Zoetis Inc (ZTS) fair value: what the stock is really worth
We calculate from audited financials what Zoetis Inc is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
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Healthcare · US · Market cap $32.3B · ISIN US98978V1035
At a glance
ZIZoetis IncZTS · US
Price$72.86
Fair Value$104.88
Upside+44.0%
Quality79/100
A strong business, trading 31% below our fair value of $104.88.
As of Sep 10, 2026, the fair value of Zoetis Inc is $104.88 per share against a price of $72.86, so the fair value sits 44% above the price. A model estimate from reported figures, not an analyst target.
✓Healthy Growth (revenue 5y +7.2 %/yr)
✓Highly profitable · 28.0% net margin
!High debt · generates free cash flow
·2.79% dividend yield
✓Ranks above peers (9/15)
✓Wide moat 90/100
!Weak on future: 15 out of 100
Evidence: HighRange $58.90 to $160.05
Fair value as of: Sep 10, 2026
From 24 valuation models · updated yesterday
Share price −3.3% over the past month.
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69 individual criteria per stock, every one traceable See the method →
What matters now
The rarer combination: high quality (79/100) AND below fair value. That earns a closer look rather than a quick verdict.
The model range is unusually wide ($58.90 to $160.05). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 10, 2026.
How to read this chart
60‑month range $71.86 – $235.43 · fair‑value band $58.90 – $160.05 · the $72.86 price screens below the $104.88 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 10, 2026.
Zoetis Inc (ZTS) currently trades at $72.86, while our model-based Fair Value estimate is $104.88, implying the stock looks roughly 30.5% undervalued today. The Quality Score stands at 79/100 (high quality), in the Healthcare sector. Bull case: the Growth Earnings group reads highest at a median of $123.12 per share, and 14 of the 24 models we run sit above the $72.86 price. Bear case: the Earnings-Based group reads lowest at $41.00, and 10 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Zoetis Inc generated revenue of $9.5B at a net margin of 28.0%. Revenue grew 2.9% year over year. It earns a return on equity of 67.8%. Net debt stands at $7.2B. Fundamentals as of Sep 10, 2026
Scenario range: $58.90 (bear) to $160.05 (bull), the price of $72.86 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 56% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −48% fair-value upside, at 44%, ZTS screens cheaper than that median.
Fair Value models
Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then ($2.83 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘ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.Evidence
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Key figures & financial health
P/E ratio13.0as of Jun 6, 2026
P/S ratio3.68P/E × margin
EPS (TTM)$6.10price ÷ EPS = P/E 13.0
Dividend yield2.8%payout 33.3%
Net margin28.2%FY2025
Return on equity67.8%TTM
More key figures
Profitability
Return on assets (EBIT)21.7%avg 5y
Operating margin36.6%TTM
Growth
Revenue (TTM)$9.5BTTM
Revenue growth (YoY)+2.9%3y avg +5.4%
EPS growth (YoY)+6.0%
Balance sheet & cash flow
Free cash flow$2.3BFY2025
Net debt$7.2BFY2025 · ≈ 3.1 yrs of FCF
Figures from reported company fundamentals · as of Sep 10, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality79/100
Of which business quality 74
· Market factors (momentum, volatility) 24
Profitability83
Margins and returns on capital today
Quality Growth46
Are margins and returns improving?
Cashflow77
Earnings quality: real cash, not paper profit
Fin. Strength54
Balance sheet, leverage, solvency risk
Investment90
Disciplined investing over empire-building
Low Volatility63
Calm price path (market factor)
Momentum12
Price trend over the last 3–12 months (market factor)
52W Momentum1
Distance to the 52-week high (market factor)
Net Issuance100
Buybacks instead of dilution
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
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.
Full company description
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. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
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.
Growth Quality 84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$9.5B
Latest YoY
+2.3%
Avg. revenue growth/yr (3Y) ⓘ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.
+5.4%
Avg. revenue growth/yr (5Y) ⓘ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.
+7.2%
Avg. revenue growth/yr (16Y) ⓘ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.
+8.0%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+14.8%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+12.0%
Dividend yield2.8%
Trend ⓘ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.5Y 12.0% vs 10Y 17.9%, flattening
Operating margin (EBIT) ⓘ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.34.0% (2020) → 38.0% (2025) · rising
Revenue+5.0%/yr
FY21$7.8B
FY22$8.1B
FY23$8.5B
FY24$9.3B
FY25$9.5B
Net income+7.0%/yr
FY21$2.0B
FY22$2.1B
FY23$2.3B
FY24$2.5B
FY25$2.7B
Character of growth · EPS growth decomposed (2014-2025)+18.9 % p.a.
Revenue per share+8.5 %
of which total revenue +7.3 % · buybacks/dilution +1.1 %
EBIT margin+4.9 %
Tax rate+1.9 %
Residual (interest, one-offs)+2.5 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Drug Manufacturers - Specialty & Generic · 609 stocks
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.
Valuation
Quality Score79 · Top 25%
Fair Value upside+38% · Top 25%
Profitability
Return on equity (TTM)68% · Top 25%
Return on assets16% · Top 25%
Net margin (TTM)28% · Top 25%
Operating margin (TTM)37% · Top 25%
Growth and dividend
Revenue growth3% · Below median
Dividend yield (TTM)2.8% · Above median
Balance sheet
Debt / equity2.72× · Highest 25%
Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper
P/E (TTM)13.0× · Cheapest 25%
P/B9.51× · Priciest 25%
P/S (TTM)3.32× · Pricier than median
P/FCF13.9× · Priciest 25%
EV/EBITDA9.4× · Cheaper than median
PEG1.81× · Pricier than median
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Zoetis Inc deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
Implied FCF growth, 10 years+3.9 % per year
Achieved revenue growth, 5 years+7.2 % p.a.
Sector median revenue growth+4.4 %
FCF yield on price7.06 %
Discount rate (WACC) in the models8.6 %
The price demands less growth than the company recently delivered: even a weaker business would justify the price. Ranking of the largest stocks →
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
This stockSector peers
VALUE92· sector 1
FUTURE15· sector 22
PAST100· sector 25
HEALTH0· sector 97
DIVIDEND56· sector 29
Insider activity: 45/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
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10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Sep 10, 2026).
As of Sep 10, 2026, our model estimates a fair value of $104.88 versus a price of $72.86, about +44% upside (undervalued).
What is the fair value of ZTS?
Our model-based fair value for Zoetis Inc is $104.88 (as of Sep 10, 2026), built from audited fundamentals. The current price: $72.86.
What is the quality score of ZTS?
Zoetis Inc has a Quality Score of 79/100. 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 $104.88 (as of Sep 10, 2026) from 24 valuation models. Cautious scenario $58.90, optimistic scenario $160.05. 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 $104.88, about +44% upside versus a price of $72.86 (undervalued). Cautious scenario $58.90, optimistic scenario $160.05. 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 Sep 10, 2026).
What is the net profit margin of ZTS?
The net profit margin of Zoetis Inc is about 28.0%, meaning it keeps roughly 28.0% of revenue as net income. Based on the latest reported figures.
Does Zoetis Inc pay a dividend?
Zoetis Inc currently shows a dividend yield of about 2.79% relative to its recent price (as of Sep 10, 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 +3.9 % per year for ten years (discount rate 8.6 %, then 2 % perpetual growth). Over the last 5 years revenue grew +7.2 % per year. As of Sep 10, 2026.
What discount rate (WACC) does the fair value of ZTS use?
Our models discount Zoetis Inc at 8.6 %: a base by market capitalisation (large), damped by beta 0.74, country premium for USA. The same rate applies in all 26 models.
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 $104.88 per share (as of Sep 10, 2026), against a price of $72.86. 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 Sep 10, 2026, ZTS trades below its calculated fair value: price $72.86, fair value $104.88, a gap of about +44% (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 ($72.86); the fair value is what the company's own numbers justify ($104.88). For Zoetis Inc the two are $32.02 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 $32.3B (market capitalisation, as of Sep 10, 2026). Per share that is $72.86; our models calculate a fair value of $104.88 per share.
What do the bullish and bearish scenarios say about ZTS?
Our models span a range for Zoetis Inc: cautious scenario $58.90, base $104.88, optimistic $160.05 per share (as of Sep 10, 2026, price $72.86). 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 13.0 (as of Sep 10, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $104.88 is built from several models across several years. Other multiples: PEG 1.8, P/B 9.5, P/S 3.3, EV/EBITDA 9.4.
What is the PEG ratio of ZTS?
The PEG ratio of Zoetis Inc is 1.81 (P/E divided by earnings growth, as of Sep 10, 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 Sep 10, 2026): return on equity 67.8%, debt of 2.72 per unit of equity. They feed the Quality Score of 79/100, which measures business quality independently of the share price.
How far is ZTS from its 52-week high?
Zoetis Inc trades at $72.86, about 56% below its 52-week high of $166.91 and 1% above the low of $72.38 (as of Sep 10, 2026). Distance from the high says nothing about value: that is what the fair value of $104.88 is for.
Which stocks are comparable to Zoetis Inc?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Jiangsu Hengrui Pharmaceuticals Co, Sun 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 Sep 10, 2026: price $72.86, calculated fair value $104.88 (+44%), Quality Score 79/100, 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 $104.88, 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 32.6 % above its aggregate fair value. Zoetis Inc currently trades 44 % 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 <a href="/is-it-worth-investing-now/">is it worth investing now</a>.
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Zoetis Inc
ZTS · US