NetEase Cloud Music (HKSE:09899) EBIT: HK$2,272 Mil (TTM As of Dec. 2025)


HKSE:09899 NetEase Cloud Music Inc HKSE:09899
74 GF Score
Price HK$102.90
GF Value HK$106.86
Valuation Fairly Valued
! 3 Warning Signs
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What is NetEase Cloud Music EBIT?

NetEase Cloud Music HKSE:09899 -2.46% 74 EBIT is HK$2,272 Mil as of Dec. 2025. GuruFocus rates HKSE:09899 with a GF Score™ of 74/100 and a GF Value™ of HK$106.86 (Fairly Valued). The stock has 3 warning signs investors should review.

NetEase Cloud Music's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was HK$1,104 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was HK$2,272 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. NetEase Cloud Music's annualized ROC % for the quarter that ended in Dec. 2025 was 24.17%. NetEase Cloud Music's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 7,881.81%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. NetEase Cloud Music's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 32.32%.

NetEase Cloud Music  (HKSE:09899) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

NetEase Cloud Music's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=1684.986 * ( 1 - 13.6% )/( (5812.038 + 6234.183)/ 2 )
=1455.827904/6023.1105
=24.17 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=16710.061 - 248.334 - ( 12059.631 - max(0, 3354.47 - 14004.159+12059.631))
=5812.038

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=18185.42 - 254.236 - ( 13450.112 - max(0, 3851.258 - 15548.259+13450.112))
=6234.183

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

NetEase Cloud Music's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2208.956/( ( (27.772 + max(-1717.673, 0)) + (28.28 + max(-1940.507, 0)) )/ 2 )
=2208.956/( ( 27.772 + 28.28 )/ 2 )
=2208.956/28.026
=7,881.81 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1226.306 + 0 + 408.73) - (248.334 + 0 + 3104.375)
=-1717.673

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1180.056 + 0 + 728.522) - (254.236 + 0 + 3594.849)
=-1940.507

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

NetEase Cloud Music's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=2272.035/7029.459
=32.32 %

* 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.

NetEase Cloud Music EBIT Related Terms

NetEase Cloud Music EBIT Historical Data

* Premium members only.

The historical data trend for NetEase Cloud Music's EBIT 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.

NetEase Cloud Music EBIT Chart

NetEase Cloud Music Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial -2,511.90 -227.96 840.02 1,676.77 2,284.50

NetEase Cloud Music Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 498.61 875.99 808.00 1,167.56 1,104.48

HKSE:09899 vs GOOGL, META, SPOT: EBIT Comparison

For the Internet Content & Information subindustry, NetEase Cloud Music's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 Cloud Music EV-to-EBIT vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, NetEase Cloud Music's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where NetEase Cloud Music's EV-to-EBIT falls into.


HKSE:09899
74GF Score
NetEase Cloud Music Inc HKSE:09899
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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NetEase Cloud Music EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$2,272 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of HK$2,272 Mil mean?
NetEase Cloud Music (HKSE:09899) has a EBIT of HK$2,272 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on NetEase Cloud Music.
Is NetEase Cloud Music's EBIT too high?
NetEase Cloud Music's current EBIT is HK$2,272 Mil. Overall, NetEase Cloud Music has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase Cloud Music's EBIT compare to GOOGL and META?
NetEase Cloud Music's EBIT of HK$2,272 Mil can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Interactive Media company?
A good EBIT depends on the Interactive Media industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on NetEase Cloud Music. NetEase Cloud Music's current EBIT is HK$2,272 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetEase Cloud Music stock overvalued right now?
Based on GuruFocus' analysis, NetEase Cloud Music (HKSE:09899) is currently considered Fairly Valued. The stock's GF Value™ is HK$106.86, compared to a current price of HK$102.90 — trading 3.7% below its estimated fair value. The current EBIT is HK$2,272 Mil. NetEase Cloud Music's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For NetEase Cloud Music (HKSE:09899), the current EBIT is HK$2,272 Mil as of Dec. 2025. 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 Cloud Music (HKSE:09899) Overvalued in 2026?

Based on GuruFocus' analysis, NetEase Cloud Music stock appears to be undervalued. The current stock price of HK$102.90 is trading 3.7% below its estimated GF Value™ of HK$106.86. GuruFocus considers NetEase Cloud Music to be Fairly Valued.

Key valuation signals for HKSE:09899:

  • EBIT: HK$2,272 Mil
  • GF Value™: HK$106.86 vs. price of HK$102.90 (3.7% below fair value)
  • GF Score™: 74/100 with 3 warning signs

No single metric tells the full story. See the HKSE:09899 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

NetEase Cloud Music Business Description

Address No. 353 Benjing Avenue, Room 1201, Block A, Hangzhou International Expo Center, Qianjiang Century City, Xiaoshan District, Zhejiang Province, Hangzhou, CHN
NetEase Cloud Music is China's second-largest music streaming platform, founded in 2013 as a subsidiary of NetEase. NetEase remains the controlling shareholder with a 59.4% stake. The company is headquartered in Hangzhou.The platform's business model revolves around a core music streaming service sold on a subscription basis, paired with a live streaming service where users purchase virtual items and gift them to performers.
74GF Score

Get the complete analysis for HKSE:09899

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$102.90
Price
HK$106.86
GF Value