Health Care · Pharmaceuticals · US stock · price as of 16 Oct 2026
Key indicators
Price
$79.38
52-week range
$68.77 – $145.51
Market cap
$33.2B
P/E (trailing)
13.1×
EV / EBITDA
10.2×
Free-cash-flow yield
7.0%
Dividend yield
2.6%
Revenue (last 12 months)
$9.5B
Revenue growth (3y a year)
5.4%
Operating margin
36.9%
Return on invested capital
26.7%
Net debt / EBITDA
1.8×
Fair value
Blended fair value$163.92 range $154 – $176
Versus priceUndervalued+107% to fair value
Peer multiples
$169.57
Fundamentals-adjusted multiple
$144.87
10-year DCF (market-scaled)
$177.34
Earnings power value (floor, not blended)
$58.67
Model uncertainty
Medium
X-Ray Score
68/ 100 · High confidence · ahead of 92% of sector peers
Valuation87
Growth48
Profitability72
Financial health60
Dividends69
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Zoetis develops, manufactures and sells medicines, vaccines and diagnostic products for pets and farm animals. Its range covers treatments for parasites, pain, skin conditions and infections in dogs and cats, along with products for cattle, pigs and poultry. Revenue comes from selling to veterinarians, distributors and livestock producers around the world, and it depends on pet ownership trends and animal health spending.
The company reported revenue of $9.5 billion for the last twelve months at Zoetis Inc.. Revenue growth over the past three years averaged 5.4% a year. It kept an operating margin of 36.9%. The return on invested capital reached 27%, a measure of profit earned on the money invested in the business. Leverage, measured as net debt to EBITDA, is 1.8 times. The company pays a dividend, and the yield is 2.6%.
StocksXray gives Zoetis Inc. an X-Ray Score of 68 out of 100 (high confidence), ahead of 92% of the S&P 500 stocks in its sector. Its strongest lens is valuation (87) and its weakest is growth (48).
Our fair value blend is $163.92 (range $153.63 to $176.40). At $79.38 the stock trades 52% below that blend, so the label is "Undervalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Zoetis Inc. (ZTS)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$230.96
$139.72
$189.89
$158.31
$123.88
$79.38
Market cap
$110.1B
$65.7B
$87.8B
$72.0B
$55.0B
$33.2B
P/E
54.1×
31.1×
37.5×
28.9×
20.6×
13.1×
EV / revenue
14.6×
8.7×
10.8×
8.3×
6.5×
4.3×
EV / EBITDA
35.8×
21.0×
25.2×
19.9×
15.1×
10.2×
Price / free cash flow
63.4×
49.6×
54.2×
31.3×
24.1×
14.3×
Free-cash-flow yield
1.6%
2.0%
1.8%
3.2%
4.2%
7.0%
Price / book
24.2×
14.9×
17.6×
15.1×
16.1×
10.5×
Dividend yield
0.47%
0.97%
0.82%
1.13%
1.64%
2.63%
Fundamentals checklist ● 9 Good · ● 6 Average · ● 1 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−1.5%Bad
Free-cash-flow yield7.0%Good
Risk models
Altman Z score6.9×Good
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)10.3%Average
Free-cash-flow growth (3y)19.9%Good
Revenue growth (3y)5.4%Average
Growth consistency90%Average
Balance sheet
Current ratio3.1×Good
Net debt / EBITDA1.8×Average
Interest cover14.7×Average
Valuation
Fair value vs price2.1×Good
EBIT / EV yield8.7%Good
Profitability
Return on invested capital26.7%Good
Operating margin36.9%Good
Gross profitability45.2%Good
XStocksXray
Zoetis Inc. (ZTS)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
7,776
8,080
8,544
9,256
9,467
9,517
Gross profit
5,473
5,626
5,983
6,537
6,801
6,808
Operating income
2,712
2,877
3,175
3,358
3,582
3,510
Net income
2,037
2,114
2,344
2,486
2,673
2,616
Diluted EPS ($)
4.27
4.49
5.07
5.47
6.02
6.06
Free cash flow
1,736
1,326
1,621
2,298
2,283
2,316
Gross margin
70.4%
69.6%
70.0%
70.6%
71.8%
71.5%
Operating margin
34.9%
35.6%
37.2%
36.3%
37.8%
36.9%
Net margin
26.2%
26.2%
27.4%
26.9%
28.2%
27.5%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
13,900
14,925
14,286
14,237
15,490
15,077
Cash
3,485
3,581
2,041
1,987
2,450
1,476
Total debt
6,592
7,904
6,567
6,570
9,042
9,048
Equity
4,543
4,405
4,997
4,770
3,415
3,148
Dividend per share ($)
1.08
1.35
1.56
1.80
2.03
2.09
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.