ZTS Valuation

Zoetis Inc

Add to Watchlist

Advanced Chart

156.400

+1.61(1.040%)1D

Overview
Forecast
Valuation
Earnings

ZTS Relative Valuation

ZTS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ZTS is overvalued; if below, it's undervalued.

Historical Valuation

Zoetis Inc (ZTS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 23.65 is considered Undervalued compared with the five-year average of 33.09. The fair price of Zoetis Inc (ZTS) is between 194.07 to 255.28 according to relative valuation methord. Compared to the current price of 156.40 USD , Zoetis Inc is Undervalued By 19.41%.

Relative Value

Fair Zone

194.07-255.28

Current Price：156.40

19.41%

Undervalued

23.65

Trailing

Forward

17.30

EV/EBITDA

Zoetis Inc. (ZTS) has a current EV/EBITDA of 17.30. The 5-year average EV/EBITDA is 22.97. The thresholds are as follows: Strongly Undervalued below 16.05, Undervalued between 16.05 and 19.51, Fairly Valued between 26.43 and 19.51, Overvalued between 26.43 and 29.89, and Strongly Overvalued above 29.89. The current Forward EV/EBITDA of 17.30 falls within the Undervalued range.

19.45

EV/EBIT

Zoetis Inc. (ZTS) has a current EV/EBIT of 19.45. The 5-year average EV/EBIT is 25.98. The thresholds are as follows: Strongly Undervalued below 17.81, Undervalued between 17.81 and 21.90, Fairly Valued between 30.07 and 21.90, Overvalued between 30.07 and 34.15, and Strongly Overvalued above 34.15. The current Forward EV/EBIT of 19.45 falls within the Undervalued range.

7.04

Zoetis Inc. (ZTS) has a current PS of 7.04. The 5-year average PS is 9.53. The thresholds are as follows: Strongly Undervalued below 6.45, Undervalued between 6.45 and 7.99, Fairly Valued between 11.07 and 7.99, Overvalued between 11.07 and 12.60, and Strongly Overvalued above 12.60. The current Forward PS of 7.04 falls within the Undervalued range.

22.64

P/OCF

Zoetis Inc. (ZTS) has a current P/OCF of 22.64. The 5-year average P/OCF is 31.12. The thresholds are as follows: Strongly Undervalued below 19.19, Undervalued between 19.19 and 25.16, Fairly Valued between 37.08 and 25.16, Overvalued between 37.08 and 43.04, and Strongly Overvalued above 43.04. The current Forward P/OCF of 22.64 falls within the Undervalued range.

26.37

P/FCF

Zoetis Inc. (ZTS) has a current P/FCF of 26.37. The 5-year average P/FCF is 37.84. The thresholds are as follows: Strongly Undervalued below 24.65, Undervalued between 24.65 and 31.24, Fairly Valued between 44.44 and 31.24, Overvalued between 44.44 and 51.03, and Strongly Overvalued above 51.03. The current Forward P/FCF of 26.37 falls within the Undervalued range.

Zoetis Inc (ZTS) has a current Price-to-Book (P/B) ratio of 13.81. Compared to its 3-year average P/B ratio of 16.13 , the current P/B ratio is approximately -14.40% higher. Relative to its 5-year average P/B ratio of 17.91, the current P/B ratio is about -22.89% higher. Zoetis Inc (ZTS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.27%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.13% , the current FCF yield is about -100.00% lower.

13.81

P/B

Median3y

16.13

Median5y

17.91

3.22

FCF Yield

Median3y

2.27

Median5y

2.13

Competitors Valuation Multiple

The average P/S ratio for ZTS's competitors is 4.99, providing a benchmark for relative valuation. Zoetis Inc Corp (ZTS) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 4.19%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Regeneron Pharmaceuticals Inc

Alnylam Pharmaceuticals Inc

Bristol-Myers Squibb Co

2.10

0.56%

96.03B

Performance Decomposition

Market capitalization of ZTS decreased by 14.56% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 26.43 to 29.19.

The secondary factor is the Revenue Growth, contributed 4.19%to the performance.

Overall, the performance of ZTS in the past 1 year is driven by Margin Expansion. Which is more sustainable.

4.19%

2.36B → 2.46B

Revenue Growth

10.44%

26.43 → 29.19

Margin Expansion

-29.19%

37.97 → 26.88

P/E Change

-14.56%