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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
NetEase Cloud MusicHKSE:09899 -3.34%72 Return-on-Tangible-Equity is 13.88% as of Dec. 2025, which is 55% above its 10-year median of 8.94. GuruFocus rates HKSE:09899 with a GF Score™ of 72/100 and a GF Value™ of HK$108.32 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 490 Interactive Media companies, NetEase Cloud Music ranks better than 75.51% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. NetEase Cloud Music's annualized net income for the quarter that ended in Dec. 2025 was HK$1,906 Mil. NetEase Cloud Music's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$13,730 Mil. Therefore, NetEase Cloud Music's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 13.88%.
The historical rank and industry rank for NetEase Cloud Music's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:09899'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -183.25 Med: 8.94 Max: 24.21
Current: 23.59
During the past 8 years, NetEase Cloud Music's highest Return-on-Tangible-Equity was 24.21%. The lowest was -183.25%. And the median was 8.94%.
HKSE:09899's Return-on-Tangible-Equity is ranked better than 75.51% of 490
companies
in the Interactive Media industry
Industry Median: 5.225
vs HKSE:09899: 23.59
NetEase Cloud Music (HKSE:09899) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
NetEase Cloud Music Return-on-Tangible-Equity Related Terms
NetEase Cloud Music Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NetEase Cloud Music's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
HKSE:09899 vs GOOGL, META, SPOT: Return-on-Tangible-Equity Comparison
For the Internet Content & Information subindustry, NetEase Cloud Music's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase Cloud Music's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NetEase Cloud Music's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.88% mean?
NetEase Cloud Music (HKSE:09899) has a Return-on-Tangible-Equity of 13.88% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NetEase Cloud Music and its competitors. This is 55% above median its historical median of 8.94. According to the industry distribution chart, NetEase Cloud Music ranks #120 out of 490 companies in the Interactive Media industry, placing it in the top 24.5%.
Is NetEase Cloud Music's Return-on-Tangible-Equity too high?
NetEase Cloud Music's current Return-on-Tangible-Equity of 13.88% is 55% above median its 10-year median of 8.94. The Interactive Media industry median Return-on-Tangible-Equity is 5.23. NetEase Cloud Music's value of 13.88% is 165.6% above this industry median. Based on the distribution chart, NetEase Cloud Music ranks #120 out of 490 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 Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NetEase Cloud Music's Return-on-Tangible-Equity compare to GOOGL and META?
According to the Interactive Media industry distribution chart, NetEase Cloud Music ranks #120 out of 490 companies for Return-on-Tangible-Equity. This places NetEase Cloud Music in the top 25% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.23. NetEase Cloud Music's value of 13.88% is 165.6% above this benchmark. While the company's 10-year median is 8.94 vs. the industry median of 5.23, 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 Return-on-Tangible-Equity for an Interactive Media company?
The median Return-on-Tangible-Equity among Interactive Media companies is 5.23, based on 490 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase Cloud Music's current Return-on-Tangible-Equity of 13.88% is 165.6% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NetEase Cloud Music and its competitors. For the Interactive Media industry, the median Return-on-Tangible-Equity is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase Cloud Music's current Return-on-Tangible-Equity is 13.88%, which is 55% above median its own 10-year median of 8.94. 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 Modestly Overvalued. The stock's GF Value™ is HK$108.32, compared to a current price of HK$127.40 — trading 17.6% above its estimated fair value. The current Return-on-Tangible-Equity is 13.88%, which is 55% above median its 10-year median of 8.94 and 165.6% above the Interactive Media industry median of 5.23. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For NetEase Cloud Music (HKSE:09899), the current Return-on-Tangible-Equity is 13.88% 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$127.40 is trading 17.6% above its estimated GF Value™ of HK$108.32.
GuruFocus considers NetEase Cloud Music to be Modestly Overvalued.
Key valuation signals for HKSE:09899:
Return-on-Tangible-Equity: 13.88% (55% above median its 10-year median of 8.94)
GF Value™: HK$108.32 vs. price of HK$127.40 (17.6% above fair value)
Industry Position: 165.6% above the Interactive Media median (#120 of 490)
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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