What is Zoetis Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Zoetis Inc.'s reported free cash flow gives $89.60 per share. The share price was $71.05 on September 25, 2026, 21% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 2.0% | 10.0% | $48.52 | -32% |
| Base | 7.0% | 9.0% | $89.60 | +26% |
| Bull | 12.0% | 8.0% | $166.26 | +134% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $119.35 | $128.46 | $139.59 | $153.50 | $171.39 |
| 8.0% | $97.13 | $103.04 | $110.01 | $118.39 | $128.62 |
| 9.0% | $80.90 | $84.94 | $89.60 | $95.03 | $101.46 |
| 10.0% | $68.54 | $71.41 | $74.67 | $78.39 | $82.68 |
| 11.0% | $58.83 | $60.94 | $63.29 | $65.94 | $68.93 |
Where the presets come from
Base: years 1 to 5 grow at Zoetis Inc.'s revenue growth rate over the last 5 fiscal years (7.2% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions