Discounted Cash Flow

Zoetis Inc.

ZTS · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $4.9b $821.0m $497.0m 16.8% $1.66
2017 $5.3b (8.6%) $864.0m (5.2%) $1.1b (125.8%) 16.3% (-3.1%) $1.76 (6.0%)
2018 $5.8b (9.8%) $1.4b (65.3%) $1.5b (29.4%) 24.5% (50.6%) $2.96 (68.2%)
2019 $6.3b (7.5%) $1.5b (5.0%) $1.3b (-8.1%) 24.0% (-2.3%) $3.14 (6.1%)
2020 $6.7b (6.6%) $1.6b (9.2%) $1.7b (25.3%) 24.5% (2.4%) $3.44 (9.6%)
2021 $7.8b (16.5%) $2.0b (24.4%) $1.7b (3.8%) 26.2% (6.8%) $4.29 (24.7%)
2022 $8.1b (3.9%) $2.1b (3.8%) $1.3b (-23.6%) 26.2% (-0.1%) $4.51 (5.1%)
2023 $8.5b (5.7%) $2.3b (10.9%) $1.6b (22.2%) 27.4% (4.9%) $5.08 (12.6%)
2024 $9.3b (8.3%) $2.5b (6.1%) $2.3b (41.8%) 26.9% (-2.1%) $5.47 (7.7%)
2025 $9.5b (2.3%) $2.7b (7.5%) $2.3b (-0.7%) 28.2% (5.1%) $6.03 (10.2%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model