A company with leading share in almost every relevant segment of a $24
billion market, strong margins, and strong barriers to entry arguably
should trade at healthy multiples, so I can't say that the valuation of Zoetis (NYSE:ZTS)
comes as much of a surprise. What's more, the company isn't done
growing and expanding, as the company can still target share growth in
Europe, market growth in emerging markets like China, margin
improvement, and expansion into adjacent markets/products. Even so, the
valuation gives me pause, as I believe it already factors in strong
growth and over $2.1 billion in free cash flow in 2026.
Continue here:
Zoetis: A Well-Loved Leader
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