Zoetis Inc.

LSE:0M3Q Stock Report

Market Cap: US$71.9b

Zoetis Valuation

Is 0M3Q undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0M3Q when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$228.38
Fair Value
30.0% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: 0M3Q ($159.82) is trading below our estimate of fair value ($228.38)

Significantly Below Fair Value: 0M3Q is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0M3Q?

Key metric: As 0M3Q is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0M3Q. This is calculated by dividing 0M3Q's market cap by their current earnings.
What is 0M3Q's PE Ratio?
PE Ratio28.9x
EarningsUS$2.49b
Market CapUS$71.85b

Price to Earnings Ratio vs Peers

How does 0M3Q's PE Ratio compare to its peers?

The above table shows the PE ratio for 0M3Q vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.8x
GSK GSK
22.6x18.0%UK£58.3b
HLN Haleon
29.3x11.0%UK£35.4b
AZN AstraZeneca
32.6x16.5%UK£181.5b
HIK Hikma Pharmaceuticals
22.7x11.7%UK£5.1b
0M3Q Zoetis
28.9x8.0%US$71.9b

Price-To-Earnings vs Peers: 0M3Q is expensive based on its Price-To-Earnings Ratio (28.9x) compared to the peer average (26.8x).

Price to Earnings Ratio vs Industry

How does 0M3Q's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
0M3Q 28.9xIndustry Avg. 22.7xNo. of Companies10PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0M3Q is expensive based on its Price-To-Earnings Ratio (28.9x) compared to the European Pharmaceuticals industry average (22.7x).

Price to Earnings Ratio vs Fair Ratio

What is 0M3Q's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0M3Q PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.9x
Fair PE Ratio32.9x

Price-To-Earnings vs Fair Ratio: 0M3Q is good value based on its Price-To-Earnings Ratio (28.9x) compared to the estimated Fair Price-To-Earnings Ratio (32.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0M3Q forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$159.82
US$203.54
+27.4%
10.7%US$244.00US$171.00n/a17
Feb ’26US$170.75
US$209.36
+22.6%
10.2%US$243.00US$178.13n/a17
Jan ’26US$162.12
US$213.01
+31.4%
9.5%US$248.00US$178.13n/a17
Dec ’25US$175.25
US$214.78
+22.6%
9.5%US$248.00US$172.12n/a15
Nov ’25US$183.01
US$214.78
+17.4%
10.0%US$248.00US$170.00n/a15
Oct ’25US$192.25
US$213.12
+10.9%
10.2%US$248.00US$170.00n/a15
Sep ’25US$181.46
US$215.54
+18.8%
9.2%US$248.00US$170.00n/a15
Aug ’25US$181.06
US$211.07
+16.6%
9.9%US$248.00US$170.00n/a15
Jul ’25US$172.56
US$209.47
+21.4%
10.0%US$248.00US$170.00n/a15
Jun ’25US$168.58
US$210.46
+24.8%
10.4%US$248.00US$170.00n/a15
May ’25US$158.68
US$213.93
+34.8%
10.2%US$248.00US$170.00n/a16
Apr ’25US$169.95
US$220.68
+29.8%
9.4%US$260.00US$170.00n/a16
Mar ’25US$191.83
US$221.93
+15.7%
8.9%US$260.00US$170.00n/a16
Feb ’25US$188.93
US$220.97
+17.0%
9.1%US$255.00US$170.00US$170.7516
Jan ’25US$197.35
US$214.90
+8.9%
10.6%US$255.00US$170.00US$162.1215
Dec ’24US$178.59
US$212.39
+18.9%
10.5%US$255.00US$170.00US$175.2514
Nov ’24US$152.46
US$217.10
+42.4%
10.8%US$260.00US$170.00US$183.0115
Oct ’24US$174.43
US$218.77
+25.4%
10.3%US$260.00US$170.00US$192.2515
Sep ’24US$192.36
US$216.23
+12.4%
11.4%US$260.00US$170.00US$181.4613
Aug ’24US$185.59
US$213.23
+14.9%
12.0%US$260.00US$170.00US$181.0613
Jul ’24US$171.84
US$213.50
+24.2%
12.7%US$260.00US$170.00US$172.5612
Jun ’24US$165.63
US$214.25
+29.4%
12.4%US$260.00US$170.00US$168.5812
May ’24US$176.30
US$214.08
+21.4%
12.5%US$260.00US$170.00US$158.6812
Apr ’24US$164.52
US$214.92
+30.6%
12.3%US$260.00US$170.00US$169.9512
Mar ’24US$167.08
US$214.92
+28.6%
12.3%US$260.00US$170.00US$191.8312
Feb ’24US$165.83
US$209.70
+26.5%
13.2%US$250.00US$170.00US$188.9312
Analyst Price Target
Consensus Narrative from 17 Analysts
US$202.73
Fair Value
21.2% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/22 15:19
End of Day Share Price 2025/02/21 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Zoetis Inc. is covered by 42 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jasper HellwegArgus Research Company
Ishan MajumdarBaptista Research
Balaji PrasadBarclays