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Is this Large Market Cap Stock target price reasonable for NetEase, Inc. (NASDAQ:NTES)?

The company in question is, NetEase, Inc. (NASDAQ:NTES) currently with a stock price of 209.5 (-1.80% today). The market cap for NetEase, Inc. is 28075.29, and is in the sector Technology, and Internet Software & Services industry. The target price for NetEase, Inc. is 195.51. Currently NetEase, Inc. is trading with a P/E of 23.6, and a forward P/E of 2.5. Average volume for NetEase, Inc. is 1225.28 and so far today it is 2678297.

Performance in the last year for NetEase, Inc. has been 77.03%. For EPS growth, NetEase, Inc. has seen a growth of 40.40%, and is looking to grow in the next year to 16.02%. More long term stats show that EPS growth has been 24.30% over the last five years and could be 21.69% for the next five years. NetEase, Inc. has seen sales growth quarter over quarter at 116.30%, with EPS growth quarter over quarter at 93.40%. The 20-day simple moving average is 10.80%, with the 200-day simple moving average coming to 28.89%.

Since the IPO date for NetEase, Inc. on the 6/30/2000, NetEase, Inc. has seen performance year to date to be 18.78%. With NetEase, Inc. trading at 209.5, the dividend yield is 1.11%, and the EPS is 9.04.

So could NetEase, Inc., be undervalued? Well as said before P/E is 23.6. The PEG is 1.09, P/S is 6.88 and the P/B is at 6. The P/cash is 6.89, with P/free cash flow at 29.15.

NetEase, Inc. ability to deal with debt shows that the current ratio is 3, and the quick ratio is *TBA. This is with long term debt/equity at 0, and total debt/equity at 0.07.

In terms of margins, NetEase, Inc. has a gross margin of 57.30%, an operating margin of 38.00% and a profit margin of 34.60%.Payout ratio for NetEase, Inc. is 0.00%. Return on assets come to 23.90% with return on investment coming to 19.00%.

Insider ownership for NetEase, Inc., is at 45.00% and institutional ownership comes to 63.80%. Outstanding shares are at 131.61. While shares float is 128.71. The float short is currently 2.66%, and short ratio is 2.79.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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