Elanco Animal Health Inc (ELAN) is overvalued and Zoetis Inc (ZTS) is undervalued.
Against our estimates of intrinsic value, ZTS trades at the wider discount: a margin of safety of +36%, against -364% for ELAN.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.6% values the shares at $4.94; the price of $22.93 is 364% above that value, and 71% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $113.01; the price of $72.86 is 36% below that value, and 79% of that value comes from beyond year five.
Leak Score 83/100 on 9 of 12 signals
| Metric | ELAN | ZTS |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $22.93 | $72.86 |
| Intrinsic value | $4.94 | $113.01 |
| Margin of safety | -364% | +36% |
| Leak Score | 0/100 (2/12) | 83/100 (9/12) |
| Market cap | $11.5B | $30.1B |
| Revenue growth, 5 years | 7.6% | 7.2% |
| Operating margin | 6.6% | 37.6% |
| Net margin | -4.0% | 27.5% |
| Return on equity | -3.0% | 64.4% |
| Debt to equity | 0.59 | 2.93 |
| P/E | — | 12.0x |
| Forward P/E | 17.9x | 11.3x |
| P/B | 1.7x | 9.6x |
| Dividend yield | — | 2.9% |