Netease Stock Beta

NTES Stock

USD 88.64 1.11 1.27%

NetEase fundamentals help investors to digest information that contributes to NetEase's financial success or failures. It also enables traders to predict the movement of NetEase Stock. The fundamental analysis module provides a way to measure NetEase's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to NetEase stock.

Other Current Liab Total Assets

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NetEase Company Beta Analysis

NetEase's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Beta

Covariance

Variance

More About Beta | All Equity Analysis

Current NetEase Beta

0.8

Most of NetEase's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, NetEase is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

NetEase Beta Driver Correlations

Understanding the fundamental principles of building solid financial models for NetEase is extremely important. It helps to project a fair market value of NetEase Stock properly, considering its historical fundamentals such as Beta. Since NetEase's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of NetEase's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of NetEase's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Accounts Payable	Net Receivables	Total Liab	Total Current Assets	Common Stock	Current Deferred Revenue	Short Term Investments	Short Term Debt	Property Plant Equipment	Long Term Debt	Intangible Assets	Net Tangible Assets	Long Term Investments	Short Long Term Debt	Capital Surpluse	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.99	0.37	0.98	0.38	0.93	0.97	1.0	0.63	0.98	0.99	0.96	0.97	0.59	0.96	0.96	0.78	0.9	0.82	0.92	0.87	0.8
Total Stockholder Equity	0.99		0.26	1.0	0.31	0.92	0.93	0.99	0.66	0.98	0.99	0.92	0.95	0.56	0.94	0.97	0.81	0.85	0.83	0.92	0.89	0.85
Net Debt	0.37	0.26		0.23	0.53	0.36	0.55	0.36	0.02	0.27	0.4	0.55	0.41	0.19	0.43	0.27	0.14	0.63	0.23	0.23	0.11	-0.03
Retained Earnings	0.98	1.0	0.23		0.33	0.92	0.92	0.99	0.67	0.98	0.98	0.91	0.96	0.52	0.94	0.96	0.84	0.83	0.81	0.91	0.88	0.86
Accounts Payable	0.38	0.31	0.53	0.33		0.56	0.48	0.4	0.22	0.39	0.36	0.44	0.53	0.19	0.31	0.25	0.09	0.48	-0.1	0.14	0.06	-0.03
Net Receivables	0.93	0.92	0.36	0.92	0.56		0.92	0.94	0.6	0.97	0.92	0.88	0.97	0.41	0.89	0.86	0.74	0.81	0.65	0.77	0.72	0.71
Total Liab	0.97	0.93	0.55	0.92	0.48	0.92		0.97	0.54	0.93	0.97	0.99	0.96	0.61	0.95	0.91	0.69	0.96	0.75	0.87	0.8	0.68
Total Current Assets	1.0	0.99	0.36	0.99	0.4	0.94	0.97		0.64	0.98	0.99	0.96	0.97	0.58	0.95	0.96	0.78	0.89	0.8	0.91	0.87	0.8
Common Stock	0.63	0.66	0.02	0.67	0.22	0.6	0.54	0.64		0.65	0.63	0.51	0.57	0.18	0.55	0.56	0.55	0.45	0.48	0.55	0.57	0.62
Current Deferred Revenue	0.98	0.98	0.27	0.98	0.39	0.97	0.93	0.98	0.65		0.97	0.91	0.97	0.47	0.95	0.94	0.83	0.83	0.76	0.87	0.84	0.84
Short Term Investments	0.99	0.99	0.4	0.98	0.36	0.92	0.97	0.99	0.63	0.97		0.96	0.96	0.56	0.96	0.96	0.8	0.9	0.84	0.91	0.87	0.81
Short Term Debt	0.96	0.92	0.55	0.91	0.44	0.88	0.99	0.96	0.51	0.91	0.96		0.94	0.66	0.95	0.91	0.66	0.97	0.76	0.89	0.81	0.67
Property Plant Equipment	0.97	0.95	0.41	0.96	0.53	0.97	0.96	0.97	0.57	0.97	0.96	0.94		0.48	0.94	0.9	0.79	0.87	0.71	0.83	0.78	0.74
Long Term Debt	0.59	0.56	0.19	0.52	0.19	0.41	0.61	0.58	0.18	0.47	0.56	0.66	0.48		0.46	0.58	0.05	0.69	0.51	0.7	0.64	0.25
Intangible Assets	0.96	0.94	0.43	0.94	0.31	0.89	0.95	0.95	0.55	0.95	0.96	0.95	0.94	0.46		0.93	0.85	0.88	0.76	0.88	0.82	0.82
Net Tangible Assets	0.96	0.97	0.27	0.96	0.25	0.86	0.91	0.96	0.56	0.94	0.96	0.91	0.9	0.58	0.93		0.8	0.85	0.84	0.93	0.9	0.85
Long Term Investments	0.78	0.81	0.14	0.84	0.09	0.74	0.69	0.78	0.55	0.83	0.8	0.66	0.79	0.05	0.85	0.8		0.55	0.71	0.68	0.7	0.89
Short Long Term Debt	0.9	0.85	0.63	0.83	0.48	0.81	0.96	0.89	0.45	0.83	0.9	0.97	0.87	0.69	0.88	0.85	0.55		0.7	0.88	0.79	0.59
Capital Surpluse	0.82	0.83	0.23	0.81	-0.1	0.65	0.75	0.8	0.48	0.76	0.84	0.76	0.71	0.51	0.76	0.84	0.71	0.7		0.85	0.86	0.77
Net Invested Capital	0.92	0.92	0.23	0.91	0.14	0.77	0.87	0.91	0.55	0.87	0.91	0.89	0.83	0.7	0.88	0.93	0.68	0.88	0.85		0.98	0.83
Net Working Capital	0.87	0.89	0.11	0.88	0.06	0.72	0.8	0.87	0.57	0.84	0.87	0.81	0.78	0.64	0.82	0.9	0.7	0.79	0.86	0.98		0.87
Capital Stock	0.8	0.85	-0.03	0.86	-0.03	0.71	0.68	0.8	0.62	0.84	0.81	0.67	0.74	0.25	0.82	0.85	0.89	0.59	0.77	0.83	0.87

Click cells to compare fundamentals

In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Competition

Predict NetEase

In accordance with the recently published financial statements, NetEase has a Beta of 0.802. This is 37.34% lower than that of the Entertainment sector and significantly higher than that of the Communication Services industry. The beta for all United States stocks is notably lower than that of the firm.

NetEase Beta Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses NetEase's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of NetEase could also be used in its relative valuation, which is a method of valuing NetEase by comparing valuation metrics of similar companies.

NetEase is currently under evaluation in beta category among its peers.

NetEase Current Valuation Drivers

We derive many important indicators used in calculating different scores of NetEase from analyzing NetEase's financial statements. These drivers represent accounts that assess NetEase's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of NetEase's important valuation drivers and their relationship over time.

	2019	2020	2021	2022	2023	2024 (projected)
Market Cap	275.0B	413.1B	430.0B	327.0B	429.8B	451.3B
Enterprise Value	288.6B	423.5B	436.2B	329.6B	428.9B	450.3B

NetEase ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, NetEase's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to NetEase's managers, analysts, and investors.

Environmental

Governance

Social

NetEase Institutional Holders

Institutional Holdings refers to the ownership stake in NetEase that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of NetEase's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing NetEase's value.

		Shares
Lazard Asset Management Llc	2024-06-30	1.6 M
Hillhouse Capital Advisors, Ltd.	2024-06-30	1.4 M
Blackrock Inc	2024-06-30	1.4 M
T. Rowe Price Associates, Inc.	2024-06-30	1.3 M
Fisher Asset Management, Llc	2024-09-30	1.1 M
Capital Research & Mgmt Co - Division 3	2024-09-30	1.1 M
Amvescap Plc.	2024-06-30	1 M
Wellington Management Company Llp	2024-06-30	1 M
Renaissance Technologies Corp	2024-09-30	948.1 K
Ninety One Uk Limited	2024-09-30	6.4 M
Ubs Asset Mgmt Americas Inc	2024-09-30	6.3 M

As returns on the market increase, NetEase's returns are expected to increase less than the market. However, during the bear market, the loss of holding NetEase is expected to be smaller as well.

NetEase Fundamentals

	Return On Equity	0.23
	Return On Asset	0.1
	Profit Margin	0.27 %
	Operating Margin	0.27 %
	Current Valuation	40.25 B
	Shares Outstanding	644.49 M
	Shares Owned By Insiders	1.37 %
	Shares Owned By Institutions	12.71 %
	Number Of Shares Shorted	4.84 M
	Price To Earning	15.22 X
	Price To Book	3.09 X
	Price To Sales	0.53 X
	Revenue	103.47 B
	Gross Profit	52.77 B
	EBITDA	30.76 B
	Net Income	29.36 B
	Cash And Equivalents	116.24 B
	Cash Per Share	178.11 X
	Total Debt	20.48 B
	Debt To Equity	0.26 %
	Current Ratio	2.31 X
	Book Value Per Share	38.71 X
	Cash Flow From Operations	35.33 B
	Short Ratio	2.60 X
	Earnings Per Share	5.86 X
	Price To Earnings To Growth	1.40 X
	Target Price	820.66
	Number Of Employees	29.13 K
	Beta	0.8
	Market Capitalization	56.41 B
	Total Asset	185.92 B
	Retained Earnings	112.21 B
	Working Capital	88.85 B
	Current Asset	34.41 B
	Current Liabilities	11.67 B
	Annual Yield	0.03 %
	Five Year Return	1.15 %
	Net Asset	185.92 B

About NetEase Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze NetEase's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of NetEase using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of NetEase based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for NetEase Stock Analysis

When running NetEase's price analysis, check to measure NetEase's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NetEase is operating at the current time. Most of NetEase's value examination focuses on studying past and present price action to predict the probability of NetEase's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NetEase's price. Additionally, you may evaluate how the addition of NetEase to your portfolios can decrease your overall portfolio volatility.

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