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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
NetEaseBSP:NETE34 +4.96%90 Cyclically Adjusted Price-to-FCF is 22.70 as of Aug. 23, 2026, which is 28% below its 10-year median of 31.71. GuruFocus rates BSP:NETE34 with a GF Score™ of 90/100 and a GF Value™ of R$63.78 (Fairly Valued). The stock has 1 warning sign investors should review. Among 156 Interactive Media companies, NetEase ranks worse than 53.21% on this metric.
As of today (2026-08-23), NetEase's current share price is R$65.82. NetEase's Cyclically Adjusted FCF per Share for the quarter that ended in Jun. 2026 was R$2.90. NetEase's Cyclically Adjusted Price-to-FCF for today is 22.70.
The historical rank and industry rank for NetEase's Cyclically Adjusted Price-to-FCF or its related term are showing as below:
BSP:NETE34'
s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 18.53 Med: 31.71 Max: 58.2
Current: 22.97
During the past years, NetEase's highest Cyclically Adjusted Price-to-FCF was 58.20. The lowest was 18.53. And the median was 31.71.
BSP:NETE34's Cyclically Adjusted Price-to-FCF is ranked worse than 53.21% of 156
companies
in the Interactive Media industry
Industry Median: 21.055
vs BSP:NETE34: 22.97
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 adjusted free cash flow per share data for the three months ended in Jun. 2026 was R$1.161. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is R$2.90 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.
NetEase Cyclically Adjusted Price-to-FCF Related Terms
NetEase Cyclically Adjusted Price-to-FCF Historical Data
* Premium members only.
The historical data trend for NetEase's Cyclically Adjusted Price-to-FCF 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.
BSP:NETE34 vs EA, TTWO, RBLX: Cyclically Adjusted Price-to-FCF Comparison
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 Cyclically Adjusted Price-to-FCF vs 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.
Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.
NetEase's Cyclically Adjusted Price-to-FCF for today is calculated as
* 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.
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.
What does a Cyclically Adjusted Price-to-FCF of 22.70 mean?
NetEase (BSP:NETE34) has a Cyclically Adjusted Price-to-FCF of 22.70 as of Aug. 23, 2026. Cyclically Adjusted Price-to-FCF Ratio is the ratio of share price to a company's inflation-adjusted FCF per share over a 10-year period. View historical data on NetEase and its competitors. This is 28% below median its historical median of 31.71. Over the past decade, NetEase's Cyclically Adjusted Price-to-FCF has ranged from 18.53 to 58.20. According to the industry distribution chart, NetEase ranks #83 out of 156 companies in the Interactive Media industry, placing it in the top 53.2%.
Is NetEase's Cyclically Adjusted Price-to-FCF too high?
NetEase's current Cyclically Adjusted Price-to-FCF of 22.70 is 28% below median its 10-year median of 31.71. Over the past 10 years, this metric has ranged from a low of 18.53 to a high of 58.20. The Interactive Media industry median Cyclically Adjusted Price-to-FCF is 21.06. NetEase's value of 22.70 is 7.8% above this industry median. Based on the distribution chart, NetEase ranks #83 out of 156 companies in the Interactive Media industry, which is below the industry midpoint. Overall, NetEase has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase's Cyclically Adjusted Price-to-FCF compare to EA and TTWO?
According to the Interactive Media industry distribution chart, NetEase ranks #83 out of 156 companies for Cyclically Adjusted Price-to-FCF. This places NetEase in the lower half of its industry. The industry median Cyclically Adjusted Price-to-FCF is 21.06. NetEase's value of 22.70 is 7.8% above this benchmark. Historically, NetEase's own Cyclically Adjusted Price-to-FCF has ranged from 18.53 to 58.20 over the past decade. While the company's 10-year median is 31.71 vs. the industry median of 21.06, NetEase has consistently been above 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 Cyclically Adjusted Price-to-FCF for an Interactive Media company?
The median Cyclically Adjusted Price-to-FCF among Interactive Media companies is 21.06, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted Price-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted Price-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase's current Cyclically Adjusted Price-to-FCF of 22.70 is 7.8% above 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 Cyclically Adjusted Price-to-FCF mean?
A high Cyclically Adjusted Price-to-FCF can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted Price-to-FCF Ratio is the ratio of share price to a company's inflation-adjusted FCF per share over a 10-year period. View historical data on NetEase and its competitors. For the Interactive Media industry, the median Cyclically Adjusted Price-to-FCF is 21.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase's current Cyclically Adjusted Price-to-FCF is 22.70, which is 28% below median its own 10-year median of 31.71. 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 (BSP:NETE34) is currently considered Fairly Valued. The stock's GF Value™ is R$63.78, compared to a current price of R$65.82 — trading 3.2% above its estimated fair value. The current Cyclically Adjusted Price-to-FCF is 22.70, which is 28% below median its 10-year median of 31.71 and 7.8% above the Interactive Media industry median of 21.06. NetEase's overall GF Score™ is 90/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted Price-to-FCF calculated?
Cyclically Adjusted Price-to-FCF is calculated from a company's financial statements. For NetEase (BSP:NETE34), the current Cyclically Adjusted Price-to-FCF is 22.70 as of Aug. 23, 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 (BSP:NETE34) Overvalued in 2026?
Based on GuruFocus' analysis, NetEase stock appears to be overvalued.
The current stock price of R$65.82 is trading 3.2% above its estimated GF Value™ of R$63.78.
GuruFocus considers NetEase to be Fairly Valued.
Key valuation signals for BSP:NETE34:
Cyclically Adjusted Price-to-FCF: 22.70 (28% below median its 10-year median of 31.71)
GF Value™: R$63.78 vs. price of R$65.82 (3.2% above fair value)
Industry Position: 7.8% above the Interactive Media median (#83 of 156)
No single metric tells the full story. See the BSP:NETE34 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.
90GF Score
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Cyclically Adjusted Price-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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