Neurocrine Biosciences Inc (NBIX) is undervalued 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 +29% for NBIX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.8% (average of 3 methods) values the shares at $201.20; the price of $142.25 is 29% below that value, and 81% of that value comes from beyond year five.
Leak Score 100/100 on 3 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 | NBIX | ZTS |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $142.25 | $72.86 |
| Intrinsic value | $201.20 | $113.01 |
| Margin of safety | +29% | +36% |
| Leak Score | 100/100 (3/12) | 83/100 (9/12) |
| Market cap | $14.5B | $30.1B |
| Revenue growth, 5 years | 22.3% | 7.2% |
| Operating margin | 23.9% | 37.6% |
| Net margin | 20.9% | 27.5% |
| Return on equity | 22.1% | 64.4% |
| Debt to equity | 0.11 | 2.93 |
| P/E | 20.8x | 12.0x |
| Forward P/E | 14.6x | 11.3x |
| P/B | 3.9x | 9.6x |
| Dividend yield | — | 2.9% |