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

Johnson & Johnson (JNJ) — Price $273.20 (closing price, October 30, 2026) — Healthcare — Drug Manufacturers - General — NYSE

Latest reported results:

Valuation dashboard for Johnson & Johnson (JNJ) with P/E 41.42, P/B 8.37, EV/EBITDA 22.67 and dividend yield 1.89%. DCF, Graham Number, EPS growth, peer multiples and dividend discount 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 68.8%, operating margin 25.7%, net margin 16.2%.

At $273.20 (closing price, October 30, 2026), JNJ trades at a P/E of 41.42 and an ROE of 19.55%. Market capitalisation stands at $657.7B, 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 Ratio41.42
Price / Book8.37
EV / EBITDA22.67
Dividend Yield1.89%

Valuation Models

DCF Fair Value$289.92
vs Current Price+6.1%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
JNJJohnson & Johnson$657.7B41.428.3719.6%
MRKMerck & Co., Inc.$368.9B119.628.845.1%
AMGNAmgen Inc.$251.9B28.9621.5389.3%
GILDGilead Sciences, Inc.$211.6B16.26-21.7%
SNYSanofi$106.9B23.291.325.5%
ABBVAbbVie Inc.$521.1B83.08-136.5%
AZNAstraZeneca PLC$289.5B28.035.7421.7%
NVSNovartis AG$303.7B30.698.2224.2%

Price

Price$273.20 (closing price, October 30, 2026)
Market Cap$657.7B
ExchangeNYSE
CountryUS

Profitability

Return on Equity19.55%
Return on Invested Capital15.36%
Return on Assets8.15%
Gross Margin68.81%
Operating Margin25.70%
Net Margin16.20%

Related companies: MRK · AMGN · GILD · SNY · ABBV · AZN · NVS · PFE

Explore sector: Healthcare · Drug Manufacturers - General

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

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