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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 200 (-0.79% today). The market cap for NetEase, Inc. is 26761.07, and is in the sector Technology, and Internet Software & Services industry. The target price for NetEase, Inc. is 192.21. Currently NetEase, Inc. is trading with a P/E of 22.29, and a forward P/E of 2.36. Average volume for NetEase, Inc. is 1320.7 and so far today it is 224066.

Performance in the last year for NetEase, Inc. has been 40.32%. For EPS growth, NetEase, Inc. has seen a growth of 40.40%, and is looking to grow in the next year to 16.16%. 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 8.51%, with the 200-day simple moving average coming to 25.07%.

Since the IPO date for NetEase, Inc. on the 6/30/2000, NetEase, Inc. has seen performance year to date to be 12.24%. With NetEase, Inc. trading at 200, the dividend yield is 1.18%, and the EPS is 9.05.

So could NetEase, Inc., be undervalued? Well as said before P/E is 22.29. The PEG is 1.03, P/S is 6.55 and the P/B is at 5.66. The P/cash is 6.56, with P/free cash flow at 27.77.

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 59.70%. Outstanding shares are at 132.75. While shares float is 128.71. The float short is currently 2.95%, and short ratio is 2.87.

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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