Stock fact sheet · data as of
NetEase, Inc. (NTES): fair value, margin of safety and Wheel Score
Technology · Electronic Gaming & Multimedia · China · ADR · Defensive
Is NTES undervalued?
NTES has a margin of safety of 68%: the stock closed at 127.11 on 16 Oct 2026 against a GLS average fair value of 391.77. 6 of the 9 valuation models that produced a number sit above the price. Our screens 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: EPV gives 84.78 while 10 Cap gives 1,619.15. 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.
The nightly engine files NTES under Defensive: a low beta, a dividend and positive earnings.
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 | 212.68 | +67% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 109.09 | -14% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 246.43 | +94% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 93.59 | -26% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 252.15 | +98% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 1,619.15 | +1174% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 619.91 | +388% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 288.11 | +127% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 84.78 | -33% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 195.29 | +54% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 168.00 | +32% | 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 Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 9.1 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points 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 9.3%.
The dividend yield is 2.32% 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 | 9.1 / 10 | ROE | 21.0% |
| Debt / equity | 0.04 | ROA | 15.2% |
| Free-cash-flow yield | 9.3% | Payout ratio | 42% |
| Institutions | 1 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 89: Prime
NTES scores 89 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (14/15), the option premium on offer (20/20) and how easily the stock trades (17/20).
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 11,531 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 563k shares a day on a market cap of $81.0B, 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 gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 68% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 14 / 15 | moat 9.1/10 | |
| Premium | 20 / 20 | implied volatility 42% | |
| Stability | 17 / 20 | 563k shares/day, $81.0B cap, beta 0.77 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 19 Nov 2026 (before the open), 34 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
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. | 201.23 | 51.38 | -292% | 45Weak | $37.6B |
| RBLX Roblox Corporation | 47.54 | 49.71 | +4% | 45Weak | $34.0B |
| PLTK Playtika Holding Corp. | 2.05 | 24.19 | +92% | 45Weak | $782M |
| DDI DoubleDown Interactive Co., Ltd. | 13.73 | 135.05 | +90% | 39No options | $680M |
| GRVY Gravity Co., Ltd. | 66.71 | 44,676.27 | +100% | 39No options | $464M |
| SCFR Security First International Holdings, Inc. | 0.1273 | 0.0002 | -70610% | 15No options | $240M |
| GDEV GDEV Inc. | 10.47 | 109.19 | +90% | 39No options | $190M |
| FIRY Firy Inc. | 11.57 | - | - | 39Weak | $181M |
| CTW CTW Cayman Class A Ordinary Shares | 1.83 | 1.62 | -13% | 34No options | $114M |
| GCL GCL Global Holdings Ltd Ordinary Shares | 0.8324 | 9.88 | +92% | 39No options | $107M |
| MYPS PLAYSTUDIOS, Inc. | 4.18 | 22.06 | +81% | 45Weak | $43M |
| GAME GameSquare Holdings Inc. | 2.71 | - | - | 24No options | $35M |
Screen 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 same eight-rule screen, 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 127.11 the stock is 68% below the average fair value of 391.77 (data as of 16 Oct 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 89 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for NTES?
391.77 per share as of 16 Oct 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), 34 days from the data date of 16 Oct 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 462 listed contracts with 11,531 open interest across all expiries and implied volatility of 42% 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.