Johnson & Johnson (JNJ)

Enterprise Value (EV)

Difficulty: Intermediate

Current Enterprise Value (EV)

Johnson & Johnson, current enterprise value calculation

Current share price (P)	$ 126.66
No. shares of common stock outstanding	2,682,901,553
USD $ in millions
Common equity (market value)	339,816
Add: Preferred stock, without par value, unissued (per books)	–
Total equity	339,816
Add: Loans and notes payable (per books)	3,906
Add: Long-term debt, excluding current portion (per books)	30,675
Total equity and debt	374,397
Less: Cash and cash equivalents	17,824
Less: Marketable securities	472
Enterprise value (EV)	356,101

Historical Enterprise Value (EV)

Johnson & Johnson, EV calculation

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 28, 2014	Dec 29, 2013
	No. shares of common stock outstanding¹	2,682,901,553	2,713,346,602	2,759,359,192	2,780,488,708	2,828,901,694
	Share price^1, 2 (USD $)	129.91	122.40	104.96	100.70	91.52
	USD $ in millions
	Common equity (market value)	348,536	332,114	289,622	279,995	258,901
	Add: Preferred stock, without par value, unissued (per books)	–	–	–	–	–
	Total equity	348,536	332,114	289,622	279,995	258,901
	Add: Loans and notes payable (per books)	3,906	4,684	7,004	3,638	4,852
	Add: Long-term debt, excluding current portion (per books)	30,675	22,442	12,857	15,122	13,328
	Total equity and debt	383,117	359,240	309,483	298,755	277,081
	Less: Cash and cash equivalents	17,824	18,972	13,732	14,523	20,927
	Less: Marketable securities	472	22,935	24,644	18,566	8,279
	Enterprise value (EV)	364,821	317,333	271,107	265,666	247,875

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Johnson & Johnson's Annual Report.

Item	Description	The company
EV	Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.	Johnson & Johnson's EV increased from 2015 to 2016 and from 2016 to 2017.