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NetEase Cloud MusicHKSE:09899 +3.67%76 3-Year ROIIC % is 86.12 as of Dec. 2025, which is at its 10-year median of 86.12. GuruFocus rates HKSE:09899 with a GF Score™ of 76/100 and a GF Value™ of HK$109.11 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 526 Interactive Media companies, NetEase Cloud Music ranks better than 84.03% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
NetEase Cloud Music's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 86.12%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for NetEase Cloud Music's 3-Year ROIIC % or its related term are showing as below:
HKSE:09899's 3-Year ROIIC % is ranked better than 84.03% of 526
companies
in the Interactive Media industry
Industry Median: 3.485
vs HKSE:09899: 86.12
NetEase Cloud Music (HKSE:09899) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
NetEase Cloud Music 3-Year ROIIC % Related Terms
NetEase Cloud Music 3-Year ROIIC % Historical Data
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The historical data trend for NetEase Cloud Music's 3-Year ROIIC % 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.
HKSE:09899 vs GOOGL, META, SPOT: 3-Year ROIIC % Comparison
For the Internet Content & Information subindustry, NetEase Cloud Music's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase Cloud Music's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where NetEase Cloud Music's 3-Year ROIIC % falls into.
NetEase Cloud Music's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1772.615 (Dec. 2025) - -426.472 (Dec. 2022) )
/
( 6234.183 (Dec. 2025) - 3680.579 (Dec. 2022) )
=
2199.087
/
2553.604
=
86.12%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
NetEase Cloud Music (HKSE:09899) has a 3-Year ROIIC % of 86.12 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NetEase Cloud Music and its competitors. This is near median its historical median of 86.12. According to the industry distribution chart, NetEase Cloud Music ranks #84 out of 526 companies in the Interactive Media industry, placing it in the top 16%.
Is NetEase Cloud Music's 3-Year ROIIC % too high?
NetEase Cloud Music's current 3-Year ROIIC % of 86.12 is near median its 10-year median of 86.12. The Interactive Media industry median 3-Year ROIIC % is 3.49. NetEase Cloud Music's value of 86.12 is 2371.2% above this industry median. Based on the distribution chart, NetEase Cloud Music ranks #84 out of 526 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 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NetEase Cloud Music's 3-Year ROIIC % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, NetEase Cloud Music ranks #84 out of 526 companies for 3-Year ROIIC %. This places NetEase Cloud Music in the top 16% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.49. NetEase Cloud Music's value of 86.12 is 2371.2% above this benchmark. While the company's 10-year median is 86.12 vs. the industry median of 3.49, 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 3-Year ROIIC % for an Interactive Media company?
The median 3-Year ROIIC % among Interactive Media companies is 3.49, based on 526 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase Cloud Music's current 3-Year ROIIC % of 86.12 is 2371.2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NetEase Cloud Music and its competitors. For the Interactive Media industry, the median 3-Year ROIIC % is 3.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase Cloud Music's current 3-Year ROIIC % is 86.12, which is near median its own 10-year median of 86.12. 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 Undervalued. The stock's GF Value™ is HK$109.11, compared to a current price of HK$93.25 — trading 14.5% below its estimated fair value. The current 3-Year ROIIC % is 86.12, which is near median its 10-year median of 86.12 and 2371.2% above the Interactive Media industry median of 3.49. NetEase Cloud Music's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For NetEase Cloud Music (HKSE:09899), the current 3-Year ROIIC % is 86.12 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 undervalued.
The current stock price of HK$93.25 is trading 14.5% below its estimated GF Value™ of HK$109.11.
GuruFocus considers NetEase Cloud Music to be Modestly Undervalued.
Key valuation signals for HKSE:09899:
3-Year ROIIC %: 86.12 (near median its 10-year median of 86.12)
GF Value™: HK$109.11 vs. price of HK$93.25 (14.5% below fair value)
Industry Position: 2371.2% above the Interactive Media median (#84 of 526)
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.
76GF Score
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