JNJ PE Ratio & Valuation, Is JNJ Overvalued

Historical Valuation

Johnson & Johnson (JNJ) is now in the Fair zone, suggesting that its current forward PE ratio of 18.82 is considered Fairly compared with the five-year average of 16.16. The fair price of Johnson & Johnson (JNJ) is between 225.52 to 251.16 according to relative valuation method.

Relative Value

Fair Zone

225.52-251.16

Current Price：240.40

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Johnson & Johnson (JNJ) has a current Price-to-Book (P/B) ratio of 6.29. Compared to its 3-year average P/B ratio of 5.41, the current P/B ratio is approximately 16.39% higher. Relative to its 5-year average P/B ratio of 5.72, the current P/B ratio is about 9.93% higher. Johnson & Johnson (JNJ) has a Forward Free Cash Flow (FCF) yield of approximately 3.92%. Compared to its 3-year average FCF yield of 4.34%, the current FCF yield is approximately -9.68% lower. Relative to its 5-year average FCF yield of 4.42%, the current FCF yield is about -11.33% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for JNJ competitors is 5.07, providing a benchmark for relative valuation. Johnson & Johnson Corp (JNJ.N) exhibits a P/S ratio of 5.16, which is 1.9% above the industry average. Given its robust revenue growth of 9.08%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of JNJ increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of JNJ in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is JNJ currently overvalued or undervalued?

What is Johnson & Johnson (JNJ) fair value?

JNJ's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Johnson & Johnson (JNJ) is between 225.52 to 251.16 according to relative valuation method.

How does JNJ's valuation metrics compare to the industry average?

The average P/S ratio for JNJ's competitors is 5.07, providing a benchmark for relative valuation. Johnson & Johnson Corp (JNJ) exhibits a P/S ratio of 5.16, which is 1.90% above the industry average. Given its robust revenue growth of 9.08%, this premium appears unsustainable.

What is the current P/B ratio for Johnson & Johnson (JNJ) as of Mar 09 2026?

As of Mar 09 2026, Johnson & Johnson (JNJ) has a P/B ratio of 6.29. This indicates that the market values JNJ at 6.29 times its book value.

What is the current FCF Yield for Johnson & Johnson (JNJ) as of Mar 09 2026?

As of Mar 09 2026, Johnson & Johnson (JNJ) has a FCF Yield of 3.92%. This means that for every dollar of Johnson & Johnson's market capitalization, the company generates 3.92 cents in free cash flow.

What is the current Forward P/E ratio for Johnson & Johnson (JNJ) as of Mar 09 2026?

As of Mar 09 2026, Johnson & Johnson (JNJ) has a Forward P/E ratio of 18.82. This means the market is willing to pay $18.82 for every dollar of Johnson & Johnson's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Johnson & Johnson (JNJ) as of Mar 09 2026?

As of Mar 09 2026, Johnson & Johnson (JNJ) has a Forward P/S ratio of 5.16. This means the market is valuing JNJ at $5.16 for every dollar of expected revenue over the next 12 months.

JNJ Valuation