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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 261.37 (-0.23% today). The market cap for NetEase, Inc. is 34443.34, and is in the sector Technology, and Internet Software & Services industry. The target price for NetEase, Inc. is 252.3. Currently NetEase, Inc. is trading with a P/E of 25.2, and a forward P/E of 18.01. Average volume for NetEase, Inc. is 1123.46 and so far today it is 1662100.

Performance in the last year for NetEase, Inc. has been 99.11%. For EPS growth, NetEase, Inc. has seen a growth of 40.40%, and is looking to grow in the next year to 18.27%. More long term stats show that EPS growth has been 24.30% over the last five years and could be 3.49% for the next five years. NetEase, Inc. has seen sales growth quarter over quarter at 96.00%, with EPS growth quarter over quarter at 91.40%. The 20-day simple moving average is 14.95%, with the 200-day simple moving average coming to 48.63%.

Since the IPO date for NetEase, Inc. on the 6/30/2000, NetEase, Inc. has seen performance year to date to be 46.05%. With NetEase, Inc. trading at 261.37, the dividend yield is 1.19%, and the EPS is 10.37.

So could NetEase, Inc., be undervalued? Well as said before P/E is 25.2. The PEG is 7.22, P/S is 7.37 and the P/B is at 7.04. The P/cash is 8.22, with P/free cash flow at 26.93.

NetEase, Inc. ability to deal with debt shows that the current ratio is 2.9, 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 57.00%, an operating margin of 33.10% and a profit margin of 29.30%.Payout ratio for NetEase, Inc. is 0.00%. Return on assets come to 22.10% with return on investment coming to 19.00%.

Insider ownership for NetEase, Inc., is at 45.00% and institutional ownership comes to 62.60%. Outstanding shares are at 131.78. While shares float is 128.71. The float short is currently 1.89%, and short ratio is 2.17.

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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Tony Dabbs

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