TGM's two-stage DCF values Zoetis Inc. (ZTS) between $60.71 and $130.36 depending on assumptions, with a base case of $87.88. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (7.8%) reflects its beta.
What would today's price require?
$73.41 is justified only if free cash flow grows about +2.5% a year (fading to 2.5% long-run) at a 7.8% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.0%/yr | 8.8% | $60.71 |
| Base case | 6.0%/yr | 7.8% | $87.88 |
| Optimistic | 9.0%/yr | 6.8% | $130.36 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 9, 2026 · assumptions not provided | $181.09 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$73.41
Market-Implied Growth
+2.5%/yr
vs +6.8% 5Y actual
Model Scenario Range
$60.71 – $130.36
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for ZTS (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $2.0B · 0.42B shares · net debt $7.0B
Estimated Fair Value
$87.88
+19.7% vs $73.41
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $73.41; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.8% | $117 | $132 | $152 | $179 | $218 |
| 6.8% | $91.49 | $101 | $113 | $127 | $146 |
| 7.8% | $73.95 | $80.32 | $87.88 | $97.00 | $108 |
| 8.8% | $61.24 | $65.76 | $71.01 | $77.14 | $84.43 |
| 9.8% | $51.59 | $54.95 | $58.77 | $63.14 | $68.19 |
