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 19.13 is considered Undervalued compared with the five-year average of 31.67. The fair price of Zoetis Inc (ZTS) is between 172.22 to 237.66 according to relative valuation methord. Compared to the current price of 125.67 USD , Zoetis Inc is Undervalued By 27.03%.
Relative Value
Fair Zone
172.22-237.66
Current Price：125.67
27.03%
Undervalued
19.13
PE
1Y
3Y
5Y
14.16
EV/EBITDA
Zoetis Inc. (ZTS) has a current EV/EBITDA of 14.16. The 5-year average EV/EBITDA is 22.05. The thresholds are as follows: Strongly Undervalued below 14.67, Undervalued between 14.67 and 18.36, Fairly Valued between 25.75 and 18.36, Overvalued between 25.75 and 29.44, and Strongly Overvalued above 29.44. The current Forward EV/EBITDA of 14.16 falls within the Strongly Undervalued range.
15.95
EV/EBIT
Zoetis Inc. (ZTS) has a current EV/EBIT of 15.95. The 5-year average EV/EBIT is 24.99. The thresholds are as follows: Strongly Undervalued below 16.14, Undervalued between 16.14 and 20.57, Fairly Valued between 29.42 and 20.57, Overvalued between 29.42 and 33.84, and Strongly Overvalued above 33.84. The current Forward EV/EBIT of 15.95 falls within the Strongly Undervalued range.
5.67
PS
Zoetis Inc. (ZTS) has a current PS of 5.67. The 5-year average PS is 9.17. The thresholds are as follows: Strongly Undervalued below 5.77, Undervalued between 5.77 and 7.47, Fairly Valued between 10.87 and 7.47, Overvalued between 10.87 and 12.57, and Strongly Overvalued above 12.57. The current Forward PS of 5.67 falls within the Strongly Undervalued range.
17.58
P/OCF
Zoetis Inc. (ZTS) has a current P/OCF of 17.58. The 5-year average P/OCF is 29.96. The thresholds are as follows: Strongly Undervalued below 16.88, Undervalued between 16.88 and 23.42, Fairly Valued between 36.51 and 23.42, Overvalued between 36.51 and 43.05, and Strongly Overvalued above 43.05. The current Forward P/OCF of 17.58 falls within the Undervalued range.
20.81
P/FCF
Zoetis Inc. (ZTS) has a current P/FCF of 20.81. The 5-year average P/FCF is 36.42. The thresholds are as follows: Strongly Undervalued below 21.91, Undervalued between 21.91 and 29.16, Fairly Valued between 43.67 and 29.16, Overvalued between 43.67 and 50.93, and Strongly Overvalued above 50.93. The current Forward P/FCF of 20.81 falls within the Strongly Undervalued range.
Zoetis Inc (ZTS) has a current Price-to-Book (P/B) ratio of 10.30. Compared to its 3-year average P/B ratio of 15.68 , the current P/B ratio is approximately -34.34% higher. Relative to its 5-year average P/B ratio of 17.12, the current P/B ratio is about -39.85% higher. Zoetis Inc (ZTS) has a Forward Free Cash Flow (FCF) yield of approximately 4.04%. Compared to its 3-year average FCF yield of 2.50%, the current FCF yield is approximately 61.41% lower. Relative to its 5-year average FCF yield of 2.26% , the current FCF yield is about 78.54% lower.
10.30
P/B
Median3y
15.68
Median5y
17.12
4.04
FCF Yield
Median3y
2.50
Median5y
2.26
Competitors Valuation Multiple
The average P/S ratio for ZTS's competitors is 11.07, providing a benchmark for relative valuation. Zoetis Inc Corp (ZTS) exhibits a P/S ratio of 5.67, which is -48.81% above the industry average. Given its robust revenue growth of 0.50%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ZTS decreased by 26.47% 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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Frequently Asked Questions
Is Zoetis Inc (ZTS) currently overvalued or undervalued?
Zoetis Inc (ZTS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 19.13 is considered Undervalued compared with the five-year average of 31.67. The fair price of Zoetis Inc (ZTS) is between 172.22 to 237.66 according to relative valuation methord. Compared to the current price of 125.67 USD , Zoetis Inc is Undervalued By 27.03% .
What is Zoetis Inc (ZTS) fair value?
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. The fair price of Zoetis Inc (ZTS) is between 172.22 to 237.66 according to relative valuation methord.
How does ZTS's valuation metrics compare to the industry average?
The average P/S ratio for ZTS's competitors is 11.07, providing a benchmark for relative valuation. Zoetis Inc Corp (ZTS) exhibits a P/S ratio of 5.67, which is -48.81% above the industry average. Given its robust revenue growth of 0.50%, this premium appears unsustainable.
What is the current P/B ratio for Zoetis Inc (ZTS) as of Jan 08 2026?
As of Jan 08 2026, Zoetis Inc (ZTS) has a P/B ratio of 10.30. This indicates that the market values ZTS at 10.30 times its book value.
What is the current FCF Yield for Zoetis Inc (ZTS) as of Jan 08 2026?
As of Jan 08 2026, Zoetis Inc (ZTS) has a FCF Yield of 4.04%. This means that for every dollar of Zoetis Inc’s market capitalization, the company generates 4.04 cents in free cash flow.
What is the current Forward P/E ratio for Zoetis Inc (ZTS) as of Jan 08 2026?
As of Jan 08 2026, Zoetis Inc (ZTS) has a Forward P/E ratio of 19.13. This means the market is willing to pay $19.13 for every dollar of Zoetis Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Zoetis Inc (ZTS) as of Jan 08 2026?
As of Jan 08 2026, Zoetis Inc (ZTS) has a Forward P/S ratio of 5.67. This means the market is valuing ZTS at $5.67 for every dollar of expected revenue over the next 12 months.