NetEaseNETTF -0.98%94 FCF Margin % is 42.92% as of Mar. 2026, which is 55% above its 10-year median of 27.65. GuruFocus rates NETTF with a GF Score™ of 94/100 and a GF Value™ of $24.76 (Fairly Valued). Among 551 Interactive Media companies, NetEase ranks better than 95.1% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. NetEase's Free Cash Flow for the
three
months ended in Mar. 2026 was $1,905 Mil. NetEase's Revenue for the
three
months ended in Mar. 2026 was $4,439 Mil. Therefore, NetEase's FCF Margin % for the quarter that ended in Mar. 2026 was 42.92%.
The historical rank and industry rank for NetEase's FCF Margin % or its related term are showing as below:
NETTF'
s FCF Margin % Range Over the Past 10 Years
Min: 12.85 Med: 27.65 Max: 44.14
Current: 44.14
During the past 13 years, the highest FCF Margin % of NetEase was 44.14%. The lowest was 12.85%. And the median was 27.65%.
NETTF's FCF Margin % is ranked better than 95.1% of 551
companies
in the Interactive Media industry
Industry Median: 3.96
vs NETTF: 44.14
NetEase FCF Margin % Related Terms
NetEase FCF Margin % Historical Data
* Premium members only.
The historical data trend for NetEase's FCF Margin % 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.
For the Electronic Gaming & Multimedia subindustry, NetEase's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase's FCF Margin % distribution charts can be found below:
* The bar in red indicates where NetEase's FCF Margin % 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.
NetEase (NETTF) has a FCF Margin % of 42.92% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on NetEase and its competitors. This is 55% above median its historical median of 27.65. Over the past decade, NetEase's FCF Margin % has ranged from 12.85 to 44.14. According to the industry distribution chart, NetEase ranks #27 out of 551 companies in the Interactive Media industry, placing it in the top 4.9%.
Is NetEase's FCF Margin % too high?
NetEase's current FCF Margin % of 42.92% is 55% above median its 10-year median of 27.65. Over the past 10 years, this metric has ranged from a low of 12.85 to a high of 44.14. The Interactive Media industry median FCF Margin % is 3.96. NetEase's value of 42.92% is 983.8% above this industry median. Based on the distribution chart, NetEase ranks #27 out of 551 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase's FCF Margin % compare to EA and TTWO?
According to the Interactive Media industry distribution chart, NetEase ranks #27 out of 551 companies for FCF Margin %. This places NetEase in the top 5% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 3.96. NetEase's value of 42.92% is 983.8% above this benchmark. Historically, NetEase's own FCF Margin % has ranged from 12.85 to 44.14 over the past decade. While the company's 10-year median is 27.65 vs. the industry median of 3.96, 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 FCF Margin % for an Interactive Media company?
The median FCF Margin % among Interactive Media companies is 3.96, based on 551 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase's current FCF Margin % of 42.92% is 983.8% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on NetEase and its competitors. For the Interactive Media industry, the median FCF Margin % is 3.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase's current FCF Margin % is 42.92%, which is 55% above median its own 10-year median of 27.65. 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 FCF Margin % is 42.92%, which is 55% above median its 10-year median of 27.65 and 983.8% above the Interactive Media industry median of 3.96. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For NetEase (NETTF), the current FCF Margin % is 42.92% 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:
FCF Margin %: 42.92% (55% above median its 10-year median of 27.65)
GF Value™: $24.76 vs. price of $24.26 (2% below fair value)
Industry Position: 983.8% above the Interactive Media median (#27 of 551)
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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