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Zoetis Inc. — Intrinsic Value & Fair Price

ZTS
NYSEHealthcareDrug Manufacturers - Specialty & GenericCIK 0001555280zoetis.comAbout ZTS
Valuation grade ?S
Quant grade ?S
Last close · Oct 30, 202679.72+1.45 (+1.85%)
Model value · DCF · Perpetuity growth · 5y
123.99
Zoetis closed at $79.72 — undervalued by 36% vs model.
97.91the model's range165.60

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
52.20 – 214.51
Wall St. target
82.00 3% below
Below model, 1y
30 of 30 days

How it is valued

Valued asMature & stable
Low/slowing growth (~5% recent)High profitability (28% net margin)Pays dividendsHighly cyclical earningsHigh leverage (D/E 2.8x)Strong FCF yield (6.9%)
What growth the price implies: the reverse DCF

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; how each model works is in the manual.