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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 206.73 (1.10% today). The market cap for NetEase, Inc. is 27070.39, and is in the sector Technology, and Internet Software & Services industry. The target price for NetEase, Inc. is 191.18. Currently NetEase, Inc. is trading with a P/E of 22.78, and a forward P/E of 2.42. Average volume for NetEase, Inc. is 1356.33 and so far today it is 396427.

Performance in the last year for NetEase, Inc. has been 50.00%. For EPS growth, NetEase, Inc. has seen a growth of 40.40%, and is looking to grow in the next year to 15.45%. 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 15.86%, with the 200-day simple moving average coming to 31.58%.

Since the IPO date for NetEase, Inc. on the 6/30/2000, NetEase, Inc. has seen performance year to date to be 13.85%. With NetEase, Inc. trading at 206.73, the dividend yield is 1.16%, and the EPS is 8.98.

So could NetEase, Inc., be undervalued? Well as said before P/E is 22.78. The PEG is 1.05, P/S is 6.68 and the P/B is at 5.79. The P/cash is 6.69, with P/free cash flow at 28.3.

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 32.60% and a profit margin of 29.30%.Payout ratio for NetEase, Inc. is 0.00%. Return on assets come to 20.30% with return on investment coming to 19.00%.

Insider ownership for NetEase, Inc., is at 45.00% and institutional ownership comes to 58.70%. Outstanding shares are at 132.38. While shares float is 128.71. The float short is currently 3.38%, and short ratio is 3.21.

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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