Zoetis Inc.

LSE:0M3Q Stock Report

Market Cap: US$79.8b

Zoetis Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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.

Below Fair Value: 0M3Q ($177.06) is trading below our estimate of fair value ($250.57)

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 Ratio33.2x
EarningsUS$2.43b
Market CapUS$79.84b

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 Average26.2x
GSK GSK
21.9x21.9%UK£54.9b
AZN AstraZeneca
31.4x18.4%UK£162.4b
HIK Hikma Pharmaceuticals
19.3x12.7%UK£4.4b
ANCR Animalcare Group
32.1x15.8%UK£148.5m
0M3Q Zoetis
33.2x9.9%US$79.8b

Price-To-Earnings vs Peers: 0M3Q is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the peer average (26.2x).

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 33.2xIndustry Avg. 20.1xNo. of Companies11PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0M3Q is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the European Pharmaceuticals industry average (20.3x).

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 Ratio33.2x
Fair PE Ratio32x

Price-To-Earnings vs Fair Ratio: 0M3Q is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the estimated Fair Price-To-Earnings Ratio (32x).

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$177.55
US$214.78
+21.0%
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$170.00n/a16
Jan ’25US$197.35
US$214.90
+8.9%
10.6%US$255.00US$170.00n/a15
Dec ’24US$178.59
US$212.39
+18.9%
10.5%US$255.00US$170.00n/a14
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
Jan ’24US$147.85
US$208.91
+41.3%
14.4%US$250.00US$170.00US$197.3511
Dec ’23US$157.03
US$208.91
+33.0%
14.4%US$250.00US$170.00US$178.5911
Nov ’23US$151.40
US$223.36
+47.5%
10.0%US$264.00US$186.00US$152.4611

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

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