NetEaseNETTF -0.98%94 ROE % is 26.55% as of Mar. 2026, which is 17% above its 10-year median of 22.66. GuruFocus rates NETTF with a GF Score™ of 94/100 and a GF Value™ of $24.76 (Fairly Valued). Among 534 Interactive Media companies, NetEase ranks better than 85.39% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NetEase's annualized net income for the quarter that ended in Mar. 2026 was $6,195 Mil. NetEase's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $23,330 Mil. Therefore, NetEase's annualized ROE % for the quarter that ended in Mar. 2026 was 26.55%.
The historical rank and industry rank for NetEase's ROE % or its related term are showing as below:
NETTF'
s ROE % Range Over the Past 10 Years
Min: 13.23 Med: 22.66 Max: 39.5
Current: 22.16
During the past 13 years, NetEase's highest ROE % was 39.50%. The lowest was 13.23%. And the median was 22.66%.
NETTF's ROE % is ranked better than 85.39% of 534
companies
in the Interactive Media industry
Industry Median: 2.345
vs NETTF: 22.16
NetEase (OTCPK:NETTF) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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 ROE % Related Terms
NetEase ROE % Historical Data
* Premium members only.
The historical data trend for NetEase'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 Electronic Gaming & Multimedia subindustry, NetEase'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 ROE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase's ROE % distribution charts can be found below:
* The bar in red indicates where NetEase'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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
NetEase (NETTF) has a ROE % of 26.55% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NetEase and its competitors. This is 17% above median its historical median of 22.66. Over the past decade, NetEase's ROE % has ranged from 13.23 to 39.50. According to the industry distribution chart, NetEase ranks #78 out of 534 companies in the Interactive Media industry, placing it in the top 14.6%.
Is NetEase's ROE % too high?
NetEase's current ROE % of 26.55% is 17% above median its 10-year median of 22.66. Over the past 10 years, this metric has ranged from a low of 13.23 to a high of 39.50. The Interactive Media industry median ROE % is 2.35. NetEase's value of 26.55% is 1032.2% above this industry median. Based on the distribution chart, NetEase ranks #78 out of 534 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 ROE % compare to EA and TTWO?
According to the Interactive Media industry distribution chart, NetEase ranks #78 out of 534 companies for ROE %. This places NetEase in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 2.35. NetEase's value of 26.55% is 1032.2% above this benchmark. Historically, NetEase's own ROE % has ranged from 13.23 to 39.50 over the past decade. While the company's 10-year median is 22.66 vs. the industry median of 2.35, 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 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's current ROE % of 26.55% is 1032.2% 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 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's current ROE % is 26.55%, which is 17% above median its own 10-year median of 22.66. 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 ROE % is 26.55%, which is 17% above median its 10-year median of 22.66 and 1032.2% above the Interactive Media industry median of 2.35. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For NetEase (NETTF), the current ROE % is 26.55% 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:
ROE %: 26.55% (17% above median its 10-year median of 22.66)
GF Value™: $24.76 vs. price of $24.26 (2% below fair value)
Industry Position: 1032.2% above the Interactive Media median (#78 of 534)
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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