NetEase Inc ADR (NTES) is undervalued and Take-Two Interactive Software Inc (TTWO) is overvalued.
Against our estimates of intrinsic value, NTES trades at the wider discount: a margin of safety of +23%, against -2159% for TTWO.
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
Its through-the-cycle earnings (6.3% median margin), capitalised at 9.5% with no growth, values the shares at $9.10; the price of $205.53 is 2159% above that value.
Leak Score 17/100 on 7 of 12 signals
| Metric | NTES | TTWO |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $118.76 | $205.53 |
| Intrinsic value | $153.57 | $9.10 |
| Margin of safety | +23% | -2159% |
| Leak Score | 100/100 (3/12) | 17/100 (7/12) |
| Market cap | $75.6B | $38.4B |
| Revenue growth, 5 years | 8.0% | 14.6% |
| Operating margin | 35.3% | -1.0% |
| Net margin | 27.9% | -4.8% |
| Return on equity | 20.4% | -9.0% |
| Debt to equity | 0.08 | 0.82 |
| P/E | 16.5x | — |
| Forward P/E | 11.1x | 20.1x |
| P/B | 3.1x | 10.7x |
| Dividend yield | 2.7% | — |