Zoetis Inc. (ZTS) Financial Ratios
16 years of historical data (2010–2025) · Healthcare · Drug Manufacturers - Specialty & Generic
EV/EBITDA
↓
9.84
↓-59% vs avg
5yr avg: 24.22
30Y Low15.4·High36.8
P/FCF
↓
14.45
↓-69% vs avg
5yr avg: 46.40
30Y Low24.5·High67.0
P/B Ratio
↓
10.49
↓-43% vs avg
5yr avg: 18.37
30Y Low15.5·High25.6
ROE
↑
66.0%
↓+25% vs avg
5yr avg: 52.6%
30Y Low3%·High72%
Debt/EBITDA
↑
2.32
+12% vs avg
5yr avg: 2.08
30Y Low0.6·High4.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ZTS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Zoetis Inc. trades at 13.1x earnings, 64% below its 5-year average of 35.9x, sitting at the 0th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.1x, the stock trades at a discount of 41%. On a free-cash-flow basis, the stock trades at 14.5x P/FCF, 69% below the 5-year average of 46.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $33.0B | $55.8B | $74.1B | $91.2B | $68.9B | $116.3B | $79.2B | $63.8B | $41.6B | $35.5B | $26.7B |
| Enterprise Value | $40.2B | $63.0B | $78.9B | $96.0B | $73.4B | $119.6B | $83.0B | $68.4B | $46.5B | $38.9B | $30.4B |
| P/E Ratio → | 13.07 | 20.90 | 29.79 | 38.93 | 32.64 | 57.15 | 48.39 | 42.56 | 29.19 | 41.17 | 32.44 |
| P/S Ratio | 3.49 | 5.90 | 8.01 | 10.68 | 8.53 | 14.96 | 11.87 | 10.19 | 7.15 | 6.69 | 5.46 |
| P/B Ratio | 10.49 | 16.76 | 15.54 | 18.28 | 15.66 | 25.60 | 20.99 | 23.55 | 19.06 | 19.89 | 17.79 |
| P/FCF | 14.45 | 24.46 | 32.25 | 56.29 | 51.99 | 67.01 | 47.34 | 47.76 | 28.68 | 31.66 | 53.66 |
| P/OCF | 11.36 | 19.23 | 25.10 | 38.78 | 36.05 | 52.57 | 37.25 | 35.52 | 23.27 | 26.39 | 37.41 |
P/E links to full P/E history page with 30-year chart
ZTS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Zoetis Inc.'s enterprise value stands at 9.8x EBITDA, 59% below its 5-year average of 24.2x. The Healthcare sector median is 14.2x, placing the stock at a 31% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.66 | 8.52 | 11.23 | 9.09 | 15.38 | 12.43 | 10.93 | 7.98 | 7.33 | 6.22 |
| EV / EBITDA | 9.84 | 15.43 | 20.28 | 26.95 | 21.65 | 36.79 | 30.61 | 28.17 | 21.24 | 19.76 | 18.50 |
| EV / EBIT | 11.17 | 17.59 | 23.37 | 30.04 | 25.39 | 43.90 | 36.95 | 33.50 | 24.45 | 22.89 | 21.82 |
| EV / FCF | — | 27.61 | 34.32 | 59.19 | 55.39 | 68.89 | 49.59 | 51.27 | 32.03 | 34.68 | 61.19 |
ZTS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Zoetis Inc. earns an operating margin of 38.0%. Operating margins have expanded from 35.9% to 38.0% over the past 3 years, signaling improving operational efficiency. Return on equity of 66.0% is exceptionally high. ROIC of 26.9% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 70.5% | 70.5% | 69.1% | 68.3% | 67.8% | 68.3% | 66.8% | 65.7% | 65.2% | 64.9% | 64.3% |
| Operating Margin | 38.0% | 38.0% | 36.6% | 35.9% | 36.2% | 36.0% | 34.0% | 32.2% | 32.3% | 32.5% | 28.7% |
| Net Profit Margin | 28.2% | 28.2% | 26.9% | 27.4% | 26.2% | 26.2% | 24.5% | 24.0% | 24.5% | 16.3% | 16.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 66.0% | 66.0% | 50.9% | 49.9% | 47.3% | 49.0% | 50.5% | 61.3% | 71.9% | 52.6% | 63.4% |
| ROA | 18.0% | 18.0% | 17.4% | 16.0% | 14.7% | 14.8% | 13.0% | 13.4% | 14.7% | 10.6% | 10.6% |
| ROIC | 26.9% | 26.9% | 26.5% | 24.7% | 26.3% | 27.4% | 22.8% | 21.0% | 23.1% | 24.9% | 21.0% |
| ROCE | 29.9% | 29.9% | 29.2% | 25.4% | 24.5% | 23.8% | 21.4% | 20.9% | 22.1% | 24.6% | 22.2% |
ZTS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Zoetis Inc. carries a Debt/EBITDA ratio of 2.3x, which is manageable (28% below the sector average of 3.2x). Net debt stands at $7.2B ($9.5B total debt minus $2.3B cash). Interest coverage of 14.7x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.85 | 2.85 | 1.41 | 1.35 | 1.84 | 1.48 | 1.95 | 2.44 | 2.95 | 2.77 | 2.98 |
| Debt / EBITDA | 2.32 | 2.32 | 1.73 | 1.90 | 2.38 | 2.07 | 2.72 | 2.72 | 2.95 | 2.52 | 2.72 |
| Net Debt / Equity | — | 2.16 | 1.00 | 0.94 | 1.02 | 0.72 | 1.00 | 1.73 | 2.22 | 1.90 | 2.50 |
| Net Debt / EBITDA | 1.76 | 1.76 | 1.22 | 1.32 | 1.33 | 1.00 | 1.39 | 1.93 | 2.22 | 1.72 | 2.28 |
| Debt / FCF | — | 3.15 | 2.07 | 2.91 | 3.40 | 1.88 | 2.25 | 3.50 | 3.34 | 3.02 | 7.53 |
| Interest Coverage | 14.74 | 14.74 | 13.95 | 12.38 | 12.21 | 11.54 | 9.02 | 8.44 | 8.97 | 9.71 | 8.40 |
ZTS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Zoetis Inc.'s current ratio of 3.03x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.94x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 3.36x to 3.03x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.03 | 3.03 | 1.75 | 3.36 | 2.37 | 3.86 | 3.05 | 2.63 | 3.60 | 3.85 | 3.03 |
| Quick Ratio | 1.94 | 1.94 | 1.08 | 2.00 | 1.63 | 2.79 | 2.30 | 1.85 | 2.46 | 2.55 | 1.69 |
| Cash Ratio | 1.03 | 1.03 | 0.58 | 1.08 | 1.13 | 1.94 | 1.66 | 1.07 | 1.39 | 1.43 | 0.65 |
| Asset Turnover | — | 0.61 | 0.65 | 0.60 | 0.54 | 0.56 | 0.49 | 0.54 | 0.54 | 0.62 | 0.64 |
| Inventory Turnover | 1.15 | 1.15 | 1.24 | 1.06 | 1.11 | 1.28 | 1.36 | 1.52 | 1.46 | 1.31 | 1.16 |
| Days Sales Outstanding | — | 61.30 | 51.90 | 55.71 | 54.89 | 53.18 | 55.39 | 63.32 | 64.92 | 68.64 | 68.18 |
ZTS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Zoetis Inc. returns 12.3% to shareholders annually — split between a 2.5% dividend yield and 9.8% buyback yield. The payout ratio of 33.3% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 7.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 1.6% | 1.1% | 0.8% | 0.9% | 0.4% | 0.5% | 0.5% | 0.6% | 0.6% | 0.7% |
| Payout Ratio | 33.3% | 33.3% | 31.6% | 29.5% | 28.9% | 23.3% | 23.2% | 20.9% | 17.0% | 23.8% | 22.9% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.6% | 4.8% | 3.4% | 2.6% | 3.1% | 1.7% | 2.1% | 2.3% | 3.4% | 2.4% | 3.1% |
| FCF Yield | 6.9% | 4.1% | 3.1% | 1.8% | 1.9% | 1.5% | 2.1% | 2.1% | 3.5% | 3.2% | 1.9% |
| Buyback Yield | 9.8% | 5.8% | 2.5% | 1.2% | 2.3% | 0.6% | 0.3% | 1.0% | 1.7% | 1.4% | 1.1% |
| Total Shareholder Yield | 12.3% | 7.4% | 3.6% | 2.0% | 3.2% | 1.0% | 0.8% | 1.5% | 2.3% | 2.0% | 1.8% |
| Shares Outstanding | — | $444M | $455M | $462M | $470M | $477M | $479M | $482M | $487M | $493M | $498M |
Peer Comparison
Compare ZTS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ZTSYou | $33B | 13.1 | 9.8 | 14.5 | 70.5% | 38.0% | 66.0% | 26.9% | 2.3 |
 ELAN | $12B | -51.5 | 16.7 | 42.6 | 43.5% | 5.3% | -3.7% | 1.9% | 4.3 |
 PCRX | $878M | 139.6 | 9.4 | 6.4 | 79.4% | 4.6% | 1.0% | 2.3% | 3.7 |
 PAHC | $1B | 26.8 | 12.7 | 30.9 | 30.9% | 8.5% | 17.8% | 9.8% | 4.9 |
 IDXX | $45B | 43.0 | 31.1 | 42.4 | 61.8% | 31.6% | 66.2% | 42.5% | 0.7 |
 NEOG | $2B | -1.9 | 20.8 | — | 47.1% | 1.1% | -41.9% | 0.2% | 6.8 |
 MRK | $281B | 15.6 | 10.8 | 22.8 | 72.0% | 36.2% | 36.9% | 22.0% | 1.7 |
 PFE | $143B | 18.5 | 10.3 | 15.8 | 70.3% | 24.7% | 8.9% | 7.5% | 3.3 |
 ABBV | $383B | 91.4 | 15.8 | 21.5 | 70.2% | 32.8% | 6214.7% | 23.9% | 2.4 |
 LLY | $1.0T | 47.8 | 34.3 | 115.6 | 83.8% | 45.6% | 101.2% | 41.8% | 1.4 |
 BMY | $110B | 15.7 | 8.9 | 8.6 | 67.6% | 26.3% | 40.4% | 16.9% | 2.8 |
| Healthcare Median | — | 22.1 | 14.2 | 18.5 | 63.9% | -4.3% | -32.6% | -11.6% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 16 years · Updated daily
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ZTS — Frequently Asked Questions
Quick answers to the most common questions about buying ZTS stock.
What is Zoetis Inc.'s P/E ratio?
Zoetis Inc.'s current P/E ratio is 13.1x. The historical average is 39.5x.
What is Zoetis Inc.'s EV/EBITDA?
Zoetis Inc.'s current EV/EBITDA is 9.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.8x.
What is Zoetis Inc.'s ROE?
Zoetis Inc.'s return on equity (ROE) is 66.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 42.7%.
Is ZTS stock overvalued?
Based on historical data, Zoetis Inc. is trading at a P/E of 13.1x. Compare with industry peers and growth rates for a complete picture.
What is Zoetis Inc.'s dividend yield?
Zoetis Inc.'s current dividend yield is 2.54% with a payout ratio of 33.3%.
What are Zoetis Inc.'s profit margins?
Zoetis Inc. has 70.5% gross margin and 38.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Zoetis Inc. have?
Zoetis Inc.'s Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.