Johnson & Johnson (JNJ) Valuation — DCF, Graham & Comparables

Johnson & Johnson (JNJ) — Price $267.28 HealthcareDrug Manufacturers - General — NYSE

Latest reported results:

Valuation dashboard for Johnson & Johnson (JNJ) with P/E 30.82, P/B 7.66, EV/EBITDA 19.87 and dividend yield 1.98%. DCF, Graham Number and Earnings Power Value models plus sector comparison against other Healthcare companies.

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension.

Analysis Summary

Johnson & Johnson reported revenue of $94.19B in the most recent fiscal year, growing at a 5-year CAGR of 2.7%. Net income reached $26.80B, with a 12.7% 5-year CAGR.

Trailing-twelve-month margins: gross margin 70.5%, operating margin 26.8%, net margin 21.5%.

At the current price of $267.28, JNJ trades at a P/E of 30.82 and an ROE of 25.74%. Market capitalisation stands at $644.1B, placing it among large-cap names.

Balance sheet quality for JNJ: current ratio of 1.0. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio30.82
Price / Book7.66
EV / EBITDA19.87
Dividend Yield1.98%

Valuation Models

DCF Fair Value$282.96
vs Current Price+5.9%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
JNJJohnson & Johnson$644.1B30.827.6625.7%
MRKMerck & Co., Inc.$355.5B115.048.546.6%
AMGNAmgen Inc.$203.1B23.2017.3989.3%
GILDGilead Sciences, Inc.$183.4B15.77-16.3%
ABBVAbbVie Inc.$445.7B73.77-129.2%
AZNAstraZeneca PLC$252.6B25.105.1721.7%
NVSNovartis AG$263.6B21.266.4129.6%
NVONovo Nordisk A/S$185.3B9.725.1059.1%

Price

Price$267.28
Market Cap$644.1B
ExchangeNYSE
CountryUS

Profitability

Return on Equity25.74%
Return on Invested Capital13.89%
Return on Assets10.46%
Gross Margin70.45%
Operating Margin26.81%
Net Margin21.48%

Related companies: ABBV · AMGN · AZN · GILD · MRK · NVO · NVS

Explore sector: Healthcare · Drug Manufacturers - General

More sections of JNJ: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

Discover more: Radar — undervalued stock signals · Investment Academy — learn to analyze stocks