NetEaseNETTF -0.98%94 Debt-to-EBITDA is 0.21 as of Mar. 2026, which is 76% below its 10-year median of 0.86. GuruFocus rates NETTF with a GF Score™ of 94/100 and a GF Value™ of $24.76 (Fairly Valued). Among 307 Interactive Media companies, NetEase ranks better than 62.21% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for NetEase's Debt-to-EBITDA or its related term are showing as below:
NETTF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.18 Med: 0.86 Max: 1.27
Current: 0.28
During the past 13 years, the highest Debt-to-EBITDA Ratio of NetEase was 1.27. The lowest was 0.18. And the median was 0.86.
NETTF's Debt-to-EBITDA is ranked better than 62.21% of 307
companies
in the Interactive Media industry
Industry Median: 0.67
vs NETTF: 0.28
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
NetEase Debt-to-EBITDA Related Terms
NetEase Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for NetEase's Debt-to-EBITDA 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: Debt-to-EBITDA Comparison
For the Electronic Gaming & Multimedia subindustry, NetEase's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where NetEase's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
NetEase (NETTF) has a Debt-to-EBITDA of 0.21 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on NetEase. This is 76% below median its historical median of 0.86. Over the past decade, NetEase's Debt-to-EBITDA has ranged from 0.18 to 1.27. According to the industry distribution chart, NetEase ranks #116 out of 307 companies in the Interactive Media industry, placing it in the top 37.8%.
Is NetEase's Debt-to-EBITDA too high?
NetEase's current Debt-to-EBITDA of 0.21 is 76% below median its 10-year median of 0.86. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 1.27. The Interactive Media industry median Debt-to-EBITDA is 0.67. NetEase's value of 0.21 is 68.7% below this industry median. Based on the distribution chart, NetEase ranks #116 out of 307 companies in the Interactive Media industry, which is above the industry midpoint. Overall, NetEase has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase's Debt-to-EBITDA compare to EA and TTWO?
According to the Interactive Media industry distribution chart, NetEase ranks #116 out of 307 companies for Debt-to-EBITDA. This puts NetEase in the upper half of its industry. The industry median Debt-to-EBITDA is 0.67. NetEase's value of 0.21 is 68.7% below this benchmark. Historically, NetEase's own Debt-to-EBITDA has ranged from 0.18 to 1.27 over the past decade. While the company's 10-year median is 0.86 vs. the industry median of 0.67, 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 Debt-to-EBITDA for an Interactive Media company?
The median Debt-to-EBITDA among Interactive Media companies is 0.67, based on 307 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase's current Debt-to-EBITDA of 0.21 is 68.7% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on NetEase. For the Interactive Media industry, the median Debt-to-EBITDA is 0.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase's current Debt-to-EBITDA is 0.21, which is 76% below median its own 10-year median of 0.86. 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 Fairly Valued. The stock's GF Value™ is $24.76, compared to a current price of $24.26 — trading 2% below its estimated fair value. The current Debt-to-EBITDA is 0.21, which is 76% below median its 10-year median of 0.86 and 68.7% below the Interactive Media industry median of 0.67. NetEase's overall GF Score™ is 94/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For NetEase (NETTF), the current Debt-to-EBITDA is 0.21 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 2% below its estimated GF Value™ of $24.76.
GuruFocus considers NetEase to be Fairly Valued.
Key valuation signals for NETTF:
Debt-to-EBITDA: 0.21 (76% below median its 10-year median of 0.86)
GF Value™: $24.76 vs. price of $24.26 (2% below fair value)
Industry Position: 68.7% below the Interactive Media median (#116 of 307)
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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