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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 235.06 (2.17% today). The market cap for NetEase, Inc. is 31457.47, and is in the sector Technology, and Internet Software & Services industry. The target price for NetEase, Inc. is 226.67. Currently NetEase, Inc. is trading with a P/E of 21.98, and a forward P/E of 16.25. Average volume for NetEase, Inc. is 1120.86 and so far today it is 681272.

Performance in the last year for NetEase, Inc. has been 99.05%. For EPS growth, NetEase, Inc. has seen a growth of 40.40%, and is looking to grow in the next year to 15.89%. More long term stats show that EPS growth has been 24.30% over the last five years and could be 4.03% 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 15.31%, with the 200-day simple moving average coming to 40.31%.

Since the IPO date for NetEase, Inc. on the 6/30/2000, NetEase, Inc. has seen performance year to date to be 28.56%. With NetEase, Inc. trading at 235.06, the dividend yield is 1.36%, and the EPS is 10.47.

So could NetEase, Inc., be undervalued? Well as said before P/E is 21.98. The PEG is 5.45, P/S is 6.67 and the P/B is at 6.14. The P/cash is 7.44, with P/free cash flow at 24.37.

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 62.80%. Outstanding shares are at 136.73. While shares float is 128.71. The float short is currently 2.74%, and short ratio is 3.15.

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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