QualityDipStocks / Health Care · Pharmaceuticals
Zoetis ZTS
Outside our quality screen, so we don’t track its dips. It’s 45% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate, 6% over its Market Value.
- Fair value est.
- $100.72+26%
- Market Value
- $74.83price +6%
- Off 52-wk high
- −45%
- Risk vs market
- Lowbeta 0.48
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $79.72
- 52-wk lowlowest close, 1 year$69.10−13.3%
- Market Valueavg paid since Aug 6$74.83−6.1%
- PriceFri Oct 30 close$79.72you are here
- Fair value est.base case$100.72+26.3%
- 52-wk highhighest close, 1 year$144.35+81.1%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 5.4% ±2 points. Bear = 10.5% and 3.4%; bull = 8.5% and 7.4% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, ZTS’s free cash flow would need to grow about 1% a year for five years; our estimate uses 5%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much ZTS moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 3.0× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.48
- Volatility
- 38% vs 13% SPY
- Correlation SPY
- 0.16
- Correlation QQQ
- 0.00
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $100.72, 26% above the price.
ProfitabilityReturn on equity of 65% over the last 12 months, up 33 points in two years.
ValuationP/E of 12.6× vs a 29.2× median for the 86 Health Care companies we cover.
Cash returnsShare count down 6.2% in a year: $3.6B of buybacks over 12 months.
ValuationFree-cash-flow yield of 7.0% (price / FCF 14.4×): $2.3B of free cash in the last 12 months.
Top bearish points 5 of 5
Balance sheetDebt rose 38% to $9.0B from FY2023 to FY2025.
Balance sheetDebt is 2.9× shareholders’ equity.
GrowthSales grew 1.6% over the last 12 months, below the 8.6% median for the 101 Health Care companies we cover.
QualityDoesn’t pass our quality screen: sales down vs the year-ago quarter.
ValuationTrades 6.5% above its Market Value of $74.83, the average price paid since the Aug 6 filing.
Who’s talking about it
Notable investors, executives, analysts and public figures on Zoetis in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Pharmaceuticals
All fundamentals
P/E 12.6 · FCF yield 7.0% · ROE 65%
Valuation
- P/E
- 12.6×Health Care median 29.2×
- Price / FCF
- 14.4×
- FCF yield
- 7.0%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 3.50×
- Price / book
- 10.58×
- Market cap
- $33.3Bprice × diluted shares
- Enterprise value
- $40.7B
Growth
- Revenue, 12 months
- $9.5B
- Sales growth, 12 months
- +1.6%vs the 12 months before
- Sales growth, 3 yrs
- +5.4%/yrfrom FY2022
- Diluted EPS, 12 months
- $6.13
- EPS growth, last FY
- +10.1%
- Net income, 12 months
- $2.6B
- Net income growth
- +2%12 months vs before
Profitability
- Gross margin
- 71.7%
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 27.7%
- FCF margin
- 24.3%
- Return on equity
- 65%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $1.7B
- Total debt
- $9.0B
- Net cash
- −$7.4B
- Debt / equity
- 2.87×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $2.3B
- FCF growth, 12 months
- +2%
- Dividend yield
- 2.67%$889M paid
- Payout ratio
- 34%
- Buybacks, 12 months
- $3.6B10.9% of market cap
- Share count, 1 year
- −6.2%diluted shares vs a year ago
- Stock-based comp
- $95M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Zoetis’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $100.72 · MV $74.83 · FCF value $141.83
Assumes 5.4% growth for 5 years (revenue grew 5.4% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $5.54 a share (trailing 12 months to Jun 30, 2026), from the 10-Q filed Aug 6, 2026. Net debt $7.4B, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 60 · 5 days −1.6%
The business
FCF $2.3B · Sales 0%
- Free cash flow, 12 months$2.3B
- Free-cash-flow yield7.1%
- Free-cash-flow margin24%
- Gross margin72%
- Operating margin38%
- Return on invested capital23%
- Return on equity66%
- Sales growth (latest quarter vs year-ago quarter)0%
- Net debt / EBITDA1.9×
Next report
Nov 5
- DateThu Nov 5, before the open
- Consensus EPS$1.51
- Year-ago EPS$1.70
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
ZTS is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.