NetEase undervalued at 10x free cash flow with 24% upside amid growing international revenue.

NetEase is trading at a low valuation of 10 times free cash flow and is considered deeply undervalued with a potential 24% price increase to $150 per share. The company is expanding internationally, with overseas revenue now making up 10.1% of total revenue, driven by successful games like Marvel Rivals and Where Winds Meet. NetEase maintains strong financial health with a 38% free cash flow margin, $25.3 billion in cash, low debt, and improving gross margins, supporting dividends and reinvestment. While regulatory risks remain a concern, growing international revenue is expected to improve valuation multiples and reduce the current discount.