| Intrinsic Valuation of: NTES | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 7 | Market Cap | $85B | |||||
| 2021 | - | - (-) | P/E Ratio | 19 | Total Asset | $196B | |||||
| 2022 | $22B | - (-) | Net Income | $30B | Total Debt | $428M | |||||
| 2023 | $25B | 14.9% (4.3%) | EBITDA | $32B | Total Liab | $53B | |||||
| 2024 | $31B | 23.9% (15.5%) | Opr Margin | 0.28 | Debt/Equity | 0.00 | |||||
| 2025 | $37B | 20.7% (18.6%) | PreTax Margin | 28.10 | BV/Share | 207 | |||||
| 5Y Average FCF | $29B | 19.8% (12.8%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (19.8%) | ||||||||||
| 2026 | $45B | MBG Intrinsic Value | $63 | ||||||||
| 2027 | $54B | ||||||||||
| 2028 | $64B | ||||||||||
| 2029 | $77B | ||||||||||
| 2030 | $93B | ||||||||||
| 2031 | $111B | ||||||||||
| Terminal Value | $2,305B | Net Worth/Share | $225 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $1,834B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $51B | $2,977 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $428M | WACC | 7.3% | 2,605 | 2,803 | 3,042 | 3,336 | 3,706 | |||
| Equity Value | $1,885B | 7.4% | 2,582 | 2,776 | 3,009 | 3,296 | 3,657 | ||||
| Shares Outstanding | 633,198,016 | 7.4% | 2,559 | 2,749 | 2,977 | 3,258 | 3,609 | ||||
| 7.9% | 2,349 | 2,506 | 2,691 | 2,914 | 3,188 | ||||||
| DCF Intrinsic Value | $2,977 | 8.4% | 2,169 | 2,300 | 2,453 | 2,635 | 2,853 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||