United Therapeutics Corp (UTHR) 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 +35% for UTHR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $764.18; the price of $497.59 is 35% below that value, and 79% of that value comes from beyond year five.
Leak Score 85/100 on 8 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 | UTHR | ZTS |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $497.59 | $72.86 |
| Intrinsic value | $764.18 | $113.01 |
| Margin of safety | +35% | +36% |
| Leak Score | 85/100 (8/12) | 83/100 (9/12) |
| Market cap | $21.3B | $30.1B |
| Revenue growth, 5 years | 16.5% | 7.2% |
| Operating margin | 44.5% | 37.6% |
| Net margin | 41.6% | 27.5% |
| Return on equity | 19.3% | 64.4% |
| Debt to equity | 0.00 | 2.93 |
| P/E | 17.8x | 12.0x |
| Forward P/E | 17.2x | 11.3x |
| P/B | 3.3x | 9.6x |
| Dividend yield | — | 2.9% |