Zoetis Inc. (ZTS) intrinsic value & 10-year financials
Zoetis Inc. (ZTS) has a Graham intrinsic value of $199.96 per share. At $79.38 on Oct 17, 2026, the stock trades 60% below that value. Over the last 10 fiscal years revenue grew 7.6% a year to $9.5B, with an average return on invested capital of 22.9%.
- Graham intrinsic value
- $199.96
- Share price (Oct 17, 2026)
- $79.38
- Price vs Graham value
- 60% below
- Market cap
- $35.2B
- Revenue (FY2025)
- $9.5B
- Revenue growth (10-yr CAGR)
- 7.6%
- ROIC (10-yr avg)
- 22.9%
- Free cash flow (FY2025)
- $2.3B
ZTS 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $9.5B | $2.7B | $6.02 | $2.3B | — | 27.0% |
| FY2024 | $9.3B | $2.5B | $5.47 | $2.3B | — | 25.8% |
| FY2023 | $8.5B | $2.3B | $5.07 | $1.6B | — | 25.2% |
| FY2022 | $8.1B | $2.1B | $4.49 | $1.3B | — | 25.3% |
| FY2021 | $7.8B | $2.0B | $4.27 | $1.7B | — | 26.6% |
| FY2020 | $6.7B | $1.6B | $3.42 | $1.7B | — | 22.0% |
| FY2019 | $6.3B | $1.5B | $3.11 | $1.3B | — | 20.8% |
| FY2018 | $5.8B | $1.4B | $2.93 | $1.5B | — | 23.4% |
| FY2017 | $5.3B | $864.0M | $1.75 | $1.1B | — | 16.6% |
| FY2016 | $4.9B | $821.0M | $1.65 | $497.0M | — | 15.7% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Zoetis has demonstrated mature, steady growth, with revenue compounding at 7.6% annually over the past decade.
Zoetis has earned high returns on invested capital, averaging 22.8% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Over the decade, Zoetis shows that management has aggressively returned capital to shareholders by retiring 10.9% of outstanding shares, and that the company has leveraged its balance sheet to sustain operations.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Zoetis is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $199.96 per share.