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NetEaseNETTF -0.98%94 Capex-to-Operating-Income is 0.05 as of Mar. 2026, which is 71% below its 10-year median of 0.17. GuruFocus rates NETTF with a GF Score™ of 94/100 and a GF Value™ of $24.63 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 231 Interactive Media companies, NetEase ranks better than 78.79% on this metric.
Capex-to-Operating-Income measures a company's investments in physical assets such as property, industrial buildings or equipment to its operating income.
Capex-to-Operating-Income assesses how much emphasis a company is placing upon investing in capital-intensive projects. The ratio is generally a good gauge to quantify how much focus on growth a company has. Typically, smaller companies that are still growing and expanding will have a higher Capex to Operating Income Ratio, since such businesses are likely investing more in physical assets. Lower ratios could indicate that a company has reached maturity and it is no longer pursuing aggressive growth.
NetEase Capex-to-Operating-Income Related Terms
NetEase Capex-to-Operating-Income Historical Data
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The historical data trend for NetEase's Capex-to-Operating-Income can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NETTF vs EA, TTWO, RBLX: Capex-to-Operating-Income Comparison
For the Electronic Gaming & Multimedia subindustry, NetEase's Capex-to-Operating-Income, along with its competitors' market caps and Capex-to-Operating-Income data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NetEase Capex-to-Operating-Income vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase's Capex-to-Operating-Income distribution charts can be found below:
* The bar in red indicates where NetEase's Capex-to-Operating-Income falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Capex-to-Operating-Income of 0.05 mean?
NetEase (NETTF) has a Capex-to-Operating-Income of 0.05 as of Mar. 2026. Capex to Operating Income ratio measures a company's investments in physical assets to its operating income. View historical data on NetEase and its competitors. This is 71% below median its historical median of 0.17. Over the past decade, NetEase's Capex-to-Operating-Income has ranged from 0.05 to 0.69. According to the industry distribution chart, NetEase ranks #49 out of 231 companies in the Interactive Media industry, placing it in the top 21.2%.
Is NetEase's Capex-to-Operating-Income too high?
NetEase's current Capex-to-Operating-Income of 0.05 is 71% below median its 10-year median of 0.17. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 0.69. The Interactive Media industry median Capex-to-Operating-Income is 0.26. NetEase's value of 0.05 is 80.8% below this industry median. Based on the distribution chart, NetEase ranks #49 out of 231 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, NetEase has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NetEase's Capex-to-Operating-Income compare to EA and TTWO?
According to the Interactive Media industry distribution chart, NetEase ranks #49 out of 231 companies for Capex-to-Operating-Income. This places NetEase in the top 21% of its industry — outperforming the majority of peers. The industry median Capex-to-Operating-Income is 0.26. NetEase's value of 0.05 is 80.8% below this benchmark. Historically, NetEase's own Capex-to-Operating-Income has ranged from 0.05 to 0.69 over the past decade. While the company's 10-year median is 0.17 vs. the industry median of 0.26, NetEase has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Capex-to-Operating-Income for an Interactive Media company?
The median Capex-to-Operating-Income among Interactive Media companies is 0.26, based on 231 companies in the industry. Companies in the top quartile (top 25%) have a Capex-to-Operating-Income significantly above this median, while those in the bottom quartile fall well below. However, Capex-to-Operating-Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase's current Capex-to-Operating-Income of 0.05 is 80.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Capex-to-Operating-Income mean?
A high Capex-to-Operating-Income can signal that a stock is expensive relative to its fundamentals. Capex to Operating Income ratio measures a company's investments in physical assets to its operating income. View historical data on NetEase and its competitors. For the Interactive Media industry, the median Capex-to-Operating-Income is 0.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase's current Capex-to-Operating-Income is 0.05, which is 71% below median its own 10-year median of 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetEase stock overvalued right now?
Based on GuruFocus' analysis, NetEase (NETTF) is currently considered Modestly Overvalued. The stock's GF Value™ is $24.63, compared to a current price of $24.26 — trading 1.5% below its estimated fair value. The current Capex-to-Operating-Income is 0.05, which is 71% below median its 10-year median of 0.17 and 80.8% below the Interactive Media industry median of 0.26. NetEase's overall GF Score™ is 94/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Capex-to-Operating-Income calculated?
Capex-to-Operating-Income is calculated from a company's financial statements. For NetEase (NETTF), the current Capex-to-Operating-Income is 0.05 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NetEase (NETTF) Overvalued in 2026?
Based on GuruFocus' analysis, NetEase stock appears to be undervalued.
The current stock price of $24.26 is trading 1.5% below its estimated GF Value™ of $24.63.
GuruFocus considers NetEase to be Modestly Overvalued.
Key valuation signals for NETTF:
Capex-to-Operating-Income: 0.05 (71% below median its 10-year median of 0.17)
GF Value™: $24.63 vs. price of $24.26 (1.5% below fair value)
Industry Position: 80.8% below the Interactive Media median (#49 of 231)
No single metric tells the full story. See the NETTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in the late 1990s as an internet portal, NetEase has evolved into China's second-largest online gaming company. Its early success was anchored by the massively multiplayer online role-playing game Fantasy Westward Journey, which laid the foundation for a durable franchise strategy. Over the past decade, the company has expanded its portfolio with successful titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which continue to maintain sizable and engaged player bases.In addition to its in-house development capabilities, NetEase partners with global IP holders such as Microsoft and Marvel to develop and publish titles based on established franchises, including World of Warcraft, Diablo Immortal, and Marvel Rivals, further strengthening its global presence.
94GF Score
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