Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Johnson & Johnson, FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Net earnings 35,153 17,941 20,878 14,714 15,119
Net noncash charges (14,869) 7,264 6,770 6,132 4,432
Changes in assets and liabilities, net of effects from acquisitions and divestitures 2,507 (4,011) (4,238) 2,690 3,865
Net cash flows from operating activities 22,791 21,194 23,410 23,536 23,416
Cash paid during the year for interest, net of amount capitalized, net of tax1 1,563 771 863 750 808
Interest expense capitalized, net of tax2 62 40 45 56 61
Additions to property, plant and equipment (4,543) (4,009) (3,652) (3,347) (3,498)
Free cash flow to the firm (FCFF) 19,873 17,996 20,666 20,995 20,787

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Johnson & Johnson suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Johnson & Johnson FCFF decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Interest Paid, Net of Tax

Johnson & Johnson, interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Effective Income Tax Rate (EITR)
EITR1 11.50% 17.40% 8.30% 10.80% 12.70%
Interest Paid, Net of Tax
Cash paid during the year for interest, net of amount capitalized, before tax 1,766 933 941 841 925
Less: Cash paid during the year for interest, net of amount capitalized, tax2 203 162 78 91 117
Cash paid during the year for interest, net of amount capitalized, net of tax 1,563 771 863 750 808
Interest Costs Capitalized, Net of Tax
Interest expense capitalized, before tax 70 49 49 63 70
Less: Interest expense capitalized, tax3 8 9 4 7 9
Interest expense capitalized, net of tax 62 40 45 56 61

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 See details »

2 2023 Calculation
Cash paid during the year for interest, net of amount capitalized, tax = Cash paid during the year for interest, net of amount capitalized × EITR
= 1,766 × 11.50% = 203

3 2023 Calculation
Interest expense capitalized, tax = Interest expense capitalized × EITR
= 70 × 11.50% = 8


Enterprise Value to FCFF Ratio, Current

Johnson & Johnson, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 384,003
Free cash flow to the firm (FCFF) 19,873
Valuation Ratio
EV/FCFF 19.32
Benchmarks
EV/FCFF, Competitors1
AbbVie Inc. 15.09
Amgen Inc. 21.13
Bristol-Myers Squibb Co. 9.56
Eli Lilly & Co. 669.60
Gilead Sciences Inc. 13.36
Merck & Co. Inc. 35.84
Pfizer Inc. 32.39
Regeneron Pharmaceuticals Inc. 24.65
Thermo Fisher Scientific Inc. 29.75
Vertex Pharmaceuticals Inc. 28.31
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences 26.82
EV/FCFF, Industry
Health Care 23.78

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Johnson & Johnson, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 383,498 428,242 439,101 435,585 401,351
Free cash flow to the firm (FCFF)2 19,873 17,996 20,666 20,995 20,787
Valuation Ratio
EV/FCFF3 19.30 23.80 21.25 20.75 19.31
Benchmarks
EV/FCFF, Competitors4
AbbVie Inc. 14.89 12.15 13.18 13.95 11.60
Amgen Inc. 22.22 16.01 15.82 14.51 16.05
Bristol-Myers Squibb Co. 9.14 13.87 10.52 11.63 23.39
Eli Lilly & Co. 655.33 59.14 38.37 39.01 36.26
Gilead Sciences Inc. 13.41 13.58 8.42 13.60 9.78
Merck & Co. Inc. 37.84 19.09 23.27 34.12 20.46
Pfizer Inc. 32.24 9.15 8.40 21.74 19.44
Regeneron Pharmaceuticals Inc. 23.99 17.96 9.81 25.74 19.54
Thermo Fisher Scientific Inc. 28.85 31.61 33.14 26.14 28.88
Vertex Pharmaceuticals Inc. 29.45 16.68 22.47 16.00 38.30
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences 26.78 17.53 15.50 19.16 18.87
EV/FCFF, Industry
Health Care 23.80 17.71 17.21 17.77 18.34

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 383,498 ÷ 19,873 = 19.30

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Johnson & Johnson EV/FCFF ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.