Zoetis Inc (ZTS) Fair Value & Analysis
Healthcare · US · Market cap $31.7B
Zoetis Inc
ZTS · US
Strengths
Risks
Fair value as of: Aug 13, 2026
From 24 valuation models · updated 13 days ago
Fair value updated Aug 13, 2026, revised from $106.89 to $104.88 (−1.9%) since Jul 12, 2026. Share price +2.6% over the past month.
A strong business, trading 26% below our fair value.
What runs behind every stock
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 Aug 13, 2026.
How to read this chart
60‑month range $71.86 – $235.43 · fair‑value band $58.90 – $160.05 · the $77.29 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 Aug 13, 2026.
Analysis
Zoetis Inc (ZTS) currently trades at $77.29, while our model-based Fair Value estimate is $104.88, implying the stock looks roughly 35.7% undervalued today. The Quality Score stands at 79/100 (high quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
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 Aug 13, 2026
Our scenario range runs from $58.90 (bear case) to $160.05 (bull case); at $77.29, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 54% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at 36%, ZTS screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 24 models by family
Widest divergence: Growth Earnings ($123.12) versus Asset-Based ($5.32). Highest evidence: Growth DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 74 · Market factors (momentum, volatility) 26
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.
of which total revenue +7.3 pp · buybacks/dilution +1.2 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
Watch ZTS: get an alert when its fair value changes →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Zoetis Wins Emergency Authorization for Simparica Trio, Can It Support a Slowing U.S. Business?
- Zoetis Earnings Reveal a Divided Business, But Can its Pipeline Restore Growth?
- Zoetis (ZTS) Stock Still Looks Cheap After a 62% Slide
- Is Zoetis’ Lowered 2026 Outlook and Simparica Trio EUA Altering The Investment Case For Zoetis (ZTS)?
Peer Group
Drug Manufacturers - Specialty & Generic · 633 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 Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper
Snowflake
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.
Insider activity: 45/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Merck KGaA MRK | €140.00 | €106.48 | -24% |
| Takeda Pharmaceutical Company TAK | $17.41 | $11.29 | -35% |
| Jiangsu Hengrui Pharmaceuticals Co 600276 | ¥53.76 | ¥25.94 | -52% |
| Galderma Group GALD | CHF 178.55 | CHF 55.07 | -69% |
| Sun Pharmaceutical Industries Limited SUNPHARMA | ₹1,944 | ₹989.50 | -49% |
| Haleon plc HLN | $9.80 | $7.62 | -22% |
| Teva Pharmaceutical Industries Limited TEVA | $36.74 | $15.37 | -58% |
| Sandoz Group SDZ | CHF 72.64 | CHF 48.68 | -33% |
| Hansoh Pharmaceutical Group 3692 | HK$33.50 | HK$16.14 | -52% |
| Divi's Laboratories Limited DIVISLAB | ₹8,525 | ₹1,228 | -86% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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