NetEase Inc ADR (NTES) is undervalued and Roblox Corp (RBLX) is overvalued.
Against our estimates of intrinsic value, NTES trades at the wider discount: a margin of safety of +23%, against -510% for RBLX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.8% (average of 3 methods) values the shares at $153.57; the price of $118.76 is 23% below that value, and 77% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
A 1.0x revenue multiple, discounted for its losses, values the shares at $8.17; the price of $49.87 is 510% above that value.
Leak Score 21/100 on 7 of 12 signals
| Metric | NTES | RBLX |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $118.76 | $49.87 |
| Intrinsic value | $153.57 | $8.17 |
| Margin of safety | +23% | -510% |
| Leak Score | 100/100 (3/12) | 21/100 (7/12) |
| Market cap | $75.6B | $35.6B |
| Revenue growth, 5 years | 8.0% | 39.6% |
| Operating margin | 35.3% | -20.7% |
| Net margin | 27.9% | -17.6% |
| Return on equity | 20.4% | -396.1% |
| Debt to equity | 0.08 | 12.08 |
| P/E | 16.5x | — |
| Forward P/E | 11.1x | — |
| P/B | 3.1x | 234.3x |
| Dividend yield | 2.7% | — |