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 18.58 is considered Undervalued compared with the five-year average of 32.00. The fair price of Zoetis Inc (ZTS) is between 171.92 to 234.88 according to relative valuation methord. Compared to the current price of 120.46 USD , Zoetis Inc is Undervalued By 29.93%.
Relative Value
Fair Zone
171.92-234.88
Current Price：120.46
29.93%
Undervalued
18.25
PE
1Y
3Y
5Y
Trailing
Forward
13.82
EV/EBITDA
Zoetis Inc. (ZTS) has a current EV/EBITDA of 13.82. The 5-year average EV/EBITDA is 22.28. The thresholds are as follows: Strongly Undervalued below 15.08, Undervalued between 15.08 and 18.68, Fairly Valued between 25.87 and 18.68, Overvalued between 25.87 and 29.47, and Strongly Overvalued above 29.47. The current Forward EV/EBITDA of 13.82 falls within the Strongly Undervalued range.
15.56
EV/EBIT
Zoetis Inc. (ZTS) has a current EV/EBIT of 15.56. The 5-year average EV/EBIT is 25.23. The thresholds are as follows: Strongly Undervalued below 16.63, Undervalued between 16.63 and 20.93, Fairly Valued between 29.53 and 20.93, Overvalued between 29.53 and 33.83, and Strongly Overvalued above 33.83. The current Forward EV/EBIT of 15.56 falls within the Strongly Undervalued range.
5.52
PS
Zoetis Inc. (ZTS) has a current PS of 5.52. The 5-year average PS is 9.26. The thresholds are as follows: Strongly Undervalued below 5.96, Undervalued between 5.96 and 7.61, Fairly Valued between 10.90 and 7.61, Overvalued between 10.90 and 12.55, and Strongly Overvalued above 12.55. The current Forward PS of 5.52 falls within the Strongly Undervalued range.
17.11
P/OCF
Zoetis Inc. (ZTS) has a current P/OCF of 17.11. The 5-year average P/OCF is 30.24. The thresholds are as follows: Strongly Undervalued below 17.54, Undervalued between 17.54 and 23.89, Fairly Valued between 36.59 and 23.89, Overvalued between 36.59 and 42.94, and Strongly Overvalued above 42.94. The current Forward P/OCF of 17.11 falls within the Strongly Undervalued range.
20.25
P/FCF
Zoetis Inc. (ZTS) has a current P/FCF of 20.25. The 5-year average P/FCF is 36.72. The thresholds are as follows: Strongly Undervalued below 22.80, Undervalued between 22.80 and 29.76, Fairly Valued between 43.68 and 29.76, Overvalued between 43.68 and 50.64, and Strongly Overvalued above 50.64. The current Forward P/FCF of 20.25 falls within the Strongly Undervalued range.
Zoetis Inc (ZTS) has a current Price-to-Book (P/B) ratio of 10.02. Compared to its 3-year average P/B ratio of 15.82 , the current P/B ratio is approximately -36.62% higher. Relative to its 5-year average P/B ratio of 17.31, the current P/B ratio is about -42.09% 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 2.43%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.22% , the current FCF yield is about -100.00% lower.
9.85
P/B
Median3y
15.82
Median5y
17.31
4.15
FCF Yield
Median3y
2.43
Median5y
2.22
Competitors Valuation Multiple
The average P/S ratio for ZTS's competitors is 2.50, 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 0.50%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ZTS decreased by 26.10% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 28.98 to 30.04.
The secondary factor is the Revenue Growth, contributed 0.50%to the performance.
Overall, the performance of ZTS in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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