Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Johnson & Johnson, current price multiples

Microsoft Excel LibreOffice Calc
Johnson & Johnson AbbVie Inc. Amgen Inc. 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) $178.82
No. shares of common stock outstanding 2,631,401,804
Growth rate (g) -18.32%
 
Earnings per share (EPS) $7.93
Next year expected EPS $6.48
Operating profit per share $8.89
Sales per share $35.64
Book value per share (BVPS) $28.13
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 22.54 23.70 22.24 51.31 12.73 18.02 4.64 13.11 9.08 28.10 38.45 19.01 21.14
Price to next year expected earnings 27.59 24.97 19.61 37.31 18.04 9.52 11.92 7.07 24.95 26.79 17.26 19.38
Price to operating profit (P/OP) 20.11 15.26 17.16 45.05 7.99 18.76 4.26 14.82 8.20 21.65 28.38 16.56 17.40
Price to sales (P/S) 5.02 4.87 5.39 10.11 2.93 4.83 3.20 3.54 4.56 5.54 10.07 4.97 2.77
Price to book value (P/BV) 6.36 17.75 19.56 31.89 3.76 6.16 4.00 3.73 3.91 5.32 17.24 6.85 5.49

Based on: 10-K (reporting date: 2021-12-31).

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 LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017
Price to earnings (P/E) 20.93 28.92 25.99 23.74 268.10
Price to operating profit (P/OP) 18.68 21.84 19.83 18.34 18.94
Price to sales (P/S) 4.66 5.15 4.79 4.45 4.56
Price to book value (P/BV) 5.90 6.72 6.61 6.08 5.79

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31).

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 2019 to 2020 but then decreased significantly from 2020 to 2021.
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 increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
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 increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
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 increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017
No. shares of common stock outstanding1 2,629,268,158 2,628,679,824 2,634,721,257 2,663,138,579 2,682,901,553
Selected Financial Data (US$)
Net earnings (in millions) 20,878  14,714  15,119  15,297  1,300 
Earnings per share (EPS)2 7.94 5.60 5.74 5.74 0.48
Share price1, 3 166.19 161.87 149.14 136.35 129.91
Valuation Ratio
P/E ratio4 20.93 28.92 25.99 23.74 268.10
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 22.07 40.17 17.82 20.60 35.47
Amgen Inc. 21.05 18.82 17.07 14.01 64.06
Eli Lilly & Co. 40.66 31.95 16.19 39.13
Gilead Sciences Inc. 12.36 641.48 16.45 15.26 22.75
Merck & Co. Inc. 14.78 26.72 20.60 33.46 61.63
Moderna Inc. 5.00
Pfizer Inc. 11.76 19.62 11.63 21.58 9.99
Regeneron Pharmaceuticals Inc. 8.37 15.09 19.86 18.17 28.99
Thermo Fisher Scientific Inc. 27.35 27.89 33.36 35.19 37.66
Zoetis Inc. 45.82 48.25 45.89 28.68 44.09
P/E Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 17.40 29.38 19.70 23.47 33.43
P/E Ratio, Industry
Health Care 20.33 32.08 21.90 24.86 30.51

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 20,878,000,000 ÷ 2,629,268,158 = 7.94

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 166.19 ÷ 7.94 = 20.93

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 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017
No. shares of common stock outstanding1 2,629,268,158 2,628,679,824 2,634,721,257 2,663,138,579 2,682,901,553
Selected Financial Data (US$)
Operating earnings (in millions) 23,395  19,486  19,814  19,798  18,405 
Operating profit per share2 8.90 7.41 7.52 7.43 6.86
Share price1, 3 166.19 161.87 149.14 136.35 129.91
Valuation Ratio
P/OP ratio4 18.68 21.84 19.83 18.34 18.94
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 14.21 16.32 10.82 18.35 19.63
Amgen Inc. 16.24 14.96 13.84 11.46 12.71
Eli Lilly & Co. 35.70 32.66 27.08 33.99 39.61
Gilead Sciences Inc. 7.76 19.38 20.66 10.15 7.45
Merck & Co. Inc. 15.39 23.89 17.47 25.08 22.58
Moderna Inc. 4.59
Pfizer Inc. 13.30 23.12 14.36 17.19 15.62
Regeneron Pharmaceuticals Inc. 7.55 14.82 19.01 17.53 16.71
Thermo Fisher Scientific Inc. 21.07 22.81 26.84 27.33 28.24
Zoetis Inc. 33.82 35.22 35.00 22.59 22.33
P/OP Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 15.16 22.44 18.01 18.52 16.89
P/OP Ratio, Industry
Health Care 16.74 22.87 17.76 18.21 16.96

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= 23,395,000,000 ÷ 2,629,268,158 = 8.90

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 166.19 ÷ 8.90 = 18.68

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 increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017
No. shares of common stock outstanding1 2,629,268,158 2,628,679,824 2,634,721,257 2,663,138,579 2,682,901,553
Selected Financial Data (US$)
Sales to customers (in millions) 93,775  82,584  82,059  81,581  76,450 
Sales per share2 35.67 31.42 31.15 30.63 28.50
Share price1, 3 166.19 161.87 149.14 136.35 129.91
Valuation Ratio
P/S ratio4 4.66 5.15 4.79 4.45 4.56
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 4.53 4.05 4.22 3.58 6.67
Amgen Inc. 5.10 5.64 6.03 5.22 5.82
Eli Lilly & Co. 8.01 8.06 6.03 5.15 3.71
Gilead Sciences Inc. 2.85 3.24 4.00 3.84 4.10
Merck & Co. Inc. 3.96 3.93 4.33 4.92 3.68
Moderna Inc. 3.45 309.64
Pfizer Inc. 3.18 4.50 3.66 4.49 4.05
Regeneron Pharmaceuticals Inc. 4.20 6.24 5.34 6.62 5.92
Thermo Fisher Scientific Inc. 5.39 5.52 4.83 4.24 4.01
Zoetis Inc. 12.00 11.84 11.00 7.03 7.18
P/S Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.55 5.23 4.77 4.59 4.57
P/S Ratio, Industry
Health Care 2.66 2.65 2.48 2.47 2.43

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Sales to customers ÷ No. shares of common stock outstanding
= 93,775,000,000 ÷ 2,629,268,158 = 35.67

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 166.19 ÷ 35.67 = 4.66

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 increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017
No. shares of common stock outstanding1 2,629,268,158 2,628,679,824 2,634,721,257 2,663,138,579 2,682,901,553
Selected Financial Data (US$)
Shareholders’ equity (in millions) 74,023  63,278  59,471  59,752  60,160 
Book value per share (BVPS)2 28.15 24.07 22.57 22.44 22.42
Share price1, 3 166.19 161.87 149.14 136.35 129.91
Valuation Ratio
P/BV ratio4 5.90 6.72 6.61 6.08 5.79
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 16.53 14.18 36.95
Amgen Inc. 18.51 14.53 13.84 9.41 5.02
Eli Lilly & Co. 25.28 35.07 51.67 12.87 7.33
Gilead Sciences Inc. 3.65 4.33 3.93 3.89 5.15
Merck & Co. Inc. 5.05 7.46 7.83 7.79 4.30
Moderna Inc. 4.31 24.16 8.21 4.29
Pfizer Inc. 3.35 2.98 3.00 3.80 2.98
Regeneron Pharmaceuticals Inc. 3.60 4.81 3.79 5.07 5.66
Thermo Fisher Scientific Inc. 5.18 5.15 4.16 3.75 3.30
Zoetis Inc. 20.55 20.97 25.42 18.74 21.52
P/BV Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.27 7.09 6.94 6.45 5.24
P/BV Ratio, Industry
Health Care 5.28 5.20 4.91 4.89 4.51

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 74,023,000,000 ÷ 2,629,268,158 = 28.15

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 166.19 ÷ 28.15 = 5.90

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 increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.