Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin31.8%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin30.0%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.2 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital$128.2B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
A
Free Cash Flow$48.7B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income6.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$38.1B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit64.3%
Operating Margin31.8%
Net Margin30.0%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
64.3%▲
62.5%▲
60.9%▲
54.7%•
N/A
Operating Margin %
31.8%▲
28.1%▲
26.8%▲
20.3%•
N/A
Net Income %
30.0%▲
28.2%▼
28.4%▲
21.1%•
N/A
Diluted EPS
52.40▲
45.95▲
45.25▲
30.85•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$221.4B
$196.0B
$185.9B
$172.8B
N/A
Total Debt
$6.7B▼
$12.8B▼
$20.5B▼
$28.5B•
N/A
Working Capital
$128.2B▲
$103.7B▲
$88.9B▲
$74.8B•
N/A
Years to Pay Debt
0.20
0.43
0.70
1.40
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$48.7B▲
$37.5B▲
$31.1B▲
$25.1B•
N/A
Owner Earnings
$38.1B
$34.3B
$36.7B
$25.8B
N/A
CapEx % of Net Income
6.1%
7.4%
14.5%
13.0%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-6,564
93,381
161,974
336,413
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
38,126,720
31,391,168
29,590,681
20,861,619
Total Unusual Items
-44,426
610,716
1,173,723
1,625,183
Total Unusual Items Excluding Goodwill
-44,426
610,716
1,173,723
1,625,183
Net Income From Continuing Operation Net Minority Interest
33,759,800
29,697,609
29,416,552
19,712,736
Reconciled Depreciation
2,247,427
2,417,894
3,055,260
2,858,209
Reconciled Cost Of Revenue
40,223,939
39,488,152
40,404,765
43,729,683
EBITDA
38,082,294
32,001,884
30,764,404
22,486,802
EBIT
35,834,867
29,583,990
27,709,144
19,628,593
Net Interest Income
3,953,486
4,920,915
4,120,418
2,149,673
Interest Income
3,953,486
4,920,915
4,120,418
2,149,673
Normalized Income
33,797,662
29,180,274
28,404,803
18,423,966
Net Income From Continuing And Discontinued Operation
33,759,800
29,697,609
29,416,552
20,337,600
Total Expenses
76,790,940
75,711,246
75,759,015
76,867,216
Total Operating Income As Reported
35,834,867
29,583,990
27,709,144
19,628,593
Diluted Average Shares
643,635
646,120
650,406
659,203
Basic Average Shares
637,291
640,091
643,295
652,691
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
33,759,800
29,697,609
29,416,552
20,337,600
Net Income Common Stockholders
33,759,800
29,697,609
29,416,552
20,337,600
Net Income
33,759,800
29,697,609
29,416,552
20,337,600
Minority Interests
-1,037,984
-558,738
59,329
494,310
Net Income Including Noncontrolling Interests
34,797,784
30,256,347
29,357,223
19,843,290
Net Income Discontinuous Operations
0
0
624,864
0
Net Income Continuous Operations
34,797,784
30,256,347
29,357,223
19,218,426
Tax Provision
6,032,686
5,461,408
4,699,704
5,031,838
Pretax Income
40,830,470
35,717,755
34,056,927
24,250,264
Other Income Expense
1,042,117
1,212,850
2,227,365
2,471,998
Other Non Operating Income Expenses
1,086,543
602,134
1,053,642
846,815
Gain On Sale Of Security
-44,426
610,716
1,173,723
1,625,183
Net Non Operating Interest Income Expense
3,953,486
4,920,915
4,120,418
2,149,673
Interest Income Non Operating
3,953,486
4,920,915
4,120,418
2,149,673
Operating Income
35,834,867
29,583,990
27,709,144
19,628,593
Operating Expense
36,567,001
36,223,094
35,354,250
33,137,533
Research And Development
17,719,110
17,524,812
16,484,910
15,039,014
Selling General And Administration
18,847,891
18,698,282
18,869,340
18,098,519
Selling And Marketing Expense
14,619,702
14,147,657
13,969,460
13,402,721
General And Administrative Expense
4,228,189
4,550,625
4,899,880
4,695,798
Other Gand A
4,228,189
4,550,625
4,899,880
4,695,798
Gross Profit
72,401,868
65,807,084
63,063,394
52,766,126
Cost Of Revenue
40,223,939
39,488,152
40,404,765
43,729,683
Total Revenue
112,625,807
105,295,236
103,468,159
96,495,809
Operating Revenue
112,625,807
105,295,236
103,468,159
96,495,809
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
27,453
43,317
110,493
97,652
Ordinary Shares Number
3,192,111
3,167,959
3,210,783
3,223,624
Share Issued
3,219,565
3,211,276
3,321,276
3,321,276
Net Debt
2,641,668
6,129,296
Total Debt
6,729,742
12,817,257
20,483,482
28,462,361
Tangible Book Value
153,445,839
131,244,917
116,470,636
96,325,376
Invested Capital
166,680,536
150,918,654
143,953,936
132,261,985
Working Capital
128,246,521
103,656,999
88,850,101
74,774,352
Net Tangible Assets
153,445,839
131,244,917
116,470,636
96,325,376
Capital Lease Obligations
345,325
584,209
815,322
931,693
Common Stock Equity
160,296,119
138,685,606
124,285,776
104,731,317
Total Capitalization
160,296,119
139,113,603
124,713,773
108,386,281
Total Equity Gross Minority Interest
165,104,009
142,494,138
128,084,081
108,873,480
Minority Interest
4,807,890
3,808,532
3,798,305
4,142,163
Stockholders Equity
160,296,119
138,685,606
124,285,776
104,731,317
Gains Losses Not Affecting Retained Earnings
2,219,601
2,961,679
2,158,196
1,710,452
Other Equity Adjustments
2,219,601
2,961,679
2,158,196
1,710,452
Treasury Stock
1,518,573
4,473,063
12,694,364
10,910,754
Retained Earnings
149,755,000
130,333,397
112,214,583
91,074,675
Additional Paid In Capital
9,837,460
9,860,962
22,604,651
22,854,234
Capital Stock
2,631
2,631
2,710
2,710
Common Stock
2,631
2,631
2,710
2,710
Total Liabilities Net Minority Interest
56,311,051
53,497,412
57,840,897
63,887,505
Total Non Current Liabilities Net Minority Interest
3,942,095
3,829,755
3,998,413
7,058,658
Other Non Current Liabilities
1,072,724
816,041
715,284
604,934
Non Current Deferred Liabilities
2,637,258
2,173,117
2,299,303
2,126,120
Non Current Deferred Taxes Liabilities
2,637,258
2,173,117
2,299,303
2,126,120
Long Term Debt And Capital Lease Obligation
232,113
840,597
983,826
4,327,604
Long Term Capital Lease Obligation
232,113
412,600
555,829
672,640
Long Term Debt
427,997
427,997
3,654,964
1,275,140
Current Liabilities
52,368,956
49,667,657
53,842,484
56,828,847
Current Deferred Liabilities
26,482,257
19,644,002
16,986,642
15,811,958
Current Deferred Revenue
26,482,257
19,644,002
16,986,642
15,811,958
Current Debt And Capital Lease Obligation
6,497,629
11,976,660
19,499,656
24,134,757
Current Capital Lease Obligation
113,212
171,609
259,493
259,053
Current Debt
6,384,417
11,805,051
19,240,163
23,875,704
Line Of Credit
6,384,417
11,805,051
19,240,163
23,875,704
Payables And Accrued Expenses
19,389,070
18,046,995
17,356,186
16,882,132
Current Accrued Expenses
9,313,911
8,871,814
8,019,029
7,193,388
Payables
10,075,159
9,175,181
9,337,157
9,688,744
Other Payable
5,557,852
5,695,447
5,884,607
5,368,507
Total Tax Payable
3,874,143
2,759,185
2,571,534
2,813,096
Income Tax Payable
2,790,853
1,740,126
1,790,393
2,116,014
Accounts Payable
643,164
720,549
881,016
1,507,141
Total Assets
221,415,060
195,991,550
185,924,978
172,760,985
Total Non Current Assets
40,799,583
42,666,894
43,232,393
41,157,786
Other Non Current Assets
246,186
416,672
447,296
569,997
Non Current Prepaid Assets
135,183
143,005
179,399
174,357
Non Current Deferred Assets
2,831,423
1,113,435
1,560,088
1,480,789
Non Current Deferred Taxes Assets
2,831,423
1,113,435
1,560,088
1,480,789
Non Current Note Receivables
16,057
17,053
34,690
39,228
Non Current Accounts Receivable
516,946
1,243,512
1,538,274
1,738,969
Investments And Advances
21,457,883
23,231,356
22,833,187
21,518,198
Other Investments
196,081
319,894
545,163
246,073
Investmentin Financial Assets
16,745,170
16,505,295
16,178,784
16,032,883
Held To Maturity Securities
54,382
28,471
144,490
Available For Sale Securities
16,745,170
16,505,295
16,178,784
16,004,412
Long Term Equity Investment
4,516,632
6,406,167
6,109,240
5,239,242
Goodwill And Other Intangible Assets
6,850,280
7,440,689
7,815,140
8,405,941
Other Intangible Assets
4,994,960
5,585,396
5,959,746
6,239,455
Goodwill
1,855,320
1,855,293
1,855,394
2,166,486
Net PPE
8,745,625
9,061,172
8,824,319
7,230,307
Accumulated Depreciation
-7,713,665
-7,349,612
-7,101,319
-6,270,391
Gross PPE
16,459,290
16,410,784
15,925,638
13,500,698
Leases
144,467
197,230
311,156
304,365
Construction In Progress
985,107
1,696,018
3,675,879
1,587,413
Machinery Furniture Equipment
7,100,830
7,087,792
7,125,860
6,845,880
Buildings And Improvements
8,228,886
7,429,744
4,812,743
4,763,040
Current Assets
180,615,477
153,324,656
142,692,585
131,603,199
Other Current Assets
198,065
144,068
132,268
155,167
Assets Held For Sale Current
0
497
Restricted Cash
4,319,344
3,086,405
2,777,206
2,699,055
Prepaid Assets
5,606,973
3,795,633
3,132,647
3,875,950
Inventory
689,183
571,548
695,374
993,636
Receivables
7,191,127
8,146,194
9,234,097
6,420,039
Other Receivables
508,468
529,051
512,367
38,366
Accrued Interest Receivable
1,265,581
1,934,920
2,271,944
1,373,854
Loans Receivable
79,259
13,196
27,369
43,313
Accounts Receivable
5,337,819
5,669,027
6,422,417
5,002,872
Cash Cash Equivalents And Short Term Investments
162,610,785
137,580,808
126,720,993
117,459,352
Other Short Term Investments
115,442,881
86,197,498
105,292,091
92,570,352
Cash And Cash Equivalents
47,167,904
51,383,310
21,428,902
24,889,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
48,687,335
37,470,425
31,055,398
25,065,749
Repurchase Of Capital Stock
-639,335
-8,830,115
-5,234,294
-8,328,124
Repayment Of Debt
-11,595,012
-14,739,347
-8,219,472
-273,639
Issuance Of Debt
5,552,800
13,920,080
13,569,160
6,392,695
Capital Expenditure
-2,052,465
-2,206,388
-4,275,877
-2,643,484
Interest Paid Supplemental Data
387,982
489,622
779,872
588,381
Income Tax Paid Supplemental Data
6,427,207
5,189,585
4,895,752
5,092,391
End Cash Position
51,491,141
54,474,923
24,206,658
27,588,325
Beginning Cash Position
54,474,923
24,206,658
27,588,325
17,376,115
Effect Of Exchange Rate Changes
-382,454
10,752
-202,457
110,403
Changes In Cash
-2,601,328
30,257,513
-3,179,210
10,101,807
Financing Cash Flow
-20,159,784
-27,335,702
-21,467,054
-10,237,699
Cash Flow From Continuing Financing Activities
-20,159,784
-27,335,702
-21,467,054
-10,237,699
Net Other Financing Charges
103,808
136,006
86,159
-30,921
Cash Dividends Paid
-13,825,681
-11,165,338
-8,013,903
-6,723,667
Common Stock Dividend Paid
-13,825,681
-11,165,338
-8,013,903
-6,723,667
Net Common Stock Issuance
-639,335
-8,830,115
-5,234,294
-8,328,124
Common Stock Payments
-639,335
-8,830,115
-5,234,294
-8,328,124
Net Issuance Payments Of Debt
-5,798,576
-7,476,255
-8,305,016
4,845,013
Net Short Term Debt Issuance
243,636
-6,656,988
-13,654,704
-1,274,043
Short Term Debt Payments
-1,274,043
-2,739,342
Short Term Debt Issuance
4,447,586
Net Long Term Debt Issuance
-6,042,212
-819,267
5,349,688
6,119,056
Long Term Debt Payments
-11,595,012
-14,739,347
-8,219,472
-273,639
Long Term Debt Issuance
5,552,800
13,920,080
13,569,160
6,392,695
Investing Cash Flow
-33,181,344
17,916,402
-17,043,431
-7,369,727
Cash Flow From Continuing Investing Activities
-33,181,344
17,916,402
-17,043,431
-7,369,727
Net Other Investing Changes
-6,834,701
-814,888
-2,201,615
-323,779
Net Investment Purchase And Sale
-27,112,686
18,613,957
-10,284,248
-6,149,094
Sale Of Investment
165,501,145
182,230,891
116,796,479
103,198,563
Purchase Of Investment
-192,613,831
-163,616,934
-127,080,727
-109,347,657
Net Business Purchase And Sale
2,772,622
2,309,188
-291,993
1,705,163
Sale Of Business
3,041,482
2,822,585
152,564
2,411,070
Purchase Of Business
-268,860
-513,397
-444,557
-705,907
Net Intangibles Purchase And Sale
-987,089
-930,988
-1,974,323
-543,220
Purchase Of Intangibles
-987,089
-930,988
-1,974,323
-543,220
Net PPE Purchase And Sale
-1,019,490
-1,260,867
-2,291,252
-2,058,797
Sale Of PPE
45,886
14,533
10,302
41,467
Purchase Of PPE
-1,065,376
-1,275,400
-2,301,554
-2,100,264
Operating Cash Flow
50,739,800
39,676,813
35,331,275
27,709,233
Cash Flow From Continuing Operating Activities
50,739,800
39,676,813
35,331,275
27,709,233
Change In Working Capital
8,721,486
3,651,621
375,883
3,497,368
Change In Other Working Capital
5,435,054
2,022,196
1,161,861
385,396
Change In Payables And Accrued Expense
3,039,285
1,598,860
300,076
1,854,145
Change In Accrued Expense
1,869,491
1,530,848
1,166,673
1,899,580
Change In Payable
1,169,794
68,012
-866,597
-45,435
Change In Account Payable
-71,615
91,142
-559,419
447,666
Change In Tax Payable
1,112,836
187,788
-244,261
-917,614
Change In Income Tax Payable
1,112,836
187,788
-244,261
-917,614
Change In Prepaid Assets
100,708
-809,590
87,556
731,100
Change In Inventory
-117,634
123,780
296,764
-27,613
Change In Receivables
264,073
716,375
-1,470,374
554,340
Changes In Account Receivables
264,073
716,375
-1,470,374
554,340
Stock Based Compensation
3,647,662
3,882,939
3,242,810
3,174,160
Unrealized Gain Loss On Investment Securities
-2,267,858
-1,372,508
-949,523
2,761,694
Provisionand Write Offof Assets
367,513
68,934
61,146
61,393
Asset Impairment Charge
2,724,476
1,291,627
469,159
300,249
Deferred Tax
-1,254,125
320,726
131,437
489,670
Deferred Income Tax
-1,254,125
320,726
131,437
489,670
Depreciation Amortization Depletion
2,247,427
2,417,894
3,055,260
2,858,209
Depreciation And Amortization
2,247,427
2,417,894
3,055,260
2,858,209
Operating Gains Losses
1,755,435
-840,767
-412,120
-4,651,936
Earnings Losses From Equity Investments
1,537,721
155,568
-473,947
-1,259,941
Gain Loss On Investment Securities
-440,913
-272,415
-63,784
-1,791,355
Net Foreign Currency Exchange Gain Loss
688,913
-719,162
119,935
-1,604,260
Gain Loss On Sale Of PPE
-30,286
-4,758
5,676
3,620
Net Income From Continuing Operations
34,797,784
30,256,347
29,357,223
19,218,426
4/5
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $165.1B
Warren's Owner Earnings
$38.1B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/5 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$112.6B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
3.45x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $30.85 to $52.40 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+69.9% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $112.6Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 3.45xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $30.85 to $52.40 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what NTES is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
16.7%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
6.1%
7.4%
14.5%
13.0%
N/A
Repurchase of Capital Stock
-$639M
-$8.8B
-$5.2B
-$8.3B
N/A
Free Cash Flow
$48.7B▲
$37.5B▲
$31.1B▲
$25.1B•
N/A•
Warren's Owner Earnings
$38.1B
$34.3B
$36.7B
$25.8B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare NTES against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
NTES (NTES) fundamental analysis — Overall grade A based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 64.3%. Operating margin: 31.8%. Net margin: 30.0%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.