The historical rank and industry rank for NetEase Cloud Music's ROE % or its related term are showing as below:
HKSE:09899'
s ROE % 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 ROE % was 24.21%. The lowest was -183.25%. And the median was 8.94%.
HKSE:09899's ROE % is ranked better than 87.27% of 534
companies
in the Interactive Media industry
Industry Median: 2.345
vs HKSE:09899: 23.59
NetEase Cloud Music (HKSE:09899) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
NetEase Cloud Music ROE % Related Terms
NetEase Cloud Music ROE % Historical Data
* Premium members only.
The historical data trend for NetEase Cloud Music's ROE % 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 Internet Content & Information subindustry, NetEase Cloud Music's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase Cloud Music's ROE % distribution charts can be found below:
* The bar in red indicates where NetEase Cloud Music's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
NetEase Cloud Music (HKSE:09899) has a ROE % of 13.88% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total 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 #68 out of 534 companies in the Interactive Media industry, placing it in the top 12.7%.
Is NetEase Cloud Music's ROE % too high?
NetEase Cloud Music's current ROE % of 13.88% is 55% above median its 10-year median of 8.94. The Interactive Media industry median ROE % is 2.35. NetEase Cloud Music's value of 13.88% is 491.9% above this industry median. Based on the distribution chart, NetEase Cloud Music ranks #68 out of 534 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 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NetEase Cloud Music's ROE % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, NetEase Cloud Music ranks #68 out of 534 companies for ROE %. This places NetEase Cloud Music in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 2.35. NetEase Cloud Music's value of 13.88% is 491.9% above this benchmark. While the company's 10-year median is 8.94 vs. the industry median of 2.35, 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 ROE % for an Interactive Media company?
The median ROE % among Interactive Media companies is 2.35, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase Cloud Music's current ROE % of 13.88% is 491.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NetEase Cloud Music and its competitors. For the Interactive Media industry, the median ROE % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase Cloud Music's current ROE % 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 Fairly Valued. The stock's GF Value™ is HK$107.00, compared to a current price of HK$113.10 — trading 5.7% above its estimated fair value. The current ROE % is 13.88%, which is 55% above median its 10-year median of 8.94 and 491.9% above the Interactive Media industry median of 2.35. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For NetEase Cloud Music (HKSE:09899), the current ROE % 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$113.10 is trading 5.7% above its estimated GF Value™ of HK$107.00.
GuruFocus considers NetEase Cloud Music to be Fairly Valued.
Key valuation signals for HKSE:09899:
ROE %: 13.88% (55% above median its 10-year median of 8.94)
GF Value™: HK$107.00 vs. price of HK$113.10 (5.7% above fair value)
Industry Position: 491.9% above the Interactive Media median (#68 of 534)
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.
74GF Score
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