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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 208.49 (-1.24% today). The market cap for NetEase, Inc. is 27134.97, and is in the sector Technology, and Internet Software & Services industry. The target price for NetEase, Inc. is 222.2. Currently NetEase, Inc. is trading with a P/E of 23.07, and a forward P/E of 2.25. Average volume for NetEase, Inc. is 1235.34 and so far today it is 775200.

Performance in the last year for NetEase, Inc. has been 89.45%. For EPS growth, NetEase, Inc. has seen a growth of 40.40%, and is looking to grow in the next year to 17.13%. More long term stats show that EPS growth has been 24.30% over the last five years and could be 26.86% for the next five years. NetEase, Inc. has seen sales growth quarter over quarter at -2.00%, with EPS growth quarter over quarter at -4.30%. The 20-day simple moving average is 7.78%, with the 200-day simple moving average coming to 26.95%.

Since the IPO date for NetEase, Inc. on the 6/30/2000, NetEase, Inc. has seen performance year to date to be 16.08%. With NetEase, Inc. trading at 208.49, the dividend yield is 1.50%, and the EPS is 9.04.

So could NetEase, Inc., be undervalued? Well as said before P/E is 23.07. The PEG is 0.86, P/S is 6.65 and the P/B is at 5.54. The P/cash is 6.38, with P/free cash flow at 20.91.

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 57.30%, an operating margin of 38.50% and a profit margin of 34.10%.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 63.60%. Outstanding shares are at 130.15. While shares float is 128.71. The float short is currently 2.66%, and short ratio is 2.77.

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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Peter Clarke

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