Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Zoetis Inc. (NYSE:ZTS)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Zoetis Inc., current price multiples

Microsoft Excel LibreOffice Calc
Zoetis Inc. Abbott Laboratories AbbVie Inc. Amgen Inc. Biogen Inc. Bristol-Myers Squibb Co. Eli Lilly & Co. Gilead Sciences Inc. Illumina Inc. Johnson & Johnson Merck & Co. Inc. Pfizer Inc. Regeneron Pharmaceuticals Inc. Vertex Pharmaceuticals Inc. Pharmaceuticals & Biotechnology Health Care
Selected Financial Data
Current share price (P) $157.95
No. shares of common stock outstanding 475,267,819
Growth rate (g) 40.02%
 
Earnings per share (EPS) $3.16
Next year expected EPS $4.42
Operating profit per share $4.14
Sales per share $13.17
Book value per share (BVPS) $5.70
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 50.05 51.87 24.03 17.02 6.43 40.94 17.07 14.33 51.09 26.17 21.06 13.78 24.84 50.45 22.10 25.35
Price to next year expected earnings 35.74 54.00 19.19 14.94 4.83 42.70 14.82 11.32 41.36 31.53 21.80 13.09 20.41 45.93 19.85 23.02
Price-earnings-growth (PEG) 1.25 0.95 1.22 0.19 1.13 0.54 2.17 2.61 1.14 5.13 1.95 2.51
Price to operating profit (P/OP) 38.16 42.20 14.59 13.79 5.37 23.81 28.55 18.00 51.98 19.97 17.87 17.02 23.78 49.58 19.70 22.18
Price to sales (P/S) 11.99 5.99 5.69 6.01 2.63 5.39 6.36 3.49 14.45 4.82 4.43 4.33 6.68 14.26 5.28 4.27
Price to book value (P/BV) 27.72 6.15 13.79 2.84 2.73 54.47 3.43 11.10 6.65 8.00 3.55 4.74 9.76 6.69 6.05

Based on: 10-K (filing date: 2020-02-13).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Zoetis Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 45.89 28.68 44.09 31.63 62.14
Price to operating profit (P/OP) 35.00 22.59 22.33 18.65 28.09
Price to sales (P/S) 11.00 7.03 7.18 5.31 4.42
Price to book value (P/BV) 25.42 18.74 21.52 17.46 19.72

Based on: 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), 10-K (filing date: 2016-02-24).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Zoetis Inc.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Zoetis Inc.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Zoetis Inc.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Zoetis Inc.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 474,933,945 478,771,915 485,253,713 491,964,064 497,155,532
Selected Financial Data (US$)
Net income attributable to Zoetis (in millions) 1,500  1,428  864  821  339 
Earnings per share (EPS)2 3.16 2.98 1.78 1.67 0.68
Share price1, 3 144.94 85.54 78.50 52.78 42.37
Valuation Ratio
P/E ratio4 45.89 28.68 44.09 31.63 62.14
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 41.83 56.47 220.29 55.16 12.83
AbbVie Inc. 17.82 20.60 35.47 16.54 17.01
Amgen Inc. 17.07 14.01 64.06 16.03 15.95
Biogen Inc. 9.97 14.79 28.83 15.41 16.67
Bristol-Myers Squibb Co. 41.99 16.81 103.55 20.56 64.22
Eli Lilly & Co. 16.19 39.13 32.39 33.35
Gilead Sciences Inc. 16.45 15.26 22.75 6.83 6.75
Illumina Inc. 43.43 52.00 44.63 52.01 50.07
Johnson & Johnson 25.99 23.74 268.10 20.08 18.80
Merck & Co. Inc. 20.60 33.46 61.63 46.14 31.64
Pfizer Inc. 11.63 21.58 9.99 28.10 26.37
Regeneron Pharmaceuticals Inc. 19.86 18.17 28.99 42.64 60.50
Vertex Pharmaceuticals Inc. 52.90 22.59 155.08
P/E Ratio, Sector
Pharmaceuticals & Biotechnology 20.75 23.18 37.52 21.01 19.11
P/E Ratio, Industry
Health Care 22.68 25.04 35.39 22.63 20.66

Based on: 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), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income attributable to Zoetis ÷ No. shares of common stock outstanding
= 1,500,000,000 ÷ 474,933,945 = 3.16

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

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 144.94 ÷ 3.16 = 45.89

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Zoetis Inc.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 474,933,945 478,771,915 485,253,713 491,964,064 497,155,532
Selected Financial Data (US$)
Operating income (in millions) 1,967  1,813  1,706  1,392  750 
Operating profit per share2 4.14 3.79 3.52 2.83 1.51
Share price1, 3 144.94 85.54 78.50 52.78 42.37
Valuation Ratio
P/OP ratio4 35.00 22.59 22.33 18.65 28.09
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 34.03 36.64 60.88 24.25 19.80
AbbVie Inc. 10.82 18.35 19.63 10.49 11.61
Amgen Inc. 13.84 11.46 12.71 12.64 13.07
Biogen Inc. 8.34 11.13 13.70 11.08 12.09
Bristol-Myers Squibb Co. 24.42 16.16 28.87 19.79 53.18
Eli Lilly & Co. 27.08 33.99 39.61 25.63 29.86
Gilead Sciences Inc. 20.66 10.15 7.45 5.23 5.50
Illumina Inc. 44.17 48.64 53.47 40.99 37.71
Johnson & Johnson 19.83 18.34 18.94 16.09 16.50
Merck & Co. Inc. 17.47 25.08 22.58 33.62 20.29
Pfizer Inc. 14.36 17.19 15.62 16.88 15.52
Regeneron Pharmaceuticals Inc. 19.01 17.53 16.71 28.70 30.74
Vertex Pharmaceuticals Inc. 51.98 74.57 331.55 2,143.58
P/OP Ratio, Sector
Pharmaceuticals & Biotechnology 18.50 18.80 18.34 15.37 14.99
P/OP Ratio, Industry
Health Care 19.85 19.64 19.08 16.21 15.76

Based on: 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), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 1,967,000,000 ÷ 474,933,945 = 4.14

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

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 144.94 ÷ 4.14 = 35.00

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Zoetis Inc.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 474,933,945 478,771,915 485,253,713 491,964,064 497,155,532
Selected Financial Data (US$)
Revenue (in millions) 6,260  5,825  5,307  4,888  4,765 
Sales per share2 13.18 12.17 10.94 9.94 9.58
Share price1, 3 144.94 85.54 78.50 52.78 42.37
Valuation Ratio
P/S ratio4 11.00 7.03 7.18 5.31 4.42
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 4.83 4.37 3.84 3.70 2.78
AbbVie Inc. 4.22 3.58 6.67 3.84 3.83
Amgen Inc. 6.03 5.22 5.82 5.65 5.28
Biogen Inc. 4.08 4.87 5.96 4.98 5.49
Bristol-Myers Squibb Co. 5.52 3.67 5.02 4.72 6.07
Eli Lilly & Co. 6.03 5.15 3.71 4.18 4.02
Gilead Sciences Inc. 4.00 3.84 4.10 3.08 3.80
Illumina Inc. 12.28 12.89 11.77 10.03 10.41
Johnson & Johnson 4.79 4.45 4.56 4.62 4.13
Merck & Co. Inc. 4.33 4.92 3.68 4.54 3.56
Pfizer Inc. 3.66 4.49 4.05 3.84 3.76
Regeneron Pharmaceuticals Inc. 5.34 6.62 5.92 7.86 9.38
Vertex Pharmaceuticals Inc. 14.95 15.54 16.42 12.51 20.38
P/S Ratio, Sector
Pharmaceuticals & Biotechnology 4.95 4.70 4.77 4.42 4.25
P/S Ratio, Industry
Health Care 3.82 3.59 3.60 3.26 3.19

Based on: 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), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 6,260,000,000 ÷ 474,933,945 = 13.18

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

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 144.94 ÷ 13.18 = 11.00

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Zoetis Inc.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 474,933,945 478,771,915 485,253,713 491,964,064 497,155,532
Selected Financial Data (US$)
Total Zoetis Inc. equity (in millions) 2,708  2,185  1,770  1,487  1,068 
Book value per share (BVPS)2 5.70 4.56 3.65 3.02 2.15
Share price1, 3 144.94 85.54 78.50 52.78 42.37
Valuation Ratio
P/BV ratio4 25.42 18.74 21.52 17.46 19.72
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 4.96 4.38 3.40 3.76 2.68
AbbVie Inc. 36.95 21.24 22.17
Amgen Inc. 13.84 9.41 5.02 4.14 3.94
Biogen Inc. 4.40 5.03 5.80 4.70 6.31
Bristol-Myers Squibb Co. 2.80 5.89 8.88 5.66 7.04
Eli Lilly & Co. 51.67 12.87 7.33 6.33 5.51
Gilead Sciences Inc. 3.93 3.89 5.15 4.88 6.59
Illumina Inc. 9.43 11.43 11.79 10.95 12.50
Johnson & Johnson 6.61 6.08 5.79 4.72 4.07
Merck & Co. Inc. 7.83 7.79 4.30 4.51 3.15
Pfizer Inc. 3.00 3.80 2.98 3.40 2.84
Regeneron Pharmaceuticals Inc. 3.79 5.07 5.66 8.58 10.53
Vertex Pharmaceuticals Inc. 10.23 10.68 20.14 18.42 22.38
P/BV Ratio, Sector
Pharmaceuticals & Biotechnology 6.28 6.55 5.55 4.92 4.48
P/BV Ratio, Industry
Health Care 5.41 5.41 4.87 4.33 3.90

Based on: 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), 10-K (filing date: 2016-02-24).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Total Zoetis Inc. equity ÷ No. shares of common stock outstanding
= 2,708,000,000 ÷ 474,933,945 = 5.70

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

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 144.94 ÷ 5.70 = 25.42

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Zoetis Inc.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.