NetEaseNETTF -0.98%94 Pretax Margin % is 43.70% as of Mar. 2026, which is 49% above its 10-year median of 29.40. GuruFocus rates NETTF with a GF Score™ of 94/100 and a GF Value™ of $24.76 (Fairly Valued). Among 553 Interactive Media companies, NetEase ranks better than 89.69% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. NetEase's Pre-Tax Income for the
three
months ended in Mar. 2026 was $1,940 Mil. NetEase's Revenue for the
three
months ended in Mar. 2026 was $4,439 Mil. Therefore, NetEase's pretax margin for the quarter that ended in Mar. 2026 was 43.70%.
The historical rank and industry rank for NetEase's Pretax Margin % or its related term are showing as below:
NETTF'
s Pretax Margin % Range Over the Past 10 Years
Min: 20.87 Med: 29.4 Max: 36.53
Current: 36.53
NETTF's Pretax Margin % is ranked better than 89.69% of 553
companies
in the Interactive Media industry
Industry Median: 2.23
vs NETTF: 36.53
NetEase (OTCPK:NETTF) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
NetEase Pretax Margin % Related Terms
NetEase Pretax Margin % Historical Data
* Premium members only.
The historical data trend for NetEase's Pretax 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.
NETTF vs EA, TTWO, RBLX: Pretax Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, NetEase's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where NetEase's Pretax 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 Pretax Margin % of 43.70% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on NetEase and its competitors. This is 49% above median its historical median of 29.40. Over the past decade, NetEase's Pretax Margin % has ranged from 20.87 to 36.53. According to the industry distribution chart, NetEase ranks #57 out of 553 companies in the Interactive Media industry, placing it in the top 10.3%.
Is NetEase's Pretax Margin % too high?
NetEase's current Pretax Margin % of 43.70% is 49% above median its 10-year median of 29.40. Over the past 10 years, this metric has ranged from a low of 20.87 to a high of 36.53. The Interactive Media industry median Pretax Margin % is 2.23. NetEase's value of 43.70% is 1859.6% above this industry median. Based on the distribution chart, NetEase ranks #57 out of 553 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 Pretax Margin % compare to EA and TTWO?
According to the Interactive Media industry distribution chart, NetEase ranks #57 out of 553 companies for Pretax Margin %. This places NetEase in the top 10% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.23. NetEase's value of 43.70% is 1859.6% above this benchmark. Historically, NetEase's own Pretax Margin % has ranged from 20.87 to 36.53 over the past decade. While the company's 10-year median is 29.40 vs. the industry median of 2.23, 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 Pretax Margin % for an Interactive Media company?
The median Pretax Margin % among Interactive Media companies is 2.23, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase's current Pretax Margin % of 43.70% is 1859.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on NetEase and its competitors. For the Interactive Media industry, the median Pretax Margin % is 2.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase's current Pretax Margin % is 43.70%, which is 49% above median its own 10-year median of 29.40. 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 Pretax Margin % is 43.70%, which is 49% above median its 10-year median of 29.40 and 1859.6% above the Interactive Media industry median of 2.23. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For NetEase (NETTF), the current Pretax Margin % is 43.70% 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:
Pretax Margin %: 43.70% (49% above median its 10-year median of 29.40)
GF Value™: $24.76 vs. price of $24.26 (2% below fair value)
Industry Position: 1859.6% above the Interactive Media median (#57 of 553)
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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