Is ZTS overvalued or undervalued?

At $80.04 the price sits below every lens we ran. We don't call ZTS overvalued or undervalued from a range. This is an educational estimate, not advice.

What discount rate is used for ZTS?

A WACC of 8.4% and a terminal growth rate of 2.5%.

Is Zoetis stock undervalued?

TickerWorth's fair-value range for Zoetis Inc. (ZTS) is $83.42 – $145.04 against a market price of $80.04. Priced below our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

Zoetis (ZTS) DCF valuation and fair value

Our fair-value range for Zoetis Inc. (ZTS) is $83.42 – $145.04, built on a 8.4% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Zoetis stock?

Today's price implies revenue growth of −2.8% a year for 5 years; our model assumes 2.0% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $80.04. A model estimate, not investment advice.

Zoetis (ZTS) insider trading

The most recent insider filing (SEC Form 4) for Zoetis Inc. (ZTS): FULLER JULIE, Executive Vice President, option exercise on 2026-09-30. The latest filings are listed on this page. A disclosure, not a signal to trade.

ZTS · Intrinsic value

Is Zoetis Inc. (ZTS) overvalued or undervalued?

Name: Zoetis Inc. (ZTS) DCF intrinsic value
Creator: TickerWorth

As of Oct 21, 2026, TickerWorth publishes a fair-value range of $83.42 – $145.04 for Zoetis Inc. (ZTS), against the delayed market price of $80.04: priced below our range. It is a range, not a single number, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 21, 2026 · How these pages are made

Open full ZTS analysis

What is ZTS worth?

Backup data source

This price comes from our backup market-data feed.

Fair-value range: $83.42 – $145.04; A range by design: peer multiples and our researched mid-cycle DCF.
Market price: $80.04
Gap to fair value: —
Verdict: Priced below our range

Price as of 21 Oct 2026, 00:10 UTC · Prices are delayed.We publish this company as a range by design, not because our valuation lenses disagree, and we do not collapse it to a single number. We do not call it over- or undervalued from a range.

Fair-value range against the delayed market price: Priced below our range.

Reverse DCF: Today's price implies revenue growth of −2.8% a year for 5 years; our model assumes 2.0% a year on average over the same horizon.

What is ZTS's TickerWorth Score?

B58/100

Scores higher than most companies we compare it with

Compared with Healthcare companies in US

Its strongest point: a profitable, high-quality business. Its weakest: growth is slow or negative.

Value · 66 of 100
Cheaper than 66% of Healthcare companies in US
Price vs worth · 90 of 100
Quality · 88 of 100
More profitable than 88% of Healthcare companies in US
Financial health · 34 of 100
Financially stronger than 34% of Healthcare companies in US
Growth · 20 of 100
Growing faster than 20% of Healthcare companies in US
Momentum · 24 of 100
Outperformed 24% of Healthcare companies in US over the past year

Confidence: High confidence · Scored 21 Oct 2026, 00:10 UTC

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Where the numbers come from

Hand-researched model

What the modeller flagged

CYCLICAL FLAG TRIGGERED ON PURPOSE. Year 1 revenue growth is -2.6% because that is management's guidance, and any negative growth year makes the site label the model a cyclical and publish a range. Zoetis is not a classic cyclical, but 2026 IS a downturn — the question the whole valuation turns on is whether it is a trough (vet-visit weakness that reverses) or a reset (lost share to Elanco and generics that does not). A range is the honest output for that.
TERMINAL VALUE IS ~76% OF ENTERPRISE VALUE — just above the 75% line. The answer depends mostly on what a normal Zoetis earns after 2030; treat the cent with suspicion. Across reasonable WACC and terminal-growth combinations the value runs ~$56 to ~$152.
THE MARGIN PATH IS A JUDGEMENT, NOT A FORECAST FROM MANAGEMENT. Zoetis gives no margin target beyond 2026. The model assumes a ~2-point permanent give-back from the 37.5% FY2025 peak; each 1 point on every year's margin is worth ~$3/share.
YEAR-1 FCF IS ~13% ABOVE THE FY2025 REPORTED FCF ($2,569M modeled vs $2,283M) — inside the 20% line, but worth decomposing: the model is UNLEVERED (before ~$175M of after-tax interest), capex is charged at 5.5% against FY2025's 6.6%, and falling revenue releases ~$86M of working capital in the model, which H1 2026 actuals have not shown.
COST OF DEBT IS MARGINAL (6.2%), NOT AVERAGE (~3%). The 0.25% convertible and legacy 3% notes make Zoetis's actual borrowing cheap until they mature (2027-2029 maturities total $4.1B). Using the average would flatter WACC.
Beta normalized UP from 0.74 to 0.85 for leverage. At the published beta the value is ~$91.
SBC of $83M (0.9% of revenue, FY2025) is expensed inside GAAP EBIT; dilution is captured by the diluted share count.

Why ZTS gets a range, not one number

At a recent price of $80.04, Zoetis Inc. (ZTS) sits below every lens we ran: our valuation lenses put the business somewhere between $83.42 and $145.04 per share. For a cyclical we value through the cycle we publish a range only (peer multiples and our researched mid-cycle DCF): where in the cycle the business sits decides where in that range it lands, and a single figure would claim we know that precisely. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Zoetis Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 8.4%, with a long-run terminal growth rate of 2.5%. About 76% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -2.8% annual revenue growth for ZTS. Our base case instead compounds to about 2.0% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, ZTS's modeled DCF value ranges from about $55.51 to $152.04 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Zoetis Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of ZTS's intrinsic value. Figures update as new filings and prices come in.

Every input behind ZTS's DCF

Input	Value	Source
Base-year revenueZoetis FY2025 10-K (accession 0001555280-26-000011, filed 2026-02-12): us-gaap:Revenues FY2025 $9,467M, +2.3% reported on FY2024's $9,256M (+6% organic operational; the gap is the 2024 sale of the medicated-feed-additive line, $293M in 2024 vs $27M in 2025). FISCAL YEAR ALIGNMENT CAVEAT: from 1 Jan 2026 Zoetis stopped consolidating its non-US subsidiaries on a one-month lag (they previously closed 30 November). The change is retrospective, but Zoetis has so far recast only H1 2025 (revenue $4,680M as reported -> $4,672M recast, -$8M); the full-year 2025 recast arrives with the FY2026 10-K. The as-reported $9,467M is used; on H1's evidence the recast difference is immaterial (<0.2%). CROSS-CHECK: H1 2026 revenue $4,730M, +1.2% on recast H1 2025 — but that half contains ~$100M of one-off revenue the company attributes to the alignment (Q1 2026 release), so the underlying first half was roughly flat to down.	$9,467,000,000	Zoetis FY2025 10-K (accession 0001555280-26-000011, filed 2026-02-12): us-gaap:Revenues FY2025 $9,467M, +2.3% reported on FY2024's $9,256M (+6% organic operational; the gap is the 2024 sale of the medicated-feed-additive line, $293M in 2024 vs $27M in 2025). FISCAL YEAR ALIGNMENT CAVEAT: from 1 Jan 2026 Zoetis stopped consolidating its non-US subsidiaries on a one-month lag (they previously closed 30 November). The change is retrospective, but Zoetis has so far recast only H1 2025 (revenue $4,680M as reported -> $4,672M recast, -$8M); the full-year 2025 recast arrives with the FY2026 10-K. The as-reported $9,467M is used; on H1's evidence the recast difference is immaterial (<0.2%). CROSS-CHECK: H1 2026 revenue $4,730M, +1.2% on recast H1 2025 — but that half contains ~$100M of one-off revenue the company attributes to the alignment (Q1 2026 release), so the underlying first half was roughly flat to down.
Base EBIT marginZoetis Q4/FY2025 earnings release, 8-K Ex-99.1 filed 2026-02-12 (accession 0001555280-26-000008): Zoetis reports no operating-income line. Derived from the GAAP income statement: revenue $9,467M - cost of sales $2,666M - SG&A $2,378M - R&D $698M - amortization of intangibles $128M - restructuring/acquisition costs $51M = $3,546M = 37.46%. Ties to pretax income $3,360M + interest expense $222M - other income $36M = $3,546M. This is GAAP: amortization, restructuring and SBC are all charged. It is a PEAK figure — the best margin in Zoetis's recent history (FY2024 on the same build: $3,133M + $225M - $19M = $3,339M, 36.1%). CROSS-CHECK H1 2026 (Q2 release, same build): pretax $1,624M + interest $123M - other income $25M = $1,722M / $4,730M = 36.4%, against 38.1% for recast H1 2025 — margin is already falling.	37.5%	Zoetis Q4/FY2025 earnings release, 8-K Ex-99.1 filed 2026-02-12 (accession 0001555280-26-000008): Zoetis reports no operating-income line. Derived from the GAAP income statement: revenue $9,467M - cost of sales $2,666M - SG&A $2,378M - R&D $698M - amortization of intangibles $128M - restructuring/acquisition costs $51M = $3,546M = 37.46%. Ties to pretax income $3,360M + interest expense $222M - other income $36M = $3,546M. This is GAAP: amortization, restructuring and SBC are all charged. It is a PEAK figure — the best margin in Zoetis's recent history (FY2024 on the same build: $3,133M + $225M - $19M = $3,339M, 36.1%). CROSS-CHECK H1 2026 (Q2 release, same build): pretax $1,624M + interest $123M - other income $25M = $1,722M / $4,730M = 36.4%, against 38.1% for recast H1 2025 — margin is already falling.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	-3% → 1% → 4% → 4% → 4%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run.
BetaESTIMATEAssumption — Yahoo 5Y-monthly beta (yfinance) 0.74, relevered for today's capital structure: Published 5Y-monthly beta is 0.74. Normalized UP to 0.85 for one stated reason: LEVERAGE. That regression was measured almost entirely on a company whose debt was ~7-8% of its market value (~$6.6B of debt against a $70-90B market cap). Today debt is $9,150M against ~$29.6B of equity — 31% debt-to-equity — after a $2.0B convertible issued to fund buybacks and a ~50% share-price fall. Unlevering 0.74 at the old mix (~0.70) and relevering at today's (Hamada, 20.5% tax) gives ~0.87; 0.85 is that, rounded down. This LOWERS the value: at the published 0.74 the slice is ~$91. A second, softer reason points the same way: the stock now carries a securities class action and a business model the market has stopped treating as defensive.	0.85	ESTIMATEAssumption — Yahoo 5Y-monthly beta (yfinance) 0.74, relevered for today's capital structure: Published 5Y-monthly beta is 0.74. Normalized UP to 0.85 for one stated reason: LEVERAGE. That regression was measured almost entirely on a company whose debt was ~7-8% of its market value (~$6.6B of debt against a $70-90B market cap). Today debt is $9,150M against ~$29.6B of equity — 31% debt-to-equity — after a $2.0B convertible issued to fund buybacks and a ~50% share-price fall. Unlevering 0.74 at the old mix (~0.70) and relevering at today's (Hamada, 20.5% tax) gives ~0.87; 0.85 is that, rounded down. This LOWERS the value: at the published 0.74 the slice is ~$91. A second, softer reason points the same way: the stock now carries a securities class action and a business model the market has stopped treating as defensive.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP). Animal health has historically grown faster than GDP (pet humanization, protein demand), which argues for more; Zoetis's 2026 shows that its share of that growth is contestable, which argues for less. Kept at the default. 2.0% takes ~$6/share off. Must remain < WACC of 8.40%.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP). Animal health has historically grown faster than GDP (pet humanization, protein demand), which argues for more; Zoetis's 2026 shows that its share of that growth is contestable, which argues for less. Kept at the default. 2.0% takes ~$6/share off. Must remain < WACC of 8.40%.
Diluted sharesZoetis Q2 2026 earnings release, 8-K Ex-99.1 filed 2026-08-06 (accession 0001555280-26-000038): Q2 2026 weighted-average diluted shares 417.7M (445.5M a year earlier — down 6% in a year). Period-end outstanding was lower still, 414.15M, after 6.2M shares were bought in Q2 for $558M; using the weighted figure is ~$0.70/share conservative. The $2.0B 0.25% convertible notes due 2029 (conversion price ~$148.20) are far out of the money and settle principal in cash, and capped calls cover dilution up to ~$211.72, so they add no shares here.	418M	Zoetis Q2 2026 earnings release, 8-K Ex-99.1 filed 2026-08-06 (accession 0001555280-26-000038): Q2 2026 weighted-average diluted shares 417.7M (445.5M a year earlier — down 6% in a year). Period-end outstanding was lower still, 414.15M, after 6.2M shares were bought in Q2 for $558M; using the weighted figure is ~$0.70/share conservative. The $2.0B 0.25% convertible notes due 2029 (conversion price ~$148.20) are far out of the money and settle principal in cash, and capped calls cover dilution up to ~$211.72, so they add no shares here.
Market priceBackup price feed · as of 2026-10-21 00:10 UTC	$80.04	Backup price feed · as of 2026-10-21 00:10 UTC

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What does Zoetis Inc. do?

What does it do?

Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally. It operates in the Drug Manufacturers - Specialty & Generic industry (Healthcare sector), headquartered in United States. The company employs roughly 14,500 people.

How does it make money?

The business turns $9.5B in annual revenue into profit. Out of every $100 of sales, about $41 is left as operating profit (operating margin of 40.7%), after a 72% gross margin on the products/services it sells. After all costs, taxes and interest, 27.7% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks stretched: carries heavy debt (2.9× equity), comfortably covers its short-term bills (3.1× current ratio), and is currently profitable.

Who at ZTS filed insider trades?

Recent insider filings for Zoetis Inc.
Date	Insider	Relationship	What happened	Value	Filing
30 Sept 2026	FULLER JULIE	Executive Vice President	Option exercise	—	Form 4 for FULLER JULIE (opens sec.gov in a new tab)
30 Sept 2026	FULLER JULIE	Executive Vice President	Shares withheld (tax)	$19,133.42	Form 4 for FULLER JULIE (opens sec.gov in a new tab)
7 Aug 2026	DAMELIO FRANK A	Director	Gift	—	Form 4 for DAMELIO FRANK A (opens sec.gov in a new tab)
10 Jun 2026	MCCALLISTER MICHAEL B	Director	Gift	—	Form 4 for MCCALLISTER MICHAEL B (opens sec.gov in a new tab)
21 May 2026	Stetter Mark	Director	Option exercise	—	Form 4 for Stetter Mark (opens sec.gov in a new tab)
20 May 2026	PARENT LOUISE M	Director	Option exercise	—	Form 4 for PARENT LOUISE M (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is ZTS's intrinsic value?
TickerWorth's valuation lenses put Zoetis Inc. (ZTS) between $83.42 and $145.04 per share, versus a market price of $80.04. For a cyclical we value through the cycle we publish a range only (peer multiples and our researched mid-cycle DCF): where in the cycle the business sits decides where in that range it lands, and a single figure would claim we know that precisely.
Is ZTS overvalued or undervalued?
At $80.04 the price sits below every lens we ran. We don't call ZTS overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for ZTS?
A WACC of 8.4% and a terminal growth rate of 2.5%.
Is Zoetis stock undervalued?
TickerWorth's fair-value range for Zoetis Inc. (ZTS) is $83.42 – $145.04 against a market price of $80.04. Priced below our range. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Zoetis (ZTS) DCF valuation and fair value
Our fair-value range for Zoetis Inc. (ZTS) is $83.42 – $145.04, built on a 8.4% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Zoetis stock?
Today's price implies revenue growth of −2.8% a year for 5 years; our model assumes 2.0% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $80.04. A model estimate, not investment advice.
Zoetis (ZTS) insider trading
The most recent insider filing (SEC Form 4) for Zoetis Inc. (ZTS): FULLER JULIE, Executive Vice President, option exercise on 2026-09-30. The latest filings are listed on this page. A disclosure, not a signal to trade.