Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Paying user area
Try for free
Johnson & Johnson pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Johnson & Johnson for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Current Valuation Ratios
Johnson & Johnson, current price multiples
| Johnson & Johnson | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | |||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||
| Growth rate (g) | |||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||
| Next year expected EPS | |||||||||||||||||
| Operating profit per share | |||||||||||||||||
| Sales per share | |||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||
| Price-earnings-growth (PEG) | |||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2025-12-28).
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
| Dec 28, 2025 | Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-28), 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios exhibit varied trends over the five-year period. Generally, ratios decreased from 2021 to 2023, followed by increases in 2024 and 2025, though not uniformly across all metrics. This suggests a shifting perception of value by the market during this time.
- Price to Earnings (P/E)
- The Price to Earnings ratio decreased significantly from 2021 to 2023, moving from 20.93 to 10.73. This indicates a substantial decline in the price investors were willing to pay for each dollar of earnings. A subsequent increase to 26.92 in 2024 was observed, followed by a slight decrease to 21.66 in 2025. The 2024 peak represents a considerable rebound, exceeding the initial 2021 level.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio demonstrated relative stability between 2021 and 2023, fluctuating between 17.62 and 18.68. A modest increase was noted in 2024, reaching 18.20, and a more pronounced increase in 2025, rising to 22.95. This suggests improving investor confidence in the company’s operational profitability towards the end of the period.
- Price to Sales (P/S)
- The Price to Sales ratio experienced a slight decrease from 4.66 in 2021 to 4.34 in 2022, followed by a period of relative stability. However, a notable increase to 6.16 was recorded in 2025. This indicates a growing willingness to pay for each dollar of revenue generated, potentially reflecting expectations of increased sales growth or improved revenue quality.
- Price to Book Value (P/BV)
- The Price to Book Value ratio decreased from 5.90 in 2021 to 5.37 in 2022, then remained relatively stable through 2024 at approximately 5.4. A significant increase to 7.12 was observed in 2025. This suggests a re-evaluation of the company’s net asset value by the market, with investors assigning a higher premium to the book value of equity in the most recent year.
Overall, the observed patterns suggest a period of market reassessment followed by renewed positive sentiment. The increases in most ratios in 2024 and 2025 warrant further investigation to determine the underlying drivers of this shift.
Price to Earnings (P/E)
Johnson & Johnson, historical P/E calculation, comparison to benchmarks
| Dec 28, 2025 | Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net earnings (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-28), 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson & Johnson Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited considerable fluctuation over the observed period. Initial values demonstrated a moderate level, followed by a significant decline and subsequent increase, culminating in a substantial rise by the final reporting date.
- Overall Trend
- The P/E ratio initially increased from 20.93 in 2021 to 22.97 in 2022, suggesting a potentially increasing investor confidence or a relative increase in share price compared to earnings. However, a dramatic decrease to 10.73 occurred in 2023, indicating a substantial increase in earnings relative to the share price, or a significant decline in investor sentiment. The ratio then rose sharply to 26.92 in 2024, before moderating slightly to 21.66 in 2025.
- Share Price and EPS Relationship
- The share price experienced a decline from 2021 to 2023, followed by increases in 2024 and a substantial increase in 2025. Earnings per share (EPS) mirrored this pattern, with a decrease in 2022, a significant increase in 2023, a decrease in 2024, and a further increase in 2025. The interplay between these two factors heavily influenced the P/E ratio.
- P/E Ratio Volatility
- The P/E ratio’s volatility suggests potential shifts in market perception of the company’s future earnings potential. The low value in 2023 could indicate undervaluation, or concerns about the sustainability of the increased earnings. The subsequent increases in 2024 and 2025 suggest a reassessment of the company’s prospects, potentially driven by improved market conditions or company-specific developments.
The substantial increase in the P/E ratio in 2024 and 2025, coupled with the corresponding increase in share price and EPS, warrants further investigation to determine the underlying drivers of this change and its implications for future valuation.
Price to Operating Profit (P/OP)
Johnson & Johnson, historical P/OP calculation, comparison to benchmarks
| Dec 28, 2025 | Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating earnings (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-28), 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson & Johnson Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited a generally stable pattern from 2021 to 2023, followed by a notable increase in 2024 and a further substantial rise in 2025. This analysis details the observed trends in the P/OP ratio alongside its constituent components, share price and operating profit per share.
- P/OP Ratio Trend
- The P/OP ratio began at 18.68 in 2021, decreased to 17.62 in 2022, and then slightly increased to 17.78 in 2023. A moderate increase to 18.20 was observed in 2024. However, the most significant change occurred in 2025, with the P/OP ratio rising sharply to 22.95. This indicates a growing premium investors were willing to pay for each dollar of operating profit generated by the company.
- Share Price Trend
- The share price experienced a decline from US$166.19 in 2021 to US$156.55 in 2023. It showed a slight recovery to US$157.25 in 2024, but then increased substantially to US$240.86 in 2025. This substantial increase in share price is a key driver of the higher P/OP ratio observed in the final year.
- Operating Profit Per Share Trend
- Operating profit per share remained relatively consistent between 2021 and 2023, fluctuating between US$8.80 and US$8.98. A slight decrease to US$8.64 was noted in 2024. However, operating profit per share increased significantly in 2025, reaching US$10.49. This increase in profitability contributed to the elevated P/OP ratio, although the share price increase had a more pronounced effect.
The increase in the P/OP ratio in 2025 is attributable to a combination of factors: a substantial increase in the share price and a notable increase in operating profit per share. The share price increase appears to be the dominant factor, suggesting a shift in investor sentiment or expectations regarding future growth. The relatively stable operating profit per share from 2021 to 2024, followed by a significant increase in 2025, indicates improving operational performance in the latest period.
Price to Sales (P/S)
Johnson & Johnson, historical P/S calculation, comparison to benchmarks
| Dec 28, 2025 | Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Sales to customers (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-28), 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Sales to customers ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson & Johnson Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited a fluctuating pattern over the observed period. Initially, the ratio decreased from 2021 to 2022, then stabilized before increasing significantly in the most recent year.
- Price-to-Sales Ratio Trend
- The price-to-sales ratio began at 4.66 in 2021. A decline was noted in 2022, with the ratio falling to 4.34. This was followed by a slight increase to 4.43 in 2023 and a further decrease to 4.26 in 2024. A substantial increase is observed in 2025, with the ratio reaching 6.16.
- Share Price and Sales per Share Relationship
- The share price experienced a decrease from 2021 to 2023, moving from US$166.19 to US$156.55. A modest increase occurred in 2024 to US$157.25, followed by a significant rise to US$240.86 in 2025. Sales per share demonstrated a slight increase from US$35.67 in 2021 to US$36.46 in 2022, followed by a decrease to US$35.35 in 2023. It then increased to US$36.89 in 2024 and further to US$39.09 in 2025. The substantial increase in the price-to-sales ratio in 2025 appears to be driven by a combination of a significant increase in share price and a moderate increase in sales per share.
The observed fluctuations suggest a dynamic valuation influenced by both market sentiment and underlying sales performance. The considerable increase in the ratio during the final year warrants further investigation to determine the sustainability of this trend.
Price to Book Value (P/BV)
Johnson & Johnson, historical P/BV calculation, comparison to benchmarks
| Dec 28, 2025 | Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-28), 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson & Johnson Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value ratio exhibited a generally stable pattern from 2021 through 2023, followed by a notable increase in 2024 and 2025. This analysis details the observed trends and potential implications.
- Price to Book Value (P/BV) Trend
- The P/BV ratio began at 5.90 in 2021, decreased to 5.37 in 2022, and then slightly increased to 5.48 in 2023. A further slight decrease to 5.30 was observed in 2024. However, the ratio experienced a significant jump to 7.12 in 2025.
- Share Price and Book Value per Share
- The share price decreased from US$166.19 in 2021 to US$156.55 in 2023, before increasing to US$157.25 in 2024 and substantially rising to US$240.86 in 2025. Book value per share showed a more moderate trend, increasing from US$28.15 in 2021 to US$29.49 in 2022, decreasing to US$28.55 in 2023, and then increasing to US$29.69 in 2024 and US$33.84 in 2025.
- Relationship between Share Price and Book Value
- The initial stability in the P/BV ratio from 2021 to 2023 suggests a relatively consistent market valuation of the company’s net assets. The substantial increase in the P/BV ratio in 2025, coupled with the significant rise in share price, indicates that the market began to place a considerably higher premium on the company’s book value. This could be attributable to improved market sentiment, anticipated future growth, or changes in profitability not reflected in book value.
The observed increase in P/BV in the most recent periods warrants further investigation to determine the underlying drivers of this change and assess its sustainability.