Takeda Pharmaceutical Co ADR (TAK) 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 -86% for TAK.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.6% (average of 2 methods) values the shares at $10.20; the price of $18.95 is 86% above that value, and 77% 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 | TAK | ZTS |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $18.95 | $72.86 |
| Intrinsic value | $10.20 | $113.01 |
| Margin of safety | -86% | +36% |
| Leak Score | 0/100 (2/12) | 83/100 (9/12) |
| Market cap | $60.3B | $30.1B |
| Revenue growth, 5 years | -0.2% | 7.2% |
| Operating margin | 15.3% | 37.6% |
| Net margin | -3.5% | 27.5% |
| Return on equity | -2.2% | 64.4% |
| Debt to equity | 0.65 | 2.93 |
| P/E | — | 12.0x |
| Forward P/E | 30.2x | 11.3x |
| P/B | 1.3x | 9.6x |
| Dividend yield | 3.4% | 2.9% |