Stock Analysis on Net
Stock Analysis on Net
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Zoetis Inc. (NYSE:ZTS)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Zoetis Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to Zoetis 1,638  1,500  1,428  864  821 
Net loss attributable to noncontrolling interests (2) —  (4) (2) (2)
Net noncash charges 575  446  254  494  328 
Other changes in assets and liabilities, net of acquisitions and divestitures (85) (151) 112  (10) (434)
Net cash provided by operating activities 2,126  1,795  1,790  1,346  713 
Capital expenditures (453) (460) (338) (224) (216)
Increase (decrease) in short-term borrowings, net (9) —  (5)
Principal payments on long-term debt (500) —  —  (750) (400)
Proceeds from issuance of long-term debt, senior notes, net of discount and fees 1,240  —  1,485  1,231  — 
Payment of debt issuance costs (12) —  —  —  (3)
Free cash flow to equity (FCFE) 2,405  1,326  2,945  1,603  89 

Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Zoetis Inc.’s 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.’s FCFE decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.

Price to FCFE Ratio, Current

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

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No. shares of common stock outstanding 474,766,701
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 2,405 
FCFE per share 5.07
Current share price (P) 171.55
Valuation Ratio
P/FCFE 33.87
Benchmarks
P/FCFE, Competitors1
Abbott Laboratories 37.25
AbbVie Inc. 14.51
Amgen Inc. 11.82
Bristol-Myers Squibb Co. 8.35
Eli Lilly & Co. 34.68
Gilead Sciences Inc. 6.32
Illumina Inc. 62.91
Johnson & Johnson 16.26
Merck & Co. Inc. 18.77
Pfizer Inc.
Regeneron Pharmaceuticals Inc. 13.28
Vertex Pharmaceuticals Inc. 18.77
P/FCFE, Sector
Pharmaceuticals & Biotechnology 18.77
P/FCFE, Industry
Health Care 21.41

Based on: 10-K (filing date: 2021-02-16).

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, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 475,166,373 474,933,945 478,771,915 485,253,713 491,964,064
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 2,405  1,326  2,945  1,603  89 
FCFE per share3 5.06 2.79 6.15 3.30 0.18
Share price1, 4 166.32 144.94 85.54 78.50 52.78
Valuation Ratio
P/FCFE5 32.86 51.91 13.91 23.76 291.75
Benchmarks
P/FCFE, Competitors6
Abbott Laboratories 38.42 53.19 70.38 5.13
AbbVie Inc. 13.16 3.64 7.33 19.98 8.15
Amgen Inc. 11.06 33.32 12.46 11.98 9.37
Bristol-Myers Squibb Co. 7.80 5.80 18.62 20.01 52.51
Eli Lilly & Co. 36.62 15.87 35.28 11.27 14.04
Gilead Sciences Inc. 5.98 15.91 67.92 5.70 4.79
Illumina Inc. 80.93 149.01 27.24 57.76 65.66
Johnson & Johnson 15.60 23.06 24.90 14.21 14.18
Merck & Co. Inc. 17.85 18.08 22.76 43.01 24.26
Pfizer Inc. 10.09 18.96 16.06 12.30
Regeneron Pharmaceuticals Inc. 13.30 21.00 24.51 32.42 41.47
Vertex Pharmaceuticals Inc. 18.46 42.50 40.75 135.82 125.60
P/FCFE, Sector
Pharmaceuticals & Biotechnology 18.12 13.17 21.97 16.10 11.99
P/FCFE, Industry
Health Care 19.81 14.57 23.84 16.94 13.55

Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,405,000,000 ÷ 475,166,373 = 5.06

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

5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 166.32 ÷ 5.06 = 32.86

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.’s P/FCFE ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.