Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Johnson & Johnson (NYSE:JNJ)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Johnson & Johnson, current price multiples

Microsoft Excel LibreOffice Calc
Johnson & Johnson AbbVie Inc. Amgen Inc. Eli Lilly & Co. Gilead Sciences Inc. Illumina Inc. Merck & Co. Inc. Pfizer Inc. Regeneron Pharmaceuticals Inc. Thermo Fisher Scientific Inc. Zoetis Inc. Pharmaceuticals, Biotechnology & Life Sciences Health Care
Selected Financial Data
Current share price (P) $172.66
No. shares of common stock outstanding 2,633,396,003
Growth rate (g) -17.77%
 
Earnings per share (EPS) $5.59
Next year expected EPS $4.59
Operating profit per share $7.40
Sales per share $31.36
Book value per share (BVPS) $24.03
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 30.90 45.14 19.35 37.72 702.85 108.22 27.89 24.51 17.62 32.69 58.51 32.27 38.82
Price to next year expected earnings 37.58 46.26 14.89 29.38 89.44 28.80 23.10 14.14 29.51 41.10 29.62 36.08
Price to operating profit (P/OP) 23.33 18.34 15.38 38.56 21.24 122.40 24.94 28.88 17.31 26.74 42.71 24.80 28.17
Price to sales (P/S) 5.51 4.55 5.80 9.52 3.55 21.92 4.11 5.62 7.29 6.47 14.36 5.83 3.23
Price to book value (P/BV) 7.19 15.93 14.94 41.41 4.75 15.12 7.79 3.73 5.61 6.04 25.43 7.91 5.80

Based on: 10-K (filing date: 2021-02-22).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Johnson & Johnson, historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Price to earnings (P/E) 28.92 25.99 23.74 268.10 20.08
Price to operating profit (P/OP) 21.84 19.83 18.34 18.94 16.09
Price to sales (P/S) 5.15 4.79 4.45 4.56 4.62
Price to book value (P/BV) 6.72 6.61 6.08 5.79 4.72

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Johnson & Johnson’s P/E ratio increased from 2018 to 2019 and from 2019 to 2020.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Johnson & Johnson’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Johnson & Johnson’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Johnson & Johnson’s P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

Johnson & Johnson, historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 2,628,679,824 2,634,721,257 2,663,138,579 2,682,901,553 2,713,346,602
Selected Financial Data (US$)
Net earnings (in millions) 14,714  15,119  15,297  1,300  16,540 
Earnings per share (EPS)2 5.60 5.74 5.74 0.48 6.10
Share price1, 3 161.87 149.14 136.35 129.91 122.40
Valuation Ratio
P/E ratio4 28.92 25.99 23.74 268.10 20.08
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 40.17 17.82 20.60 35.47 16.54
Amgen Inc. 18.82 17.07 14.01 64.06 16.03
Eli Lilly & Co. 31.95 16.19 39.13 32.39
Gilead Sciences Inc. 641.48 16.45 15.26 22.75 6.83
Illumina Inc. 109.92 43.43 52.00 44.63 52.01
Merck & Co. Inc. 26.72 20.60 33.46 61.63 46.14
Pfizer Inc. 19.62 11.63 21.58 9.99 28.10
Regeneron Pharmaceuticals Inc. 15.09 19.86 18.17 28.99 42.64
Thermo Fisher Scientific Inc. 27.89 33.36 35.19 37.66 30.45
Zoetis Inc. 48.25 45.89 28.68 44.09 31.63
P/E Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 28.88 19.75 23.59 33.63 20.53
P/E Ratio, Industry
Health Care 33.67 22.30 26.33 31.95 22.09

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 14,714,000,000 ÷ 2,628,679,824 = 5.60

3 Closing price as at the filing date of Johnson & Johnson’s Annual Report.

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 161.87 ÷ 5.60 = 28.92

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Johnson & Johnson’s P/E ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Operating Profit (P/OP)

Johnson & Johnson, historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 2,628,679,824 2,634,721,257 2,663,138,579 2,682,901,553 2,713,346,602
Selected Financial Data (US$)
Operating earnings (in millions) 19,486  19,814  19,798  18,405  20,645 
Operating profit per share2 7.41 7.52 7.43 6.86 7.61
Share price1, 3 161.87 149.14 136.35 129.91 122.40
Valuation Ratio
P/OP ratio4 21.84 19.83 18.34 18.94 16.09
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 16.32 10.82 18.35 19.63 10.49
Amgen Inc. 14.96 13.84 11.46 12.71 12.64
Eli Lilly & Co. 32.66 27.08 33.99 39.61 25.63
Gilead Sciences Inc. 19.38 20.66 10.15 7.45 5.23
Illumina Inc. 124.33 44.17 48.64 53.47 40.99
Merck & Co. Inc. 23.89 17.47 25.08 22.58 33.62
Pfizer Inc. 23.12 14.36 17.19 15.62 16.88
Regeneron Pharmaceuticals Inc. 14.82 19.01 17.53 16.71 28.70
Thermo Fisher Scientific Inc. 22.81 26.84 27.33 28.24 25.13
Zoetis Inc. 35.22 35.00 22.59 22.33 18.65
P/OP Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 22.19 18.09 18.68 17.16 15.09
P/OP Ratio, Industry
Health Care 24.43 18.95 19.58 18.03 15.35

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 19,486,000,000 ÷ 2,628,679,824 = 7.41

3 Closing price as at the filing date of Johnson & Johnson’s Annual Report.

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 161.87 ÷ 7.41 = 21.84

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Johnson & Johnson’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Sales (P/S)

Johnson & Johnson, historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 2,628,679,824 2,634,721,257 2,663,138,579 2,682,901,553 2,713,346,602
Selected Financial Data (US$)
Sales to customers (in millions) 82,584  82,059  81,581  76,450  71,890 
Sales per share2 31.42 31.15 30.63 28.50 26.49
Share price1, 3 161.87 149.14 136.35 129.91 122.40
Valuation Ratio
P/S ratio4 5.15 4.79 4.45 4.56 4.62
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 4.05 4.22 3.58 6.67 3.84
Amgen Inc. 5.64 6.03 5.22 5.82 5.65
Eli Lilly & Co. 8.06 6.03 5.15 3.71 4.18
Gilead Sciences Inc. 3.24 4.00 3.84 4.10 3.08
Illumina Inc. 22.26 12.28 12.89 11.77 10.03
Merck & Co. Inc. 3.93 4.33 4.92 3.68 4.54
Pfizer Inc. 4.50 3.66 4.49 4.05 3.84
Regeneron Pharmaceuticals Inc. 6.24 5.34 6.62 5.92 7.86
Thermo Fisher Scientific Inc. 5.52 4.83 4.24 4.01 3.37
Zoetis Inc. 11.84 11.00 7.03 7.18 5.31
P/S Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.21 4.82 4.66 4.64 4.32
P/S Ratio, Industry
Health Care 2.80 2.67 2.65 2.60 2.37

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Sales to customers ÷ No. shares of common stock outstanding
= 82,584,000,000 ÷ 2,628,679,824 = 31.42

3 Closing price as at the filing date of Johnson & Johnson’s Annual Report.

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 161.87 ÷ 31.42 = 5.15

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Johnson & Johnson’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

Johnson & Johnson, historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 2,628,679,824 2,634,721,257 2,663,138,579 2,682,901,553 2,713,346,602
Selected Financial Data (US$)
Shareholders’ equity (in millions) 63,278  59,471  59,752  60,160  70,418 
Book value per share (BVPS)2 24.07 22.57 22.44 22.42 25.95
Share price1, 3 161.87 149.14 136.35 129.91 122.40
Valuation Ratio
P/BV ratio4 6.72 6.61 6.08 5.79 4.72
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 14.18 36.95 21.24
Amgen Inc. 14.53 13.84 9.41 5.02 4.14
Eli Lilly & Co. 35.07 51.67 12.87 7.33 6.33
Gilead Sciences Inc. 4.33 3.93 3.89 5.15 4.88
Illumina Inc. 15.36 9.43 11.43 11.79 10.95
Merck & Co. Inc. 7.46 7.83 7.79 4.30 4.51
Pfizer Inc. 2.98 3.00 3.80 2.98 3.40
Regeneron Pharmaceuticals Inc. 4.81 3.79 5.07 5.66 8.58
Thermo Fisher Scientific Inc. 5.15 4.16 3.75 3.30 2.86
Zoetis Inc. 20.97 25.42 18.74 21.52 17.46
P/BV Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 7.07 6.99 6.54 5.31 4.75
P/BV Ratio, Industry
Health Care 5.03 4.81 4.80 4.44 4.01

Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 63,278,000,000 ÷ 2,628,679,824 = 24.07

3 Closing price as at the filing date of Johnson & Johnson’s Annual Report.

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 161.87 ÷ 24.07 = 6.72

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Johnson & Johnson’s P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.