platform primarily dedicated to game broadcasting; and NetEase Pay, a secure payment system. The company, originally known as NetEase.com, Inc., officially adopted its current name, NetEase, Inc., in March 2012.