---
title: Zoetis (ZTS) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/zts
ticker: ZTS
as_of: 2026-10-17
sector: Healthcare
industry: Drug Manufacturers - Specialty & Generic
---
# Zoetis (ZTS)

Zoetis (ZTS) closed at $79.32 on Oct 16, 2026, undervalued by 37% vs its model value of $125.39 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $79.32 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $125.39 |
| Price vs model | undervalued by 37% vs model |
| Range of that model | $73.57 – $377.37 |
| Market value | $32.8B |
| P/E (fiscal 2025) | 13.2 |
| Net margin (fiscal 2025) | 28.2% |
| Free cash flow (fiscal 2025) | $2.3B |
| Dividend yield (trailing twelve months) | 2.63% |
| Beta | 0.74 |
| Cost of capital (WACC) | 7.54% |
| Business classification | Mature & Stable (Low/slowing growth (~5% recent), High profitability (28% net margin), Highly cyclical earnings, High leverage (D/E 2.7x), Strong FCF yield (7.0%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Lowest P/E | #47 | 13.2× | https://sweetvaluelab.com/lists/lowest-pe |
| Worst performing this year | #21 | −36.9% | https://sweetvaluelab.com/lists/worst-performing-this-year |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.63% |
| Dividends per share, last 12 months | $2.09 |
| Coverage | — |
| Raised | 12+ years in a row |
| Growth over 5 years | 17.1% a year |
| Latest payment | $0.53, ex-date Jul 20, 2026, paid Sep 1, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Jul 20, 2021 | $0.95 |
| To Jul 20, 2022 | $1.23 |
| To Jul 20, 2023 | $1.45 |
| To Jul 18, 2024 | $1.67 |
| To Jul 18, 2025 | $1.93 |
| Trailing twelve months (to Jul 20, 2026) | $2.09 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $125.39 | $73.57 | $377.37 |
| DCF · Perpetuity growth · 10y | cross check | $130.76 | $79.44 | $376.50 |
| DCF · EBITDA exit · 5y | cross check | $134.52 | $93.96 | $182.30 |
| DCF · EBITDA exit · 10y | cross check | $138.32 | $95.01 | $196.04 |
| P/E · peers | cross check | $204.52 | $156.31 | $299.49 |
| P/E · own history | cross check | $215.28 | $170.39 | $237.36 |
| PEG | sanity check | $52.89 | $52.89 | $52.89 |
| EV/EBITDA · peers | cross check | $148.43 | $111.38 | $208.49 |
| EV/Revenue · peers | cross check | $91.82 | $70.90 | $151.42 |
| Earnings power value | cross check | $49.62 | $38.88 | $65.70 |
| Dividend discount | cross check | $61.94 | $41.37 | $98.81 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 9, 2026 | PECK KRISTIN C | Chief Executive Officer | Grant / award | 720.144 | $18,846.2 |
| Oct 9, 2026 | Esch Kevin | Executive Vice President | Grant / award | 360.073 | $9,423.1 |
| Oct 9, 2026 | Driscoll Rimma | Executive Vice President | Grant / award | 277.772 | $7,269.3 |
| Oct 9, 2026 | FULLER JULIE | Executive Vice President | Grant / award | 367.788 | $9,625 |
| Oct 9, 2026 | Sarbaugh Keith | Executive Vice President | Grant / award | 303.49 | $7,942.3 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 13, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1555280/000155528026000044/zts-20261008.htm |
| Oct 8, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1555280/000155528026000042/zts-20261008.htm |
| Aug 6, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1555280/000155528026000040/zts-20260630.htm |
| Aug 6, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1555280/000155528026000038/zts-20260806.htm |
| Aug 6, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1555280/000119312526338080/d166736d8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Ruane Cunniff | 2026-06-30 | 2,353,300 | $169.1M |
| Tweedy Browne | 2026-06-30 | 556,056 | $40.0M |
| Mairs & Power | 2026-06-30 | 467,515 | $33.6M |
| Polen Capital | 2026-06-30 | 320,420 | $23.0M |

7 tracked managers in all.

## About

Zoetis Inc. stands as a global leader in animal health, focusing on the research, development, manufacturing, and commercialization of veterinary pharmaceuticals, vaccines, and diagnostic tools. Its comprehensive portfolio serves a broad spectrum of species, encompassing both livestock, including cattle, swine, poultry, fish, and sheep, and beloved companion animals such as dogs, cats, and horses. Among its pharmaceutical offerings are various therapeutic agents. This includes vaccines, vital for preventing respiratory, gastrointestinal, and reproductive diseases by stimulating a targeted immune response; anti-infectives that combat or inhibit the proliferation of bacterial, fungal, or protozoal pathogens; and parasiticides aimed at eradicating both internal and external pests such as fleas, ticks, and various worms. Additional pharmaceuticals address areas such as pain management and se…

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Source: https://sweetvaluelab.com/stocks/zts (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.