Is Zoetis, Inc. overvalued or undervalued?

Jun 25 2025 08:45 AM IST
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As of May 1, 2025, Zoetis, Inc. is fairly valued with a P/E ratio of 31 and a recent stock performance lagging behind the S&P 500, indicating it may not be the most attractive investment compared to peers like Eli Lilly and Johnson & Johnson.
As of 1 May 2025, the valuation grade for Zoetis, Inc. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 31, an EV to EBITDA of 21.76, and a PEG ratio of 3.69, indicating that while the company has strong earnings growth potential, it may not be as undervalued as previously thought.

In comparison to peers, Zoetis, Inc. has a P/E ratio of 29.62, which is lower than Eli Lilly & Co. at 48.73 but higher than Johnson & Johnson at 22.46, suggesting a competitive position in the market but also indicating that it may not be the most attractive investment at this time. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a 1-year return of -8.04% compared to the index's 10.26%, reinforcing the notion that it is currently fairly valued rather than undervalued.
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