Zoetis Inc. logo ZTS - Zoetis Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY 1
BUY 15
HOLD 14
SELL 0
STRONG
SELL 0
| PRICE TARGET: $125.71 DETAILS
HIGH: $160.00
LOW: $95.00
MEDIAN: $135.00
CONSENSUS: $125.71
UPSIDE: 54.59%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Moderate
Trading 17.5% below fair value
Current Price $81.32
Bear Case $84.48 3.9% upside ($84.48 - $81.32) / $81.32 = 3.9% $6.21 × 12x P/E
Fair Value $98.56 21.2% upside ($98.56 - $81.32) / $81.32 = 21.2% $6.21 × 14x P/E
Bull Case $112.65 38.5% upside ($112.65 - $81.32) / $81.32 = 38.5% $6.21 × 16x P/E

Adjust Assumptions

14.0x
6.21$

Key Value Driver

Normalized P/E multiple (14x base case)

Implied Market Multiple 13.1x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $125.71 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $98.56 per share.

Warnings

ℹ Wall Street's average price target is $125.71 (from 30 analysts). Our estimate is 31% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples