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NETTF (NetEase) Cyclically Adjusted FCF per Share : $0.93 (As of Mar. 2025)


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What is NetEase Cyclically Adjusted FCF per Share?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

NetEase's adjusted free cash flow per share for the three months ended in Mar. 2025 was $0.488. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $0.93 for the trailing ten years ended in Mar. 2025.

During the past 12 months, NetEase's average Cyclically Adjusted FCF Growth Rate was -100.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 17.50% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 17.50% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 19.20% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of NetEase was 33.20% per year. The lowest was 15.60% per year. And the median was 18.10% per year.

As of today (2025-05-17), NetEase's current stock price is $22.636. NetEase's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 was $0.93. NetEase's Cyclically Adjusted Price-to-FCF of today is 24.34.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of NetEase was 58.20. The lowest was 18.53. And the median was 33.99.


NetEase Cyclically Adjusted FCF per Share Historical Data

The historical data trend for NetEase's Cyclically Adjusted FCF per Share 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.

* Premium members only.

NetEase Cyclically Adjusted FCF per Share Chart

NetEase Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted FCF per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.54 0.64 0.71 0.86

NetEase Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cyclically Adjusted FCF per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.78 0.78 0.86 0.86 0.93

Competitive Comparison of NetEase's Cyclically Adjusted FCF per Share

For the Electronic Gaming & Multimedia subindustry, NetEase's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, NetEase's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where NetEase's Cyclically Adjusted Price-to-FCF falls into.


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NetEase Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, NetEase's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=0.488/115.1156*115.1156
=0.488

Current CPI (Mar. 2025) = 115.1156.

NetEase Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201506 0.024 99.500 0.028
201509 0.094 100.500 0.108
201512 0.130 100.600 0.149
201603 0.132 102.200 0.149
201606 0.139 101.400 0.158
201609 0.162 102.400 0.182
201612 0.214 102.600 0.240
201703 0.159 103.200 0.177
201706 0.077 103.100 0.086
201709 0.047 104.100 0.052
201712 0.139 104.500 0.153
201803 0.040 105.300 0.044
201806 0.012 104.900 0.013
201809 0.017 106.600 0.018
201812 0.219 106.500 0.237
201903 0.100 107.700 0.107
201906 0.174 107.700 0.186
201909 0.143 109.800 0.150
201912 0.197 111.200 0.204
202003 0.262 112.300 0.269
202006 0.159 110.400 0.166
202009 0.184 111.700 0.190
202012 0.340 111.500 0.351
202103 0.216 112.662 0.221
202106 0.172 111.769 0.177
202109 0.261 112.215 0.268
202112 0.360 113.108 0.366
202203 0.175 114.335 0.176
202206 0.276 114.558 0.277
202209 0.293 115.339 0.292
202212 0.373 115.116 0.373
202303 0.201 115.116 0.201
202306 0.295 114.558 0.296
202309 0.357 115.339 0.356
202312 0.482 114.781 0.483
202403 0.383 115.227 0.383
202406 0.253 114.781 0.254
202409 0.437 115.785 0.434
202412 0.539 114.893 0.540
202503 0.488 115.116 0.488

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


NetEase  (OTCPK:NETTF) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

NetEase's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=22.636/0.93
=24.34

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of NetEase was 58.20. The lowest was 18.53. And the median was 33.99.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


NetEase Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of NetEase's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


NetEase Business Description

Address
No. 599 Wangshang Road, NetEase Building, Binjiang District, Hangzhou, CHN, 310052
Founded in the late 1990s as an internet portal, NetEase has transformed into a leading force in the second-largest online game company gaming in China. While its initial success was built upon the massively multiplayer online role-playing game Fantasy Westward Journey, NetEase has expanded its portfolio with captivating franchises that resonate with both domestic and international players. Over the past decade, the company has created titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which maintain significant player bases today. Beyond in-house development, the company also collaborates with likes of Microsoft and Marvel to create and publish games based on renowned IPs, including World of Warcraft, Diablo Immortal, and Marvel Rivals.