NetEase Inc
HKEX:9999
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P/S
Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.
Price to Sales (P/S) ratio shows how much investors pay for each dollar of a company`s sales. It`s calculated by dividing the company`s market value by its total revenue.
Valuation Scenarios
If P/S returns to its 3-Year Average (4.4), the stock would be worth HK$174.4 (3% downside from current price).
| Scenario | P/S Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 4.6 | HK$179 |
0%
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| 3-Year Average | 4.4 | HK$174.4 |
-3%
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| 5-Year Average | 4.4 | HK$174.4 |
-3%
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| Industry Average | 3.8 | HK$150.25 |
-16%
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| Country Average | 2.8 | HK$108.39 |
-39%
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Forward P/S
Today’s price vs future revenue
| Today's Market Cap | Revenue | Forward P/S | ||
|---|---|---|---|---|
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HK$71.8B
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/ |
Jan 2026
¥112.6B
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HK$71.8B
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/ |
Dec 2026
¥123.4B
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= |
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HK$71.8B
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/ |
Dec 2027
¥134B
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= |
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HK$71.8B
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/ |
Dec 2028
¥143.6B
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= |
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HK$71.8B
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/ |
Dec 2029
¥157.1B
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= |
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HK$71.8B
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/ |
Dec 2030
¥170.6B
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HK$71.8B
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/ |
Dec 2031
¥181.3B
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HK$71.8B
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/ |
Dec 2032
¥192.5B
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= |
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HK$71.8B
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/ |
Dec 2033
¥204.5B
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Forward P/S shows whether today’s P/S still looks high or low once future revenue are taken into account.
Peer Comparison
| Market Cap | P/S | P/E | ||||
|---|---|---|---|---|---|---|
| CN |
|
NetEase Inc
HKEX:9999
|
73.1B HKD | 4.6 | 15.2 | |
| US |
A
|
Activision Blizzard Inc
LSE:0H8X
|
74.1B USD | 8.5 | 34.2 | |
| JP |
|
Nintendo Co Ltd
TSE:7974
|
8.9T JPY | 4.2 | 22.3 | |
| US |
|
Electronic Arts Inc
NASDAQ:EA
|
50.7B USD | 6.9 | 74.3 | |
| SG |
|
Sea Ltd
NYSE:SE
|
45.5B USD | 2 | 29.4 | |
| US |
|
Roblox Corp
NYSE:RBLX
|
39.9B USD | 8.1 | -37.1 | |
| US |
|
Take-Two Interactive Software Inc
NASDAQ:TTWO
|
39.9B USD | 6 | -10 | |
| CN |
Z
|
Zhejiang Century Huatong Group Co Ltd
SZSE:002602
|
130.6B CNY | 3.8 | 34.7 | |
| JP |
|
Konami Holdings Corp
TSE:9766
|
2.6T JPY | 5.5 | 29.8 | |
| JP |
N
|
Nexon Co Ltd
TSE:3659
|
2.1T JPY | 4.4 | 22.7 | |
| JP |
K
|
Konami Group Corp
XMUN:KOA
|
9B EUR | 3.5 | 19 |
Market Distribution
| Min | 0 |
| 30th Percentile | 1.5 |
| Median | 2.8 |
| 70th Percentile | 5.4 |
| Max | 5 034 353.9 |
Other Multiples
NetEase Inc
Glance View
In the bustling landscape of China's tech industry, NetEase Inc. has carved out a niche as a powerhouse of online services, primarily in the gaming sector. Founded in 1997 by entrepreneur William Ding, NetEase began its journey amidst the dawn of the internet era, initially focusing on email services. However, it wasn't long before the company pivoted towards online gaming, which has become its mainstay. Today, NetEase runs a robust portfolio of online PC and mobile games that have not only captivated audiences in China but have also reached international markets. Through licensing agreements and innovative in-house development, NetEase has created and operated a variety of popular titles, offering an engaging experience that has fostered a loyal fanbase. This stronghold in gaming is further bolstered by strategic partnerships with global gaming giants, such as Blizzard Entertainment, to distribute and develop notable games like "World of Warcraft" and "Overwatch" within China. Beyond gaming, NetEase has diversified its operations to include online education, e-commerce, and music streaming. Services like Youdao, their online learning platform, and Yanxuan, a self-operated e-commerce platform, have broadened NetEase’s revenue streams. The company also operates NetEase Cloud Music, which is a formidable competitor in China's digital music industry, offering streaming services akin to Spotify but with a focus on community and user interaction. This diversification strategy not only mitigates risks typically associated with the volatile gaming market but also capitalizes on the burgeoning demand for digital content and services in China. NetEase’s revenue model predominantly revolves around game sales, in-game purchases, and subscription-based services, supplemented by advertising and user monetization on its other platforms. This multifaceted approach has allowed NetEase to thrive and secure its position as a leading figure in the digital economy.
