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ZoetisMEX:ZTS -0.38%69 5-Year Yield-on-Cost % is 7.04 as of Jul. 16, 2026, which is 329% above its 10-year median of 1.64. GuruFocus rates MEX:ZTS with a GF Score™ of 69/100 and a GF Value™ of MXN3,394.34 (Significantly Undervalued). Among 514 Drug Manufacturers companies, Zoetis ranks better than 82.88% on this metric.
Zoetis's yield on cost for the quarter that ended in Mar. 2026 was 7.04.
The historical rank and industry rank for Zoetis's 5-Year Yield-on-Cost % or its related term are showing as below:
MEX:ZTS'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.95 Med: 1.64 Max: 7.04
Current: 7.04
During the past 13 years, Zoetis's highest Yield on Cost was 7.04. The lowest was 0.95. And the median was 1.64.
MEX:ZTS's 5-Year Yield-on-Cost % is ranked better than 82.88% of 514
companies
in the Drug Manufacturers industry
Industry Median: 2.3
vs MEX:ZTS: 7.04
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Zoetis 5-Year Yield-on-Cost % Related Terms
MEX:ZTS vs UTHR, VTRS, NBIX: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zoetis's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zoetis 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zoetis's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Zoetis's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Zoetis is calculated as
Zoetis (MEX:ZTS) has a 5-Year Yield-on-Cost % of 7.04 as of Jul. 16, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Zoetis and its competitors. This is 329% above median its historical median of 1.64. Over the past decade, Zoetis' 5-Year Yield-on-Cost % has ranged from 0.95 to 7.04. According to the industry distribution chart, Zoetis ranks #88 out of 514 companies in the Drug Manufacturers industry, placing it in the top 17.1%.
Is Zoetis' 5-Year Yield-on-Cost % too high?
Zoetis' current 5-Year Yield-on-Cost % of 7.04 is 329% above median its 10-year median of 1.64. Over the past 10 years, this metric has ranged from a low of 0.95 to a high of 7.04. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.30. Zoetis' value of 7.04 is 206.1% above this industry median. Based on the distribution chart, Zoetis ranks #88 out of 514 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Zoetis has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zoetis' 5-Year Yield-on-Cost % compare to UTHR and VTRS?
According to the Drug Manufacturers industry distribution chart, Zoetis ranks #88 out of 514 companies for 5-Year Yield-on-Cost %. This places Zoetis in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 2.30. Zoetis' value of 7.04 is 206.1% above this benchmark. Historically, Zoetis' own 5-Year Yield-on-Cost % has ranged from 0.95 to 7.04 over the past decade. While the company's 10-year median is 1.64 vs. the industry median of 2.30, Zoetis has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.30, based on 514 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zoetis's current 5-Year Yield-on-Cost % of 7.04 is 206.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Zoetis and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoetis's current 5-Year Yield-on-Cost % is 7.04, which is 329% above median its own 10-year median of 1.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoetis stock overvalued right now?
Based on GuruFocus' analysis, Zoetis (MEX:ZTS) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN3,394.34, compared to a current price of MXN1,300.00 — trading 61.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 7.04, which is 329% above median its 10-year median of 1.64 and 206.1% above the Drug Manufacturers industry median of 2.30. Zoetis' overall GF Score™ is 69/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Zoetis (MEX:ZTS), the current 5-Year Yield-on-Cost % is 7.04 as of Jul. 16, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zoetis (MEX:ZTS) Overvalued in 2026?
Based on GuruFocus' analysis, Zoetis stock appears to be undervalued.
The current stock price of MXN1,300.00 is trading 61.7% below its estimated GF Value™ of MXN3,394.34.
GuruFocus considers Zoetis to be Significantly Undervalued.
Key valuation signals for MEX:ZTS:
5-Year Yield-on-Cost %: 7.04 (329% above median its 10-year median of 1.64)
GF Value™: MXN3,394.34 vs. price of MXN1,300.00 (61.7% below fair value)
Industry Position: 206.1% above the Drug Manufacturers median (#88 of 514)
No single metric tells the full story. See the MEX:ZTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns roughly 35% of total revenue from production animals (cattle, pigs, poultry, and so on) and nearly 65% from companion animal (dogs, horses, cats) products. Its US business is skewed even more heavily toward companion animals, while its international business is slightly skewed toward production animals. The firm has the largest market share in the industry and was previously Pfizer's animal health unit.
69GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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