Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Johnson & Johnson, current price multiples

Microsoft Excel
Johnson & Johnson AbbVie Inc. Amgen Inc. Bristol-Myers Squibb Co. Danaher Corp. Eli Lilly & Co. Gilead Sciences Inc. Merck & Co. Inc. Moderna 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) $145.54
No. shares of common stock outstanding 2,406,679,183
Growth rate (g) 13.14%
 
Earnings per share (EPS) $14.61
Next year expected EPS $16.53
Operating profit per share $8.81
Sales per share $35.38
Book value per share (BVPS) $28.58
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 9.96 61.22 23.85 10.41 39.80 159.32 14.31 898.49 73.62 28.89 36.42 33.20 36.59 30.70
Price to next year expected earnings 8.81 76.30 16.47 10.14 36.32 107.65 67.14 23.15 31.79 24.51 33.26 27.80
Price-earnings-growth (PEG) 0.76 0.53 4.02 4.15 3.32 7.63 1.16 2.50 0.94 3.66 2.94
Price to operating profit (P/OP) 16.52 23.34 20.28 11.47 36.29 129.28 10.66 139.26 702.71 28.22 31.84 25.80 36.50 26.01
Price to sales (P/S) 4.11 5.48 5.95 1.86 7.90 24.47 3.01 5.46 8.04 2.67 8.71 5.10 9.11 6.06 2.38
Price to book value (P/BV) 5.09 28.74 25.70 2.84 3.53 77.51 3.55 8.73 3.87 1.75 4.40 4.67 15.57 7.01 5.29

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

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
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Price to earnings (P/E) 10.73 22.97 20.93 28.92 25.99
Price to operating profit (P/OP) 17.78 17.62 18.68 21.84 19.83
Price to sales (P/S) 4.43 4.34 4.66 5.15 4.79
Price to book value (P/BV) 5.48 5.37 5.90 6.72 6.61

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).

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 P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
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 P/OP ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
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 P/S ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Johnson & Johnson P/BV ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Earnings (P/E)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
No. shares of common stock outstanding1 2,408,767,228 2,604,286,303 2,629,268,158 2,628,679,824 2,634,721,257
Selected Financial Data (US$)
Net earnings (in millions) 35,153 17,941 20,878 14,714 15,119
Earnings per share (EPS)2 14.59 6.89 7.94 5.60 5.74
Share price1, 3 156.55 158.24 166.19 161.87 149.14
Valuation Ratio
P/E ratio4 10.73 22.97 20.93 28.92 25.99
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 63.84 22.62 22.07 40.17 17.82
Amgen Inc. 23.14 19.56 21.05 18.82 17.07
Bristol-Myers Squibb Co. 12.27 23.97 20.92 41.99
Danaher Corp. 39.09 25.65 29.94 44.49 38.34
Eli Lilly & Co. 135.24 50.08 40.66 31.95 16.19
Gilead Sciences Inc. 16.17 22.68 12.36 641.48 16.45
Merck & Co. Inc. 893.99 19.21 14.78 26.72 20.60
Moderna Inc. 6.43 5.00
Pfizer Inc. 73.42 7.58 11.76 19.62 11.63
Regeneron Pharmaceuticals Inc. 25.99 19.68 8.37 15.09 19.86
Thermo Fisher Scientific Inc. 35.65 30.55 27.35 27.89 33.36
Zoetis Inc. 35.84 37.68 45.82 48.25 45.89
P/E Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 35.37 19.54 18.20 37.62 21.27
P/E Ratio, Industry
Health Care 30.19 20.56 20.16 29.80 21.39

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 35,153,000,000 ÷ 2,408,767,228 = 14.59

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 156.55 ÷ 14.59 = 10.73

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 P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Operating Profit (P/OP)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
No. shares of common stock outstanding1 2,408,767,228 2,604,286,303 2,629,268,158 2,628,679,824 2,634,721,257
Selected Financial Data (US$)
Operating earnings (in millions) 21,207 23,382 23,395 19,486 19,814
Operating profit per share2 8.80 8.98 8.90 7.41 7.52
Share price1, 3 156.55 158.24 166.19 161.87 149.14
Valuation Ratio
P/OP ratio4 17.78 17.62 18.68 21.84 19.83
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 24.34 14.78 14.21 16.32 10.82
Amgen Inc. 19.69 13.40 16.24 14.96 13.84
Bristol-Myers Squibb Co. 13.53 18.29 19.84 24.42
Danaher Corp. 35.64 20.97 25.14 36.91 34.47
Eli Lilly & Co. 109.75 43.88 35.70 32.66 27.08
Gilead Sciences Inc. 12.05 14.21 7.76 19.38 20.66
Merck & Co. Inc. 138.56 15.55 15.39 23.89 17.47
Moderna Inc. 5.71 4.59
Pfizer Inc. 700.76 6.80 13.30 23.12 14.36
Regeneron Pharmaceuticals Inc. 25.39 18.01 7.55 14.82 19.01
Thermo Fisher Scientific Inc. 31.16 25.30 21.07 22.81 26.84
Zoetis Inc. 27.86 27.31 33.82 35.22 35.00
P/OP Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 35.29 15.58 15.90 27.86 18.99
P/OP Ratio, Industry
Health Care 25.58 16.03 16.76 22.06 17.51

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 21,207,000,000 ÷ 2,408,767,228 = 8.80

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 156.55 ÷ 8.80 = 17.78

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 P/OP ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Sales (P/S)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
No. shares of common stock outstanding1 2,408,767,228 2,604,286,303 2,629,268,158 2,628,679,824 2,634,721,257
Selected Financial Data (US$)
Sales to customers (in millions) 85,159 94,943 93,775 82,584 82,059
Sales per share2 35.35 36.46 35.67 31.42 31.15
Share price1, 3 156.55 158.24 166.19 161.87 149.14
Valuation Ratio
P/S ratio4 4.43 4.34 4.66 5.15 4.79
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 5.72 4.61 4.53 4.05 4.22
Amgen Inc. 5.78 5.17 5.10 5.64 6.03
Bristol-Myers Squibb Co. 2.19 3.29 3.16 3.16 5.52
Danaher Corp. 7.76 5.79 6.37 7.01 6.29
Eli Lilly & Co. 20.77 10.96 8.01 8.06 6.03
Gilead Sciences Inc. 3.40 3.86 2.85 3.24 4.00
Merck & Co. Inc. 5.43 4.71 3.96 3.93 4.33
Moderna Inc. 5.52 2.92 3.45 309.64
Pfizer Inc. 2.66 2.37 3.18 4.50 3.66
Regeneron Pharmaceuticals Inc. 7.84 7.01 4.20 6.24 5.34
Thermo Fisher Scientific Inc. 4.99 4.73 5.39 5.52 4.83
Zoetis Inc. 9.83 9.86 12.00 11.84 11.00
P/S Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.86 4.52 4.53 5.11 4.90
P/S Ratio, Industry
Health Care 2.34 2.18 2.33 2.30 2.17

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Sales to customers ÷ No. shares of common stock outstanding
= 85,159,000,000 ÷ 2,408,767,228 = 35.35

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 156.55 ÷ 35.35 = 4.43

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 P/S ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Book Value (P/BV)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
No. shares of common stock outstanding1 2,408,767,228 2,604,286,303 2,629,268,158 2,628,679,824 2,634,721,257
Selected Financial Data (US$)
Shareholders’ equity (in millions) 68,774 76,804 74,023 63,278 59,471
Book value per share (BVPS)2 28.55 29.49 28.15 24.07 22.57
Share price1, 3 156.55 158.24 166.19 161.87 149.14
Valuation Ratio
P/BV ratio4 5.48 5.37 5.90 6.72 6.61
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 29.97 15.52 16.53 14.18
Amgen Inc. 24.94 35.01 18.51 14.53 13.84
Bristol-Myers Squibb Co. 3.35 4.88 4.07 3.55 2.80
Danaher Corp. 3.47 3.64 4.16 3.93 3.72
Eli Lilly & Co. 65.80 29.36 25.28 35.07 51.67
Gilead Sciences Inc. 4.01 4.90 3.65 4.33 3.93
Merck & Co. Inc. 8.68 6.07 5.05 7.46 7.83
Moderna Inc. 2.66 2.81 4.31 24.16 8.21
Pfizer Inc. 1.75 2.48 3.35 2.98 3.00
Regeneron Pharmaceuticals Inc. 3.96 3.77 3.60 4.81 3.79
Thermo Fisher Scientific Inc. 4.57 4.83 5.18 5.15 4.16
Zoetis Inc. 16.81 18.08 20.55 20.97 25.42
P/BV Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.78 5.66 5.83 6.30 5.91
P/BV Ratio, Industry
Health Care 5.20 4.73 4.88 4.75 4.50

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 68,774,000,000 ÷ 2,408,767,228 = 28.55

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 156.55 ÷ 28.55 = 5.48

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 required rate of return and its actual rate of return. Johnson & Johnson P/BV ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.