Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Current Valuation Ratios
Zoetis Inc., current price multiples
| 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. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||
| Current share price (P) | ||||||||||||||||||
| No. shares of common stock outstanding | ||||||||||||||||||
| Growth rate (g) | ||||||||||||||||||
| Earnings per share (EPS) | ||||||||||||||||||
| Next year expected EPS | ||||||||||||||||||
| Operating profit per share | ||||||||||||||||||
| Sales per share | ||||||||||||||||||
| Book value per share (BVPS) | ||||||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||||||
| Price to earnings (P/E) | ||||||||||||||||||
| Price to next year expected earnings | ||||||||||||||||||
| Price-earnings-growth (PEG) | ||||||||||||||||||
| Price to operating profit (P/OP) | ||||||||||||||||||
| Price to sales (P/S) | ||||||||||||||||||
| Price to book value (P/BV) | ||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31).
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
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio exhibited an upward trend from 45.89 in 2019 to a peak of 48.25 in 2020. Subsequently, it showed a consistent decline over the following three years, reaching 35.84 by the end of 2023. This pattern suggests that the market valuation relative to the company's earnings became less expensive over time after 2020.
- Price to Operating Profit (P/OP) Ratio
- The price to operating profit ratio remained relatively stable around 35 during 2019 and 2020, before gradually decreasing to approximately 27.31 in 2022. A slight increase to 27.86 was seen in 2023. Overall, this indicates a reduction in the valuation multiple based on operating profit, reflecting possibly improved operating profit or a moderated market valuation.
- Price to Sales (P/S) Ratio
- This ratio increased slightly from 11 in 2019 to a high of 12 in 2021, before declining notably to 9.83 by 2023. The decreasing trend in the ratio after 2021 implies that the stock price relative to sales has become more conservative, which may be due to rising sales or a lower market price relative to sales.
- Price to Book Value (P/BV) Ratio
- The price to book value ratio showed a marked downward trend through the period, falling from 25.42 in 2019 to 16.81 by 2023. This significant decline suggests a decreasing premium paid over the book value of the company, reflecting potentially either an appreciation in book value or a price correction.
Price to Earnings (P/E)
Zoetis Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to Zoetis Inc. (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
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 2023 Calculation
EPS = Net income attributable to Zoetis Inc. ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Zoetis Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trend from 2019 through 2023, starting at 144.94 US dollars and reaching 183.49 US dollars. Notably, there was a peak in 2021 at 197.76 US dollars, followed by a decline in 2022 to 171.9 US dollars, before recovering somewhat in 2023.
- Earnings Per Share (EPS)
- Earnings per share showed consistent growth across the five-year period. Beginning at 3.16 US dollars in 2019, EPS increased steadily each year, reaching 5.12 US dollars by the end of 2023. This reflects a positive earnings momentum and improved profitability.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio demonstrated a downward trend over the period, decreasing from 45.89 in 2019 to 35.84 in 2023. After peaking slightly in 2020, the ratio declined each subsequent year, indicating that the share price growth did not keep pace proportionally with earnings growth. This could suggest improved valuation or market adjustment in relation to profitability.
Price to Operating Profit (P/OP)
Zoetis Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
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 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Zoetis Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trend from 2019 to 2023, starting at $144.94 and peaking at $197.76 in 2021. This was followed by a decline in 2022 to $171.90, before a moderate recovery to $183.49 in 2023. The pattern suggests a period of growth culminating in 2021, after which the market experienced some volatility, though the price remained above the initial value in 2019.
- Operating Profit per Share
- Operating profit per share showed consistent growth throughout the five-year period. It increased steadily from $4.14 in 2019 to $6.59 in 2023, with annual increments reflecting improved operational efficiency or profitability. This continuous rise indicates a positive trend in the company's ability to generate profit from its operations on a per-share basis.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio remained relatively stable around 35 in 2019 and 2020, slightly decreasing to approximately 33.82 in 2021. A notable decline happened in 2022, reaching around 27.31, with a minor increase to 27.86 in 2023. This contraction in the ratio suggests that the market valuation relative to operating profit per share became more conservative over time, potentially reflecting market adjustments to earnings growth or changing investor expectations.
- Summary
- Overall, the data depict a company with steadily increasing operating profitability per share, accompanied by fluctuations in share price and a declining valuation multiple. The share price growth up to 2021, followed by a dip and partial recovery, along with the declining P/OP ratio, may indicate market reassessment of growth prospects or risk. The continuous rise in operating profit per share signals operational improvement, which contrasts with the more cautious valuation trends reflected in the price ratios.
Price to Sales (P/S)
Zoetis Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
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 2023 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Zoetis Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trend from 2019 through 2023, rising from $144.94 to $183.49. Notably, after peaking at $197.76 in 2021, the price declined to $171.90 in 2022 before experiencing a moderate recovery in 2023.
- Sales Per Share
- Sales per share consistently increased each year, moving from $13.18 in 2019 to $18.66 in 2023. The growth was steady, with no observed declines, indicating continuous improvement in revenue generation on a per-share basis.
- Price-to-Sales (P/S) Ratio
- The P/S ratio showed a slight rise from 11 in 2019 to 12 in 2021, followed by a notable decrease to 9.86 in 2022 and a marginal further decline to 9.83 in 2023. This shift suggests that the market’s valuation relative to sales became more conservative after 2021 despite the increase in sales per share.
Price to Book Value (P/BV)
Zoetis Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Zoetis Inc. equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| 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. | ||||||
| P/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
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 2023 Calculation
BVPS = Total Zoetis Inc. equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Zoetis Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals several notable trends in the market valuation and book value metrics.
- Share Price
- The share price demonstrated a consistent upward trend from 2019 through 2021, increasing from $144.94 to a peak of $197.76. However, in 2022, the share price declined to $171.90, before partially recovering to $183.49 in 2023. This pattern indicates an initial growth phase followed by a correction and some recovery.
- Book Value per Share (BVPS)
- There is a steady increase in the book value per share throughout the entire period. Starting at $5.70 in 2019, the BVPS rose to $7.93 in 2020, further increased to $9.63 in 2021, slightly decreased to $9.51 in 2022, and then increased to the highest value of $10.91 in 2023. This consistent growth in BVPS suggests strengthening in the company's net asset base over the years, despite the small dip observed in 2022.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio exhibits a declining trend over the period, starting at 25.42 in 2019 and decreasing steadily to 16.81 in 2023. This decline indicates that the market valuation relative to the book value has been compressing. The decreasing ratio, combined with increasing BVPS and fluctuating share price, may imply that shares are becoming less expensive relative to the company's net assets, possibly reflecting market adjustments or changes in investor perception.
Overall, the data reflects a company experiencing growth in book equity, with share prices adapting dynamically to market conditions. The declining price-to-book ratio could suggest a shift toward more moderate market expectations or a revaluation relative to intrinsic book value over the five-year span.