JNJ Relative Valuation
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. If the market price exceeds this fair value range, JNJ is overvalued; if below, it's undervalued.
Historical Valuation
Johnson & Johnson (JNJ) is now in the Fair zone, suggesting that its current forward PE ratio of 18.40 is considered Fairly compared with the five-year average of 16.15. The fair price of Johnson & Johnson (JNJ) is between 185.52 to 206.99 according to relative valuation methord.
Relative Value
Fair Zone
185.52-206.99
Current Price：205.33
Fair
18.12
PE
1Y
3Y
5Y
Trailing
Forward
15.17
EV/EBITDA
Johnson & Johnson. (JNJ) has a current EV/EBITDA of 15.17. The 5-year average EV/EBITDA is 12.98. The thresholds are as follows: Strongly Undervalued below 11.32, Undervalued between 11.32 and 12.15, Fairly Valued between 13.80 and 12.15, Overvalued between 13.80 and 14.63, and Strongly Overvalued above 14.63. The current Forward EV/EBITDA of 15.17 falls within the Strongly Overvalued range.
16.44
EV/EBIT
Johnson & Johnson. (JNJ) has a current EV/EBIT of 16.44. The 5-year average EV/EBIT is 14.42. The thresholds are as follows: Strongly Undervalued below 12.49, Undervalued between 12.49 and 13.46, Fairly Valued between 15.38 and 13.46, Overvalued between 15.38 and 16.35, and Strongly Overvalued above 16.35. The current Forward EV/EBIT of 16.44 falls within the Strongly Overvalued range.
5.09
PS
Johnson & Johnson. (JNJ) has a current PS of 5.09. The 5-year average PS is 4.49. The thresholds are as follows: Strongly Undervalued below 3.82, Undervalued between 3.82 and 4.16, Fairly Valued between 4.82 and 4.16, Overvalued between 4.82 and 5.15, and Strongly Overvalued above 5.15. The current Forward PS of 5.09 falls within the Overvalued range.
21.19
P/OCF
Johnson & Johnson. (JNJ) has a current P/OCF of 21.19. The 5-year average P/OCF is 16.52. The thresholds are as follows: Strongly Undervalued below 12.57, Undervalued between 12.57 and 14.54, Fairly Valued between 18.50 and 14.54, Overvalued between 18.50 and 20.47, and Strongly Overvalued above 20.47. The current Forward P/OCF of 21.19 falls within the Strongly Overvalued range.
26.96
P/FCF
Johnson & Johnson. (JNJ) has a current P/FCF of 26.96. The 5-year average P/FCF is 19.03. The thresholds are as follows: Strongly Undervalued below 14.14, Undervalued between 14.14 and 16.59, Fairly Valued between 21.48 and 16.59, Overvalued between 21.48 and 23.92, and Strongly Overvalued above 23.92. The current Forward P/FCF of 26.96 falls within the Strongly Overvalued range.
Johnson & Johnson (JNJ) has a current Price-to-Book (P/B) ratio of 6.23. Compared to its 3-year average P/B ratio of 5.42 , the current P/B ratio is approximately 15.05% higher. Relative to its 5-year average P/B ratio of 5.76, the current P/B ratio is about 8.20% higher. Johnson & Johnson (JNJ) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.32%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.45% , the current FCF yield is about -100.00% lower.
6.14
P/B
Median3y
5.42
Median5y
5.76
3.96
FCF Yield
Median3y
4.32
Median5y
4.45
Competitors Valuation Multiple
The average P/S ratio for JNJ's competitors is 4.67, providing a benchmark for relative valuation. Johnson & Johnson Corp (JNJ) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 6.77%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of JNJ increased by 41.13% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.99 to 21.47.
The secondary factor is the Revenue Growth, contributed 6.77%to the performance.
Overall, the performance of JNJ in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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