Is Zoetis Inc. (ZTS) Undervalued?
Based on the current stock price of $126.23 and a P/E ratio of 21.22,Zoetis Inc. has a PEG ratio of 2.99.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.99, ZTS appears to be potentially overvalued relative to its growth rate of 7.09%.
Based on a PEG ratio of 2.42 (adjusted for dividends).
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How we analyzed ZTS
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 21.22and dividing it by the annual growth rate of 7.09%.
PEG = 21.22 (P/E) ÷ 7.09 (Growth) = 2.99
Frequently Asked Questions about ZTS
What is the current PEG Ratio for Zoetis Inc. (ZTS)?+
The current PEG Ratio for Zoetis Inc. is 2.99. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is ZTS stock undervalued right now?+
Based on the PEG ratio of 2.99, Zoetis Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for ZTS?+
The PEGY ratio for Zoetis Inc. is 2.42. This metric accounts for dividend yield (1.68%), providing a more complete valuation picture.