Using the industry peer median P/E multiple (trailing + forward), Zoetis Inc. (ZTS) has a fair value of $120.19 based on 6 comparable companies in the Drug Manufacturers - Specialty & Generic industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Zoetis Inc.ZTS | 52,233 | 19.5x | 16.8x |
| Regeneron Pharmaceuticals, Inc.REGN | 79,023 | 18.3x | 16.8x |
| Cigna CorporationCI | 72,693 | 12.3x | 9.0x |
| Elevance Health Inc.ELV | 65,020 | 11.7x | 11.4x |
| Cencora, Inc.COR | 61,941 | 40.0x | 18.1x |
| Becton, Dickinson and CompanyBDX | 57,532 | 27.2x | 12.7x |
| IDEXX Laboratories, Inc.IDXX | 46,141 | 44.2x | 39.7x |
| Industry Median | 22.8x | 14.7x | |
| (*) Profit after tax | 2,673 | 3,110 | |
| Equity Value | 60,909 | 45,783 | |
| (/) Outstanding shares | 444 | 444 | |
| Fair Price | $137 | $103 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.