Zoetis Inc.
$83.82
+0.86 (+1.04%) · delayed · Nov 13, 2026
Five-year price
52w $68.77 to $132.49
- Market cap
- $34.1B
- Enterprise value
- $40.8B
- P/E
- 13.9×
- 15.2× on 3y avg EPS
- EV / EBIT
- —
- FCF yield
- 6.7%
- ROIC
- —
- Debt / equity
- 2.71
- Piotroski F
- 5/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
75
- –ROIC > 12% (5y avg)5y avg ROIC n/a
- ●ROE > 15% (5y avg)5y avg ROE 54.4%
- –Stable operating marginsMargin volatility n/a (σ, 5y)
- ○Earnings convert to cashFCF / net income 79% (5y avg)
- ●Growing revenueRevenue CAGR 5y 7.2%
- ●Shrinking share countDiluted shares -7.3% over 5y
Value
50
- ●P/E below 15P/E 13.9
- –EV/EBIT below 12EV/EBIT n/a
- ●FCF yield above 6%FCF yield 6.7%
- ○Price below Graham NumberGraham Number $33.32
- ○P/B below 3P/B 10.2
Safety
50
- ○Debt / equity below 0.5D/E 2.71
- ●Debt payable in < 4 yrs of earningsNet debt $6.7B
- –Interest coverage > 8xCoverage n/ax
- ●Current ratio > 1.5Current ratio 3.03
- ○Piotroski F-score ≥ 6F-score 5/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $9.5B
- ●Strong condition (current ratio ≥ 2)Current ratio 3.03
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 162%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 15.2
- ○P/E × P/B ≤ 22.5Product 155.3
Valuation lab
What do you have to believe?
At $83.82, the market is pricing in about 4.2% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $6.7B · 406M shares · 5y revenue CAGR 7.2%
Intrinsic value
$107.88
Price
$83.82
Margin of safety
22%
What the price implies
The market is paying for 4.2% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
59% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 4,888 | 5,307 | 5,825 | 6,260 | 6,675 | 7,776 | 8,080 | 8,544 | 9,256 | 9,467 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Pre-tax income | 1,228 | 1,525 | 1,690 | 1,801 | 1,996 | 2,488 | 2,656 | 2,936 | 3,133 | 3,360 |
| Income tax | 409 | 663 | 266 | 301 | 360 | 454 | 545 | 596 | 637 | 687 |
| Net income | 821 | 864 | 1,428 | 1,500 | 1,638 | 2,037 | 2,114 | 2,344 | 2,486 | 2,673 |
| EPS (diluted) | 1.65 | 1.75 | 2.93 | 3.11 | 3.42 | 4.27 | 4.49 | 5.07 | 5.47 | 6.02 |
| Diluted shares | 498 | 493 | 487 | 482 | 479 | 477 | 470 | 462 | 455 | 444 |
Who owns it