Zoetis Inc. discovers, develops, manufactures and markets veterinary vaccines and medicines, complemented by diagnostic products and genetic tests and supported by a range of services. The company was founded in 1952 and is based in Florham Park, New Jersey.
ZTS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ZTS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Zoetis Inc ranked in the 32th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ZTS, they are:
The company has produced more trailing twelve month cash flow than 80.95% of its sector Healthcare.
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than just 20.19% of the free cash flow producing stocks we're observing.
ZTS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 40.48% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ENTA, PRAH, ESMC, IONS, and LCI can be thought of as valuation peers to ZTS, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
The Dow Jones Industrial Average had trouble padding its recent gains, yet the action in stocks today points to a market in a confirmed uptrend. While the Dow's opening gain of 0.3% was much smaller than some of its strong daily increases, and eroded during the first hour of trading, the 30-stock blue chip index continues to stay at five-week highs. At this week's high of 27,071, the Dow industrials have now risen 48% off the coronavirus stock market crash low of 18,213.