NetEase Cloud Music (HKSE:09899) ROCE %: 15.96% (As of Dec. 2025)


HKSE:09899 NetEase Cloud Music Inc HKSE:09899
74 GF Score
Price HK$111.80
GF Value HK$106.87
Valuation Fairly Valued
! 3 Warning Signs
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What is NetEase Cloud Music ROCE %?

NetEase Cloud Music HKSE:09899 +3.14% 74 ROCE % is 15.96% as of Dec. 2025. GuruFocus rates HKSE:09899 with a GF Score™ of 74/100 and a GF Value™ of HK$106.87 (Fairly Valued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. NetEase Cloud Music's annualized ROCE % for the quarter that ended in Dec. 2025 was 15.96%.

NetEase Cloud Music  (HKSE:09899) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

NetEase Cloud Music ROCE % Related Terms

NetEase Cloud Music ROCE % Historical Data

* Premium members only.

The historical data trend for NetEase Cloud Music's ROCE % 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 ROCE % Chart

NetEase Cloud Music Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial -31.23 -2.55 9.28 16.54 18.06

NetEase Cloud Music Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.86 18.04 15.33 19.20 15.96
HKSE:09899
74GF Score
NetEase Cloud Music Inc HKSE:09899
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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NetEase Cloud Music ROCE % Calculation

NetEase Cloud Music's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=2284.496/( ( (14501.388 - 3536.221) + (18185.42 - 3851.258) )/ 2 )
=2284.496/( (10965.167+14334.162)/ 2 )
=2284.496/12649.6645
=18.06 %

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

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=2208.956/( ( (16710.061 - 3354.47) + (18185.42 - 3851.258) )/ 2 )
=2208.956/( ( 13355.591 + 14334.162 )/ 2 )
=2208.956/13844.8765
=15.96 %

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

* 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 ROCE % →
What does a ROCE % of 15.96% mean?
NetEase Cloud Music (HKSE:09899) has a ROCE % of 15.96% as of Dec. 2025.
Is NetEase Cloud Music's ROCE % too high?
NetEase Cloud Music's current ROCE % is 15.96%. The Interactive Media industry median ROCE % is 3.18. NetEase Cloud Music's value of 15.96% is 401.9% above this industry median. 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 ROCE % compare to GOOGL and META?
NetEase Cloud Music's ROCE % of 15.96% can be compared against companies in the Interactive Media industry. The industry median ROCE % is 3.18. NetEase Cloud Music's value of 15.96% is 401.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Interactive Media company?
The median ROCE % among Interactive Media companies is 3.18, based on 544 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase Cloud Music's current ROCE % of 15.96% is 401.9% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Interactive Media industry, the median ROCE % is 3.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase Cloud Music's current ROCE % is 15.96%. 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$106.87, compared to a current price of HK$111.80 — trading 4.6% above its estimated fair value. The current ROCE % is 15.96% and 401.9% above the Interactive Media industry median of 3.18. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For NetEase Cloud Music (HKSE:09899), the current ROCE % is 15.96% 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$111.80 is trading 4.6% above its estimated GF Value™ of HK$106.87. GuruFocus considers NetEase Cloud Music to be Fairly Valued.

Key valuation signals for HKSE:09899:

  • ROCE %: 15.96%
  • GF Value™: HK$106.87 vs. price of HK$111.80 (4.6% above fair value)
  • GF Score™: 74/100 with 3 warning signs
  • Industry Position: 401.9% above the Interactive Media median

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

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

HK$111.80
Price
HK$106.87
GF Value