Stock Analysis on Net
Stock Analysis on Net

Zoetis Inc. (NYSE:ZTS)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Zoetis Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Zoetis Inc. 2,344 2,114 2,037 1,638 1,500
Net loss attributable to noncontrolling interests (4) (3) (3) (2) —
Net noncash charges 525 500 522 575 446
Other changes in assets and liabilities, net of acquisitions and divestitures (512) (699) (343) (85) (151)
Net cash provided by operating activities 2,353 1,912 2,213 2,126 1,795
Capital expenditures (732) (586) (477) (453) (460)
Increase (decrease) in short-term borrowings, net 1 2 (4) 4 (9)
Principal payments on long-term debt (1,350) — (600) (500) —
Proceeds from issuance of long-term debt, senior notes, net of discount — 1,348 — 1,240 —
Payment of debt issuance costs — (10) — (12) —
Free cash flow to equity (FCFE) 272 2,666 1,132 2,405 1,326

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Zoetis Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Zoetis Inc. FCFE increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to FCFE Ratio, Current

Zoetis Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 457,867,115
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 272
FCFE per share 0.59
Current share price (P) 145.54
Valuation Ratio
P/FCFE 244.99
Benchmarks
P/FCFE, Competitors1
AbbVie Inc. 16.59
Amgen Inc. 4.41
Bristol-Myers Squibb Co. 7.58
Danaher Corp. 50.06
Eli Lilly & Co. 73.59
Gilead Sciences Inc. 11.66
Johnson & Johnson 23.15
Merck & Co. Inc. 24.12
Pfizer Inc. 3.64
Regeneron Pharmaceuticals Inc. 25.49
Thermo Fisher Scientific Inc. 30.49
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 16.38
P/FCFE, Industry
Health Care 16.28

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Zoetis Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 457,867,115 463,386,716 471,970,580 475,166,373 474,933,945
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 272 2,666 1,132 2,405 1,326
FCFE per share3 0.59 5.75 2.40 5.06 2.79
Share price1, 4 183.49 171.90 197.76 166.32 144.94
Valuation Ratio
P/FCFE5 308.88 29.88 82.45 32.86 51.91
Benchmarks
P/FCFE, Competitors6
AbbVie Inc. 17.37 22.66 18.76 13.16 3.64
Amgen Inc. 4.71 8.32 13.52 11.06 33.32
Bristol-Myers Squibb Co. 7.52 22.85 16.17 7.80 5.80
Danaher Corp. 53.08 32.04 20.75 44.62 6.88
Eli Lilly & Co. 75.06 60.51 35.17 36.62 15.87
Gilead Sciences Inc. 12.81 15.22 12.70 5.98 15.91
Johnson & Johnson 24.31 16.73 23.28 15.60 23.06
Merck & Co. Inc. 24.48 22.40 18.72 17.85 18.08
Pfizer Inc. 3.82 10.56 8.88 — 9.87
Regeneron Pharmaceuticals Inc. 26.52 19.29 10.35 13.30 21.00
Thermo Fisher Scientific Inc. 31.16 27.98 13.44 18.58 46.04
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.06 19.49 16.88 17.38 11.72
P/FCFE, Industry
Health Care 16.86 18.40 17.97 17.17 13.58

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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 272,000,000 ÷ 457,867,115 = 0.59

4 Closing price as at the filing date of Zoetis Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 183.49 ÷ 0.59 = 308.88

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Zoetis Inc. P/FCFE ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.