Stock fact sheet · data as of
NetEase, Inc. (NTES): fair value, margin of safety and Wheel Score
Ticker symbol NTES · Technology · Electronic Gaming & Multimedia · China · ADR · Blend
NTES is an American depositary share (ADR): the US listing of NetEase, Inc., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is NTES undervalued?
NTES has a margin of safety of 34%: the stock closed at 121.26 on 5 Nov 2026 against a GLS average fair value of 183.38. 5 of the 9 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: DDM gives 43.70 while Payback Time gives 389.36. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for NTES, so the nightly engine files it under Blend (value score 45, growth score 56, out of 100).
Nine valuation models for NTES
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 219.57 | +81% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 78.34 | -35% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 235.26 | +94% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 89.60 | -26% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 240.66 | +98% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 273.68 | +126% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 389.36 | +221% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 43.70 | -64% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 80.27 | -34% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 29.28 | -76% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 168.00 | +39% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - NTES passes 6 of the nine Piotroski tests, which passes the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 9.2 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are high - ROIC 20.2%, ROE 21.0%, ROA 15.2% - with debt at 0.04 times equity and a free-cash-flow yield of 9.2%.
The dividend yield is 2.45% at a payout ratio of 42%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Innovative businesses and others 54%, Youdao 47% (fiscal year FY2025).
Institutional ownership scores 1/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 20.2% |
|---|---|---|---|
| GLS Moat | 9.2 / 10 | ROE | 21.0% |
| Debt / equity | 0.04 | ROA | 15.2% |
| Free-cash-flow yield | 9.2% | Payout ratio | 42% |
| Institutions | 1 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 87: Prime
NTES scores 87 out of 100 on the Wheel Score, in the Prime band (85 and above): it passes all 9 Wheel Trade Filters and ranks strongly on value strong, premium strong, moat strong, health good, red flags good, option trading weak, stability strong. Prime stocks stand out among those that pass - the Sunday Scan is the top 10 by Wheel Score.
Implied volatility is 38% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 7,780 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 985k shares a day on a market cap of $77.2B, with a beta of 0.77 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 34% below fair value | |
| Premium | Strong | implied volatility 38% | |
| Moat | Strong | moat 9.2/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Good | Red Flags score 80/100 | |
| Option trading | Weak | 551 contracts a day, 7,780 open interest | |
| Stability | Strong | beta 0.77, $77.2B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
NetEase, Inc. reports earnings on 19 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Electronic Gaming & Multimedia
The 12 companies below are the closest to NetEase, Inc. by market cap within the Electronic Gaming & Multimedia industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TTWO Take-Two Interactive Software, Inc. | 208.90 | 51.38 | -307% | 39Weak | $39.1B |
| RBLX Roblox Corporation | 49.31 | 47.03 | -5% | 38Weak | $33.1B |
| PLTK Playtika Holding Corp. | 2.12 | 25.54 | +92% | 38Weak | $809M |
| DDI DoubleDown Interactive Co., Ltd. | 13.76 | 120.05 | +89% | 33No options | $682M |
| GRVY Gravity Co., Ltd. | 68.46 | 105.02 | +35% | 32No options | $476M |
| SCFR Security First International Holdings, Inc. | 0.1070 | 0.0002 | -59334% | 16No options | $202M |
| FIRY Firy Inc. | 11.59 | - | - | 19Weak | $181M |
| GDEV GDEV Inc. | 9.70 | 102.08 | +90% | 34No options | $176M |
| GCL GCL Global Holdings Ltd Ordinary Shares | 1.01 | 9.93 | +90% | 27No options | $129M |
| CTW CTW Cayman Class A Ordinary Shares | 1.72 | 8.79 | +80% | 29No options | $107M |
| MYPS PLAYSTUDIOS, Inc. | 4.47 | 22.03 | +80% | 34Weak | $46M |
| GAME GameSquare Holdings Inc. | 2.66 | - | - | 8No options | $35M |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about NTES
Is NTES undervalued right now?
By the GLS models, yes: at 121.26 the stock is 34% below the average fair value of 183.38 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of NTES and what does it mean?
NTES scores 87 out of 100 (Prime). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for NTES?
183.38 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does NetEase, Inc. report earnings next?
The next earnings report is due on 19 Nov 2026 (before the open), 14 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does NTES have listed options, and how liquid are they?
Yes. The nightly snapshot found 114 listed contracts with 7,780 open interest across all expiries and implied volatility of 38% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is NTES an ADR?
Yes. NTES is an American depositary share (ADR): the US listing of NetEase, Inc., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.