Johnson & Johnson (NYSE:JNJ)

Price to Earnings (P/E) Ratio

Over the analyzed periods, the P/E ratio exhibits notable fluctuation. Initially, it shows a declining trend from 28.35 down to approximately 20.93 by the end of 2021, indicating a potential market reassessment of earnings value. In 2022, the ratio stabilizes mostly in the low to mid-20s before experiencing a sharp decline in the latter part of 2023 to levels around 10. This significant drop may reflect an increase in earnings or a decrease in market price. Subsequently, the ratio increases again through 2024, peaking at 27.19 before settling around the high teens by late 2025. The overall pattern suggests cyclical investor sentiment towards earnings valuation with periods of both compression and expansion.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a generally downward trend in the first half of the data, moving from about 21.12 down to approximately 17.62 by the end of 2022. This decline implies a growing operating profit relative to the market price or a contract in price relative to operating profit. In 2023, the ratio dips further to a low near 15.69, indicating improved operating profitability relative to market valuation. Through 2024 and into 2025, the P/OP ratio gradually climbs back toward the upper teens, ending slightly below 20. This progression points to cyclical shifts in operating profit valuation, mirroring some of the P/E ratio movements but with less pronounced volatility.

Price to Sales (P/S) Ratio

The P/S ratio shows a steady downward trajectory from just over 5.0 at the start to a low near 4.34 by the end of 2022. This suggests either increasing sales relative to price or a market valuation adjustment. In early 2023, the ratio slightly recovers to around 4.84, followed by moderate fluctuation around the mid-4 range. Toward the end of the observed timeline, the ratio rises again, reaching just above 5.0 by late 2025. This pattern implies fluctuating sales valuations with periods of relative undervaluation and renewed investor interest in sales growth potential.

Price to Book Value (P/BV) Ratio

The P/BV ratio exhibits a gradual decline from above 6.5 early on to roughly 5.37 by the end of 2022, reflecting either an increase in book value or relative price softening. During 2023, the ratio bottoms out near 4.92, the lowest point in the series, indicating the strongest book value relative to price in the observed timeframe. Afterward, a moderate recovery is apparent as the ratio fluctuates between 5.2 and 5.86 through 2025. This indicates some restoration of market confidence in asset valuation, but the ratio remains below initial peak levels, highlighting moderate market caution or stronger asset base growth over time.

Share Price

The share price exhibited fluctuations throughout the observed periods. Initially, it rose from $162.73 to a peak above $180 by early 2022, followed by a gradual decline toward the end of 2022, reaching near $158. There was some recovery in early 2023 with prices stabilizing around the mid-150s to mid-160s. The latter part of 2023 saw moderate increases, and a noteworthy upward trend was evident from the first quarter of 2024 onwards, culminating in a significant price rise, reaching approximately $193 by late 2025.

Earnings Per Share (EPS)

EPS demonstrated variability with an overall strong growth pattern, particularly marked by a sharp increase in the fourth quarter of 2023, peaking around 14.38 and sustaining above 15 in early 2024. Prior to this spike, EPS remained relatively stable with moderate fluctuations around 6 to 8. Post peak, EPS experienced a decline back to the mid single digits in mid-2024, then rose again moderately toward the latter periods, ending near 10.4. The EPS trend indicates episodic profitability surges followed by partial contractions.

Price-to-Earnings (P/E) Ratio

The P/E ratio reflected significant volatility corresponding with earnings and share price changes. It decreased steadily from approximately 28 in early 2021 to a low near 9.5-10 by early 2024, coinciding with the EPS surge and relatively stable share prices, indicating the stock was becoming more attractively valued relative to earnings. Following this period, the P/E rose again above 27 in mid-2024, reflecting the subsequent EPS decline and share price trends, then settled between 17 and 18 by late 2025. This oscillation reveals changing market perceptions of the company’s earnings quality and growth prospects over time.

Share Price Trends

The share price demonstrated fluctuations over the observed periods. Initially, there was an upward trend from $162.73 to a peak of around $180.46 by April 2022. Subsequently, the share price experienced a decline to approximately $145.60 by October 2023. From that low point, the price gradually recovered, reaching $192.94 by the end of September 2025, which marks the highest value in the series. Overall, the share price showed volatility but achieved growth over the longer term.

Operating Profit per Share (OPPS)

The operating profit per share remained relatively stable across the given time frame. Starting from $7.71, it increased steadily to a high near $9.73 by September 2025. Minor fluctuations occurred, with some quarters showing slight declines or plateaus, but the general trend was positive, indicating improving operational profitability on a per-share basis.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio, which measures the valuation of the stock relative to its operating profit, showed a moderate downward trend initially, declining from around 21.12 to the lowest point of 15.69 by October 2023. After this trough, the ratio demonstrated an upward movement, reaching approximately 19.83 by September 2025. This pattern suggests periods of undervaluation followed by a partial correction, with current valuation levels still somewhat below earlier highs.

Overall Insights

The data reflects a company with stable and gradually improving operating profitability, as indicated by the consistent increase in operating profit per share. Share price movements exhibit some volatility but reveal an overall growth by the end of the period. The P/OP ratio trends indicate varying market sentiment or valuation shifts, with a notable period of relatively lower valuation around late 2023, followed by recovery. The divergence between share price and P/OP ratio trends in some periods suggests that the market at times priced the stock more conservatively relative to its underlying operating profit, later adjusting to a higher valuation. This could reflect external market conditions or investor perceptions influencing price apart from operational performance.

Share Price Trend

The share price experienced fluctuations over the observed periods. Initially, there was an upward movement from around $162.73 to a peak near $180.46 in early 2022. Subsequently, the price showed some volatility with intermittent declines and recoveries, reaching as low as approximately $145.60 in late 2023. More recently, the share price increased significantly, finishing near $192.94 by the end of the last period. This indicates a general recovery and growth phase towards the end of the timeline.

Sales per Share Trend

Sales per share showed a mostly stable and gradual upward trend throughout the periods. Starting near $31.98, the figure increased steadily with minor fluctuations, reaching $38.25 by the end of the observed timeline. This steady increase suggests consistent revenue generation improvement on a per-share basis over time.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio exhibited variability that corresponds inversely to sales per share and share price movements. It began around 5.09, experienced a notable dip to the mid-4s in the middle periods, particularly dropping towards 4.01 in late 2023. Thereafter, the ratio showed an increasing trend again, peaking near 5.04 at the end of the timeline. These changes reflect relative shifts in valuation, with lower ratios indicating potentially more attractive valuation relative to sales during mid-periods and higher ratios indicating increased valuation in recent quarters.

Overall Observations

The data reveals a company experiencing moderate share price volatility while maintaining steady growth in sales per share. The fluctuations in the P/S ratio suggest changing investor sentiment or valuation adjustments relative to sales performance. Despite short-term declines in share price and valuation ratios, the recent upward movements in both share price and P/S ratio indicate renewed market confidence and potential growth prospects heading into the latest periods.

The financial data exhibits several notable trends over the analyzed periods.

Share Price

The share price demonstrated fluctuations throughout the quarters. Initially, the price rose from 162.73 US$ to a peak near 180.46 US$ during the early part of 2022. Following this peak, there was a general downward trend throughout the latter part of 2022 and into 2023, reaching lows around 145.6 US$. From mid-2023 onward, the share price displayed a recovery trajectory, culminating in a significant increase up to 192.94 US$ by the end of the observed period in late 2025, suggesting renewed investor confidence and positive performance expectations.

Book Value Per Share (BVPS)

Book value per share showed a consistent incremental growth over the entire timeline. Starting at 25 US$, it steadily increased to 32.9 US$ by late 2025. This gradual rise indicates a strengthening equity base per share, reflecting either retained earnings accumulation or asset growth exceeding liabilities on a per-share basis.

Price-to-Book Value Ratio (P/BV)

The price-to-book value ratio experienced volatility consistent with the share price movements. Initially high near 6.51, the ratio declined gradually to a low around 4.79 by mid-2025, indicating that the market valuation relative to equity per share contracted during that period. After this low, the ratio rose again to approximately 5.86 toward the end of 2025. This pattern suggests fluctuations in market sentiment and/or perceived growth prospects relative to the company’s net asset value.

In summary, the data reveals a company with steadily improving book value, a volatile but ultimately upward trending share price, and a price-to-book ratio that mirrors market valuation changes relative to the company's equity. The increasing book value per share supports fundamental strength, while the recovery and final upward trend in share price signal positive market reassessment over time.