Price to Sales (P/S)
since 2012
Calculation
Zoetis Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenue1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 13, 2024 | 9.83 | = | 183.49 | ÷ | 18.66 | 18.66 | = | 8,544 | ÷ | 457,867,115 | |
| Feb 14, 2023 | 9.86 | = | 171.90 | ÷ | 17.44 | 17.44 | = | 8,080 | ÷ | 463,386,716 | |
| Feb 15, 2022 | 12.00 | = | 197.76 | ÷ | 16.48 | 16.48 | = | 7,776 | ÷ | 471,970,580 | |
| Feb 16, 2021 | 11.84 | = | 166.32 | ÷ | 14.05 | 14.05 | = | 6,675 | ÷ | 475,166,373 | |
| Feb 13, 2020 | 11.00 | = | 144.94 | ÷ | 13.18 | 13.18 | = | 6,260 | ÷ | 474,933,945 | |
| Feb 14, 2019 | 7.03 | = | 85.54 | ÷ | 12.17 | 12.17 | = | 5,825 | ÷ | 478,771,915 | |
| Feb 15, 2018 | 7.18 | = | 78.50 | ÷ | 10.94 | 10.94 | = | 5,307 | ÷ | 485,253,713 | |
| Feb 16, 2017 | 5.31 | = | 52.78 | ÷ | 9.94 | 9.94 | = | 4,888 | ÷ | 491,964,064 | |
| Feb 24, 2016 | 4.42 | = | 42.37 | ÷ | 9.58 | 9.58 | = | 4,765 | ÷ | 497,155,532 | |
| Feb 27, 2015 | 4.82 | = | 46.09 | ÷ | 9.55 | 9.55 | = | 4,785 | ÷ | 500,787,817 | |
| Mar 26, 2014 | 3.21 | = | 29.21 | ÷ | 9.11 | 9.11 | = | 4,561 | ÷ | 500,729,429 | |
| Mar 28, 2013 | 3.85 | = | 33.40 | ÷ | 8.67 | 8.67 | = | 4,336 | ÷ | 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 trajectory from 2013 to 2024 is characterized by steady organic growth in sales per share accompanied by a significant expansion and subsequent stabilization of the Price-to-Sales (P/S) valuation multiple.
- Sales per Share Growth
- A consistent upward trend is observed in sales per share, which increased from 8.67 US$ in 2013 to 18.66 US$ in 2024. This represents a sustained increase in revenue generation per share over the twelve-year period, indicating strong and linear operational growth.
- P/S Ratio Expansion
- The P/S ratio experienced a substantial increase, rising from a low of 3.21 in 2014 to a peak of 12.00 in 2022. The most aggressive expansion occurred between 2019 and 2021, where the ratio climbed from 7.03 to 11.84, suggesting a period of heightened investor confidence or a significant re-rating of the company's market valuation relative to its revenue.
- Share Price Correlation
- While the share price rose from 33.40 US$ in 2013 to 183.49 US$ in 2024, the magnitude of the price increase significantly exceeded the growth in sales per share. This divergence is evidenced by the P/S ratio, which more than tripled from its 2014 trough to its 2022 peak, indicating that valuation expansion was a primary driver of share price appreciation during that period.
- Recent Valuation Stabilization
- Following the peak in 2022, a correction is observed in the P/S ratio, which declined to 9.86 in 2023 and remained nearly flat at 9.83 in 2024. This suggests a normalization of the valuation multiple, as the share price decreased slightly while sales per share continued to climb, leading to a more moderated P/S ratio compared to the 2020-2022 period.
AI Ask an analyst for more
Comparison to Competitors
Zoetis Inc., P/S, 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 | 9.83 | 5.72 | 5.78 | 2.19 | 7.76 | 20.77 | 3.40 | 4.43 | 5.43 | 2.61 | 7.84 | 4.99 | 11.16 |
| Feb 14, 2023 | 9.86 | 4.61 | 5.17 | 3.29 | 5.79 | 10.96 | 3.86 | 4.34 | 4.71 | 2.35 | 7.01 | 4.73 | 8.56 |
| Feb 15, 2022 | 12.00 | 4.53 | 5.10 | 3.16 | 6.37 | 8.01 | 2.85 | 4.66 | 3.96 | 3.15 | 4.20 | 5.39 | 8.21 |
| Feb 16, 2021 | 11.84 | 4.05 | 5.64 | 3.16 | 7.01 | 8.06 | 3.24 | 5.15 | 3.93 | 4.42 | 6.24 | 5.52 | 8.82 |
| Feb 13, 2020 | 11.00 | 4.22 | 6.03 | 5.52 | 6.29 | 6.03 | 4.00 | 4.79 | 4.33 | 3.66 | 5.34 | 4.83 | 14.95 |
| Feb 14, 2019 | 7.03 | 3.58 | 5.22 | 3.67 | 3.97 | 5.15 | 3.84 | 4.45 | 4.92 | 4.49 | 6.62 | 4.24 | 15.54 |
| Feb 15, 2018 | 7.18 | 6.67 | 5.82 | 5.02 | 3.70 | 3.71 | 4.10 | 4.56 | 3.68 | 4.05 | 5.92 | 4.01 | 16.42 |
| Feb 16, 2017 | 5.31 | 3.84 | 5.65 | 4.72 | 3.48 | 4.18 | 3.08 | 4.62 | 4.54 | 3.84 | 7.86 | 3.37 | 12.51 |
| Feb 24, 2016 | 4.42 | 3.83 | 5.28 | 6.07 | 2.91 | 4.02 | 3.80 | 4.13 | 3.56 | 3.76 | 9.38 | 3.05 | 20.38 |
| Feb 27, 2015 | 4.82 | 4.90 | 6.13 | 6.28 | 3.09 | 4.03 | 6.36 | 3.77 | 3.93 | 4.24 | 14.62 | 3.06 | 47.41 |
| Mar 26, 2014 | 3.21 | 4.31 | 5.22 | 5.48 | 2.78 | 2.81 | 11.95 | 3.63 | 3.78 | 3.97 | 15.52 | 3.74 | 16.53 |
| Mar 28, 2013 | 3.85 | 3.30 | 4.09 | 3.40 | 2.32 | 2.71 | 6.95 | 3.17 | 2.73 | 3.34 | 11.66 | 2.12 | 6.60 |
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/S, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Zoetis Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Feb 13, 2024 | 9.83 | 5.89 |
| Feb 14, 2023 | 9.86 | 4.56 |
| Feb 15, 2022 | 12.00 | 4.50 |
| Feb 16, 2021 | 11.84 | 4.90 |
| Feb 13, 2020 | 11.00 | 4.88 |
| Feb 14, 2019 | 7.03 | 4.54 |
| Feb 15, 2018 | 7.18 | 4.60 |
| Feb 16, 2017 | 5.31 | 4.29 |
| Feb 24, 2016 | 4.42 | 4.10 |
| Feb 27, 2015 | 4.82 | 4.54 |
| Mar 26, 2014 | 3.21 | 4.30 |
| Mar 28, 2013 | 3.85 | 3.25 |
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/S, long-term trends, comparison to industry (health care)
| Zoetis Inc. | Health Care | |
|---|---|---|
| Feb 13, 2024 | 9.83 | 3.52 |
| Feb 14, 2023 | 9.86 | 51,413.66 |
| Feb 15, 2022 | 12.00 | 3.28 |
| Feb 16, 2021 | 11.84 | 3.31 |
| Feb 13, 2020 | 11.00 | 3.21 |
| Feb 14, 2019 | 7.03 | 3.07 |
| Feb 15, 2018 | 7.18 | 3.06 |
| Feb 16, 2017 | 5.31 | 2.80 |
| Feb 24, 2016 | 4.42 | 2.72 |
| Feb 27, 2015 | 4.82 | 3.08 |
| Mar 26, 2014 | 3.21 | 2.81 |
| Mar 28, 2013 | 3.85 | 2.20 |
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).