Price to Book Value (P/BV)
since 2012
Calculation
Zoetis Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Zoetis Inc. equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 13, 2024 | 16.81 | = | 183.49 | ÷ | 10.91 | 10.91 | = | 4,997 | ÷ | 457,867,115 | |
| Feb 14, 2023 | 18.08 | = | 171.90 | ÷ | 9.51 | 9.51 | = | 4,405 | ÷ | 463,386,716 | |
| Feb 15, 2022 | 20.55 | = | 197.76 | ÷ | 9.63 | 9.63 | = | 4,543 | ÷ | 471,970,580 | |
| Feb 16, 2021 | 20.97 | = | 166.32 | ÷ | 7.93 | 7.93 | = | 3,769 | ÷ | 475,166,373 | |
| Feb 13, 2020 | 25.42 | = | 144.94 | ÷ | 5.70 | 5.70 | = | 2,708 | ÷ | 474,933,945 | |
| Feb 14, 2019 | 18.74 | = | 85.54 | ÷ | 4.56 | 4.56 | = | 2,185 | ÷ | 478,771,915 | |
| Feb 15, 2018 | 21.52 | = | 78.50 | ÷ | 3.65 | 3.65 | = | 1,770 | ÷ | 485,253,713 | |
| Feb 16, 2017 | 17.46 | = | 52.78 | ÷ | 3.02 | 3.02 | = | 1,487 | ÷ | 491,964,064 | |
| Feb 24, 2016 | 19.72 | = | 42.37 | ÷ | 2.15 | 2.15 | = | 1,068 | ÷ | 497,155,532 | |
| Feb 27, 2015 | 17.61 | = | 46.09 | ÷ | 2.62 | 2.62 | = | 1,311 | ÷ | 500,787,817 | |
| Mar 26, 2014 | 15.56 | = | 29.21 | ÷ | 1.88 | 1.88 | = | 940 | ÷ | 500,729,429 | |
| Mar 28, 2013 | 4.15 | = | 33.40 | ÷ | 8.05 | 8.05 | = | 4,026 | ÷ | 500,000,000 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Zoetis Inc. Annual Report.
The financial data indicates a significant expansion in the market valuation of the company relative to its book value over the analyzed period, characterized by an initial period of volatility followed by a prolonged high-premium phase and a recent moderate contraction.
- Price to Book Value (P/BV) Trajectory
- A sharp increase in the P/BV ratio is observed between 2013 and 2014, where the ratio rose from 4.15 to 15.56. This spike was primarily driven by a substantial decline in the book value per share rather than a price increase. Following this adjustment, the ratio maintained a high plateau, fluctuating between 17.46 and 21.52 from 2015 through 2019.
- Peak Valuation and Subsequent Compression
- The P/BV ratio reached its maximum peak of 25.42 in February 2020, representing the highest market premium over book value in the recorded period. Since 2020, a consistent downward trend in the ratio has emerged, descending to 16.81 by February 2024. This compression suggests a gradual realignment of market expectations or a shift in valuation multiples despite the continued growth of the underlying book value.
- Book Value per Share (BVPS) Analysis
- Following a significant drop from 8.05 in 2013 to 1.88 in 2014, the BVPS has exhibited a steady and uninterrupted recovery. The value grew consistently over the subsequent decade, reaching 10.91 by February 2024. This long-term upward trajectory indicates a strengthening of the company's net asset position per share.
- Share Price Correlation
- The share price demonstrated strong growth from 2013 to 2022, rising from 33.40 to a peak of 197.76. While the share price experienced a correction in 2023 before recovering slightly in 2024, the P/BV ratio's decline during the latter years reflects that share price growth did not keep pace with the steady increase in book value per share.
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Comparison to Competitors
Zoetis Inc., P/BV, long-term trends, comparison to competitors
| Zoetis Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 13, 2024 | 16.81 | 29.97 | 24.94 | 3.35 | 3.47 | 65.80 | 4.01 | 5.48 | 8.68 | 1.75 | 3.96 | 4.57 | 6.26 |
| Feb 14, 2023 | 18.08 | 15.52 | 35.01 | 4.88 | 3.64 | 29.36 | 4.90 | 5.37 | 6.07 | 2.48 | 3.77 | 4.83 | 5.50 |
| Feb 15, 2022 | 20.55 | 16.53 | 18.51 | 4.07 | 4.16 | 25.28 | 3.65 | 5.90 | 5.05 | 3.35 | 3.60 | 5.18 | 6.16 |
| Feb 16, 2021 | 20.97 | 14.18 | 14.53 | 3.55 | 3.93 | 35.07 | 4.33 | 6.72 | 7.46 | 2.98 | 4.81 | 5.15 | 6.30 |
| Feb 13, 2020 | 25.42 | — | 13.84 | 2.80 | 3.72 | 51.67 | 3.93 | 6.61 | 7.83 | 3.00 | 3.79 | 4.16 | 10.23 |
| Feb 14, 2019 | 18.74 | — | 9.41 | 5.89 | 2.80 | 12.87 | 3.89 | 6.08 | 7.79 | 3.80 | 5.07 | 3.75 | 10.68 |
| Feb 15, 2018 | 21.52 | 36.95 | 5.02 | 8.88 | 2.58 | 7.33 | 5.15 | 5.79 | 4.30 | 2.94 | 5.66 | 3.30 | 20.14 |
| Feb 16, 2017 | 17.46 | 21.24 | 4.14 | 5.66 | 2.56 | 6.33 | 4.88 | 4.72 | 4.51 | 3.40 | 8.58 | 2.86 | 18.42 |
| Feb 24, 2016 | 19.72 | 22.17 | 3.94 | 7.04 | 2.53 | 5.51 | 6.59 | 4.07 | 3.15 | 2.84 | 10.53 | 2.42 | 22.38 |
| Feb 27, 2015 | 17.61 | 56.09 | 4.59 | 6.72 | 2.63 | 5.14 | 10.08 | 4.01 | 3.42 | 2.95 | 16.22 | 2.51 | 25.60 |
| Mar 26, 2014 | 15.56 | 18.05 | 4.30 | 5.92 | 2.38 | 3.69 | 11.36 | 3.50 | 3.35 | 2.69 | 16.74 | 2.90 | 14.77 |
| Mar 28, 2013 | 4.15 | 18.06 | 3.57 | 4.40 | 2.23 | 4.15 | 7.01 | 3.29 | 2.44 | 2.42 | 12.91 | 1.72 | 10.08 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Zoetis Inc., P/BV, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Zoetis Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Feb 13, 2024 | 16.81 | 6.77 |
| Feb 14, 2023 | 18.08 | 5.66 |
| Feb 15, 2022 | 20.55 | 5.72 |
| Feb 16, 2021 | 20.97 | 5.99 |
| Feb 13, 2020 | 25.42 | 5.82 |
| Feb 14, 2019 | 18.74 | 6.02 |
| Feb 15, 2018 | 21.52 | 5.14 |
| Feb 16, 2017 | 17.46 | 4.58 |
| Feb 24, 2016 | 19.72 | 4.15 |
| Feb 27, 2015 | 17.61 | 4.47 |
| Mar 26, 2014 | 15.56 | 3.97 |
| Mar 28, 2013 | 4.15 | 3.21 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Industry (Health Care)
Zoetis Inc., P/BV, long-term trends, comparison to industry (health care)
| Zoetis Inc. | Health Care | |
|---|---|---|
| Feb 13, 2024 | 16.81 | 5.94 |
| Feb 14, 2023 | 18.08 | 87,112.79 |
| Feb 15, 2022 | 20.55 | 5.48 |
| Feb 16, 2021 | 20.97 | 5.37 |
| Feb 13, 2020 | 25.42 | 5.14 |
| Feb 14, 2019 | 18.74 | 5.17 |
| Feb 15, 2018 | 21.52 | 4.55 |
| Feb 16, 2017 | 17.46 | 4.06 |
| Feb 24, 2016 | 19.72 | 3.62 |
| Feb 27, 2015 | 17.61 | 4.10 |
| Mar 26, 2014 | 15.56 | 3.51 |
| Mar 28, 2013 | 4.15 | 2.87 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).