Zoetis Inc (ZTS) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Zoetis Inc stock $112, price $82.11, upside +36.0%, quality 80 out of 100. Rating: undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $69.10 – $233.80 · fair‑value band $63.79 – $155.58 · the $82.11 price screens below the $111.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally.
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The company commercializes products primarily across companion animals comprising dogs, cats, and horses; and species, including livestock, such as cattle, swine, poultry, fish, and sheep.
It also offers parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics.
In addition, the company provides animal health diagnostics, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services, and blood glucose monitors; and other non-pharmaceutical products, which include nutritionals, as well as products and services in biodevices, genetic tests, and precision animal health.
It markets its products to veterinarians, livestock producers, and pet owners. The company has collaborated with Blacksmith Medicines, Inc. to discover and develop novel antibiotics for animal health. Zoetis Inc. was incorporated in 2012 and is headquartered in Parsippany, New Jersey.
Stock analysis
Zoetis Inc (ZTS) currently trades at $82.11, while our model-based Fair Value estimate is $111.63, implying the stock looks roughly 26% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $124.91 per share, and 12 of the 24 models we run sit above the $82.11 price.
Bear case: the Economic Profit group reads lowest at $33.42, and 12 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $63.79 (bear) to $155.58 (bull), the price of $82.11 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 80/100 (high quality), in the Healthcare sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Zoetis Inc reported revenue of $9.5B in FY2025 versus $7.8B in FY2021, a compound +5.0%/yr. Reported net income was $2.7B in FY2025, compounding +7.0%/yr from FY2021.
Key figures
Market cap $34.3B Large · P/E ratio 14.7 · P/S ratio 3.60 · EPS (TTM) $5.60 · Dividend yield 2.5% · Net margin 27.7% · Return on equity 64.9% · Return on assets (EBIT) 21.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 91 out of 100 (medium confidence).
What moves the price
The share trades about 37% below its 52-week high and 19% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −27% fair-value upside, at 36%, ZTS screens cheaper than that median.
Fair Value models
Bear$63.79Fair Value $111.63Bull$155.58
Price $82.11 · Upside +36.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($3.01 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 3 officers or directors bought shares worth $886,384, most recently on May 13, 2026. Buying cluster
BuyPaul BisaroDirector2,000 shares at $75.88$151,760May 13, 2026
BuyFrank A DamelioDirector6,650 shares at $75.39$501,344May 13, 2026
BuyMichael B McCallisterDirector3,000 shares at $77.76$233,280May 11, 2026
SaleKristin C PeckChief Executive Officer, Director20,000 shares at $127.05$2.5MFeb 17, 202610b5-1 plan
Plus 5 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+2.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.2%
Start year 2020 (pandemic). Over 10 years: +7.1% a year
Revenue growth 16 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+14.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.0%
Dividend (yield on the price)2.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.12.0% vs 17.9%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.34% → 38%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+4.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+1.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +2.5% a year for the price and −0.9% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: High margins and ROE indicate strength in animal health, yet thin evidence of a durable moat and high debt relative to equity remain the main weak points.
Main risk: Online pet pharmacies and big-box retailers could bypass traditional veterinary channels and force lower prices or reduced sales volumes for Zoetis companion animal products.
Bull case: Zoetis could strengthen direct relationships with veterinarians through diagnostics and services while shifting more products to prescription status to protect channels and margins.
Bear case: Widespread adoption of online and big-box channels combined with patent losses could commoditise key products and permanently reduce pricing power and sales through the core veterinary route.
Zoetis has seen companion animal sales weaken as fewer pet owners visit clinics and spend less, while competition forces more discounting in dermatology and parasiticides. Our models see the shares as undervalued after the drop. Will cost cuts and pipeline launches restore growth momentum in the core business, or will softer pricing keep margins under pressure?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 550 stocks
Beats the industry median on 10/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score80 · Top 25%
Fair Value upside+36.0% · Top 25%
Profitability
Return on equity (12 months)64.9% · Top 25%
Return on assets17.3% · Top 25%
Net margin (12 months)27.7% · Top 25%
Operating margin (12 months)40.7% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)−0.2% · Below median
Dividend yield (12 months)2.5% · Above median
Balance sheet
Debt / equity2.72× · Highest 25%
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
P/E (12 months)14.7× · Cheaper than median
P/B10.30× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)3.60× · Pricier than median
Price / free cash flow (fiscal year)15.0× · Cheaper than median
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Cite: Fair Value Calculator (2026). "Zoetis Inc Fair Value". https://www.fairvalue-calculator.com/stock/ZTS
Frequently asked questions
Is Zoetis Inc (ZTS) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $111.63 versus a price of $82.11, about +36% upside (undervalued).
What is the fair value of ZTS?
Our model-based fair value for Zoetis Inc is $111.63 (as of Nov 6, 2026), built from audited fundamentals. The current price: $82.11.
What is the quality score of ZTS?
Zoetis Inc has a Quality Score of 80/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Zoetis Inc (ZTS)?
Our model-based price target is the fair value of $111.63 (as of Nov 6, 2026) from 24 valuation models. Cautious scenario $63.79, optimistic scenario $155.58. It is a calculation from audited fundamentals, not an analyst target.
What is the Zoetis Inc stock forecast for 2026?
Our models put fair value at $111.63, about +36% upside versus a price of $82.11 (undervalued). Cautious scenario $63.79, optimistic scenario $155.58. The calculation is refreshed regularly with new filings.
What is the revenue of Zoetis Inc (ZTS)?
Zoetis Inc reported trailing-twelve-month revenue of about $9.5B (latest available figure, as of Nov 6, 2026).
Does Zoetis Inc pay a dividend?
Zoetis Inc currently shows a dividend yield of 2.51% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Zoetis Inc (ZTS)?
For today's price to be fair in a discounted-cash-flow model, Zoetis Inc would have to grow free cash flow by +4.9 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.2 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of ZTS use?
Our models discount Zoetis Inc at 8.5 %: a base by market capitalisation (large), damped by beta 0.68, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Zoetis Inc that is +4.9 % per year a year over ten years, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Zoetis Inc (ZTS) delivered so far?
Over the past 5 years revenue at Zoetis Inc grew +7.2 % a year. The price currently implies +4.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Zoetis Inc (ZTS) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into Zoetis Inc (+4.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Zoetis Inc (ZTS)?
The free-cash-flow yield on the price is 6.66 %: that much free cash flow Zoetis Inc produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Zoetis Inc (ZTS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Zoetis Inc it is $111.63 per share (as of Nov 6, 2026), against a price of $82.11. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Zoetis Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, ZTS trades below its calculated fair value: price $82.11, fair value $111.63, a gap of about +36% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ZTS?
No. The price is what the market pays today ($82.11); the fair value is what the company's own numbers justify ($111.63). For Zoetis Inc the two are $29.52 per share apart. That gap is exactly why we show both numbers side by side.
How much is Zoetis Inc worth?
The market values Zoetis Inc at about $34.3B (market capitalisation, as of Nov 6, 2026). Per share that is $82.11; our models calculate a fair value of $111.63 per share.
What do the bullish and bearish scenarios say about ZTS?
Our models span a range for Zoetis Inc: cautious scenario $63.79, base $111.63, optimistic $155.58 per share (as of Nov 6, 2026, price $82.11). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ZTS?
Zoetis Inc trades at a price-to-earnings ratio of 14.7 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $111.63 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 4 of the years ex one-offs: 36.3. Other multiples: PEG 15.4, P/B 10.3, P/S 3.6, EV/EBITDA 10.1.
What is the PEG ratio of ZTS?
The PEG ratio of Zoetis Inc is 15.45 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Zoetis Inc (ZTS)?
Balance-sheet figures for Zoetis Inc (as of Nov 6, 2026): return on equity 64.9%, debt of 2.72 per unit of equity. They feed the Quality Score of 80/100, which measures business quality independently of the share price.
How far is ZTS from its 52-week high?
Zoetis Inc trades at $82.11, about 37% below its 52-week high of $129.63 and 19% above the low of $69.10 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $111.63 is for.
Which stocks are comparable to Zoetis Inc?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Zoetis Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $82.11, calculated fair value $111.63 (+36%), Quality Score 80/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ZTS calculated?
We run Zoetis Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $111.63, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Zoetis Inc currently trades 26% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Zoetis Inc (ZTS)?
The closing price on Nov 5, 2026 was $82.11. Our model-based fair value is $111.63, about +36% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Zoetis Inc right now?
The rarer combination: high quality (80/100) AND below fair value. That earns a closer look rather than a quick verdict. A fairly wide model range ($63.79 to $155.58) leaves room in how you read the outcome.
Where does the earnings growth of Zoetis Inc (ZTS) come from?
Earnings per share at Zoetis Inc grew +18.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +8.5 %, EBIT margin +4.9 %, tax rate +1.9 %, residual (interest, one-offs) +2.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Zoetis Inc
How large is the market capitalisation of Zoetis Inc (ZTS)?
The market capitalisation of Zoetis Inc is $34.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Zoetis Inc (ZTS)?
The price-to-sales ratio of Zoetis Inc is 3.60 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Zoetis Inc (ZTS)?
Earnings per share at Zoetis Inc are $5.60 (price ÷ EPS = P/E 14.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Zoetis Inc (ZTS)?
The dividend yield of Zoetis Inc is 2.5% (payout 36.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Zoetis Inc (ZTS)?
The net margin of Zoetis Inc is 27.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Zoetis Inc (ZTS)?
The return on equity (ROE) of Zoetis Inc is 64.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Zoetis Inc (ZTS)?
On an EBIT basis the return on assets of Zoetis Inc is 21.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Zoetis Inc (ZTS)?
The operating margin of Zoetis Inc is 40.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Zoetis Inc (ZTS)?
Revenue at Zoetis Inc is growing −0.2% versus a year earlier (3y avg +5.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Zoetis Inc (ZTS)?
Earnings per share at Zoetis Inc are growing +1.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Zoetis Inc (ZTS) carry?
The net debt of Zoetis Inc is $7.2B (fiscal year 2025, ≈ 3.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026