Zoetis Inc. (ZTS) DCF Valuation
Transparent DCF models put Zoetis Inc. (ZTS)'s fair value in a range of $56.93 – $193.17 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $81.55 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $81.55, the market is pricing in roughly +8.9%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +4.9%. The price is betting on acceleration above its track record.
Current Price
$81.55
Fair-Value Range
$56.93 – $193.17
Market-Implied Growth
+8.9%/yr
vs +4.9% 5Y actual
ZTS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $1.9B · 0.42B shares · net debt $7.0B
Estimated Fair Value
$56.93
-30.2% vs $81.55
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $81.55; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $74.79 | $79.47 | $85.01 | $91.66 | $99.79 |
| 9.0% | $61.89 | $65.09 | $68.79 | $73.11 | $78.20 |
| 10.0% | $52.06 | $54.34 | $56.93 | $59.88 | $63.29 |
| 11.0% | $44.34 | $46.01 | $47.88 | $49.98 | $52.36 |
| 12.0% | $38.12 | $39.37 | $40.76 | $42.30 | $44.02 |
About Zoetis Inc.
Zoetis Inc. stands as a global leader in animal health, focusing on the research, development, manufacturing, and commercialization of veterinary pharmaceuticals, vaccines, and diagnostic tools. Its comprehensive portfolio serves a broad spectrum of species, encompassing both livestock, including cattle, swine, poultry, fish, and sheep, and beloved companion animals such as dogs, cats, and horses. Among its pharmaceutical offerings are various therapeutic agents. This includes vaccines, vital for preventing respiratory, gastrointestinal, and reproductive diseases by stimulating a targeted immune response; anti-infectives that combat or inhibit the proliferation of bacterial, fungal, or protozoal pathogens; and parasiticides aimed at eradicating both internal and external pests such as fleas, ticks, and various worms. Additional pharmaceuticals address areas such as pain management and sedation, anti-emesis, reproductive health, and oncology. The portfolio also features dermatological solutions for allergic skin conditions and atopic dermatitis, alongside medicated feed additives specifically designed for livestock. Beyond therapeutics, Zoetis offers an extensive array of diagnostic solutions. These include portable analysis systems for blood and urine, point-of-care testing devices, specialized instruments and reagents, rapid immunoassay kits, comprehensive reference laboratory services, and blood glucose monitoring equipment. Further extending its reach, the company provides supplementary offerings such as nutritional products, agribusiness support services, biodevices, genetic testing, and innovations in precision animal health. Zoetis distributes its diverse product portfolio to a broad customer base, including veterinary professionals, livestock producers, and retail channels. This distribution occurs directly via its sales representatives and technical specialists, as well as through partnerships with third-party veterinary distributors. Established in 1952, the company maintains its corporate headquarters in Parsippany, New Jersey.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- CEO
- Kristin C. Peck