| Intrinsic Valuation of: NTES | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 8 | Market Cap | $72B | |||||
| 2021 | - | - (-) | P/E Ratio | 15 | Total Asset | $221B | |||||
| 2022 | $25B | - (-) | Net Income | $34B | Total Debt | $0 | |||||
| 2023 | $31B | 23.9% (15.5%) | EBITDA | $38B | Total Liab | $56B | |||||
| 2024 | $37B | 20.7% (18.6%) | Opr Margin | 31.82 | Debt/Equity | - | |||||
| 2025 | $49B | 29.9% (21.5%) | PreTax Margin | 31.82 | BV/Share | 240 | |||||
| 5Y Average FCF | $36B | 13.1% (18.5%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.48% | Historical US Bond Yield: | 4.40% | ||||||||
| Discount Rate (WACC): | 7.87% | Current US Bond Yield: | 3.48% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (13.1%) | ||||||||||
| 2026 | $51B | MBG Intrinsic Value | $69 | ||||||||
| 2027 | $56B | ||||||||||
| 2028 | $61B | ||||||||||
| 2029 | $65B | ||||||||||
| 2030 | $68B | ||||||||||
| 2031 | $70B | ||||||||||
| Terminal Value | $1,330B | Net Worth/Share | $259 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $1,127B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $47B | $1,840 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $0 | WACC | 6.5% | 2,058 | 2,234 | 2,455 | 2,737 | 3,114 | |||
| Equity Value | $1,174B | 7.3% | 1,768 | 1,890 | 2,038 | 2,219 | 2,448 | ||||
| Shares Outstanding | 638,128,105 | 8.2% | 1,548 | 1,637 | 1,741 | 1,865 | 2,016 | ||||
| 9.0% | 1,380 | 1,446 | 1,523 | 1,613 | 1,719 | ||||||
| DCF Intrinsic Value | $1,840 | 9.9% | 1,245 | 1,297 | 1,356 | 1,423 | 1,501 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||