NetEase Cloud MusicHKSE:09899 -2.25%72 Interest Coverage is 7,800.86 as of Dec. 2025, which is 20% above its 10-year median of 6,514.64. GuruFocus rates HKSE:09899 with a GF Score™ of 72/100 and a GF Value™ of HK$107.05 (Fairly Valued). The stock has 3 warning signs investors should review. Among 315 Interactive Media companies, NetEase Cloud Music ranks better than 86.98% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. NetEase Cloud Music's
Operating Income
for the
six
months ended in Dec. 2025 was HK$842 Mil. NetEase Cloud Music's Interest Expense for the
six
months ended in Dec. 2025 was HK$-0 Mil.
NetEase Cloud Music's interest coverage for the quarter that ended in Dec. 2025 was 7,800.86.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. NetEase Cloud Music Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for NetEase Cloud Music's Interest Coverage or its related term are showing as below:
HKSE:09899'
s Interest Coverage Range Over the Past 10 Years
Min: 1205.47 Med: 6514.64 Max: No Debt
Current: 8276.02
HKSE:09899's Interest Coverage is ranked better than 86.98% of 315
companies
in the Interactive Media industry
Industry Median: 38.34
vs HKSE:09899: 8276.02
NetEase Cloud Music (HKSE:09899) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
NetEase Cloud Music Interest Coverage Related Terms
NetEase Cloud Music Interest Coverage Historical Data
* Premium members only.
The historical data trend for NetEase Cloud Music's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HKSE:09899 vs GOOGL, META, SPOT: Interest Coverage Comparison
For the Internet Content & Information subindustry, NetEase Cloud Music's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase Cloud Music's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NetEase Cloud Music's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (HKSE:09899) has a Interest Coverage of 7,800.86 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NetEase Cloud Music and its competitors. This is 20% above median its historical median of 6,514.64. Over the past decade, NetEase Cloud Music's Interest Coverage has ranged from 1,205.47 to 10,000.00. According to the industry distribution chart, NetEase Cloud Music ranks #41 out of 315 companies in the Interactive Media industry, placing it in the top 13%.
Is NetEase Cloud Music's Interest Coverage too high?
NetEase Cloud Music's current Interest Coverage of 7,800.86 is 20% above median its 10-year median of 6,514.64. Over the past 10 years, this metric has ranged from a low of 1,205.47 to a high of 10,000.00. The Interactive Media industry median Interest Coverage is 38.34. NetEase Cloud Music's value of 7,800.86 is 20246.5% above this industry median. Based on the distribution chart, NetEase Cloud Music ranks #41 out of 315 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, NetEase Cloud Music has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase Cloud Music's Interest Coverage compare to GOOGL and META?
According to the Interactive Media industry distribution chart, NetEase Cloud Music ranks #41 out of 315 companies for Interest Coverage. This places NetEase Cloud Music in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 38.34. NetEase Cloud Music's value of 7,800.86 is 20246.5% above this benchmark. Historically, NetEase Cloud Music's own Interest Coverage has ranged from 1,205.47 to 10,000.00 over the past decade. While the company's 10-year median is 6,514.64 vs. the industry median of 38.34, NetEase Cloud Music 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 Interest Coverage for an Interactive Media company?
The median Interest Coverage among Interactive Media companies is 38.34, based on 315 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase Cloud Music's current Interest Coverage of 7,800.86 is 20246.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NetEase Cloud Music and its competitors. For the Interactive Media industry, the median Interest Coverage is 38.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase Cloud Music's current Interest Coverage is 7,800.86, which is 20% above median its own 10-year median of 6,514.64. 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$107.05, compared to a current price of HK$117.30 — trading 9.6% above its estimated fair value. The current Interest Coverage is 7,800.86, which is 20% above median its 10-year median of 6,514.64 and 20246.5% above the Interactive Media industry median of 38.34. NetEase Cloud Music's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For NetEase Cloud Music (HKSE:09899), the current Interest Coverage is 7,800.86 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 overvalued.
The current stock price of HK$117.30 is trading 9.6% above its estimated GF Value™ of HK$107.05.
GuruFocus considers NetEase Cloud Music to be Fairly Valued.
Key valuation signals for HKSE:09899:
Interest Coverage: 7,800.86 (20% above median its 10-year median of 6,514.64)
GF Value™: HK$107.05 vs. price of HK$117.30 (9.6% above fair value)
Industry Position: 20246.5% above the Interactive Media median (#41 of 315)
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.
AddressNo. 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.
72GF Score
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