NYSE
ZTS
Last Price
US $72.45
KEY FIGURES
MKT CAP
$31.9B
EPS
TTM
$6.26
PEG
TTM
1.53x
P/E
TTM
12.59x
P/S
TTM
3.37x
YIELD
2.71%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
62.41%
Return on equity
ROIC: 21.79%
Valuation History
12.6X
Price to Earnings
EV/EBITDA: 9.7X
Cash flow
Profit margin
7.24%
(FY vs FY)
EBITDA Y/Y
8.66%
(FY vs FY)
Cash flow Y/Y
6.41%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $72.45
-9.00%
Default assumptions
EBITDA Multiple
Fair Value
Market $72.45
-30.34%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Zoetis Inc. cash flow to debt ratio of 30.59% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Zoetis Inc.'s free cash flow has decreased -0.65% from $2.30G last year to $2.28G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Zoetis Inc.'s debt to equity ratio is 2.86, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Zoetis Inc.'s debt has increased relative to shareholder equity from 1.41 last year to 2.86 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Zoetis Inc. has a net debt to EBITDA ratio of 1.76x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Zoetis Inc.'s interest coverage ratio of 14.83 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Zoetis Inc.'s profit margin has increased (3.49%) in the last year from 26.86% to 27.79%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Zoetis Inc.'s short-term assets of $6.77G exceed its short-term liabilities of $2.23G
Increasing performance - ROA.
Zoetis Inc.'s return on assets of 17.44% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Zoetis Inc.'s return on equity of 62.41%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Zoetis Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Zoetis Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Zoetis Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Zoetis Inc. has a free cash flow yield of 7.16%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Zoetis Inc.'s yearly earnings has increased 7.52% since last year from $2.49G to $2.67G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Zoetis Inc.'s yearly revenue has increased 2.28% since last year from $9.26G to $9.47G, signaling increasing performance
Increasing performance - ROIC.
ROIC 21.79% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Zoetis Inc.'s 3-year revenue CAGR of 5.42% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Zoetis Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Zoetis Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Zoetis Inc. is overvalued relative to its fair value price of 65.93 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Zoetis Inc. has an earnings yield of 8.23%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Zoetis Inc. is overvalued relative to its fair value price of 50.47 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Zoetis Inc. has an EV/EBITDA ratio of 9.72x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Zoetis Inc. has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
Zoetis Inc. has a price-to-book ratio of 9.93x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Zoetis Inc. has a price-to-sales ratio of 3.35x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue