Johnson Johnson's market value is the price at which a share of Johnson Johnson stock trades on a public exchange. It measures the collective expectations of Johnson Johnson investors about the entity's future performance. With this module, you can estimate the performance of a buy and hold strategy of Johnson Johnson and determine expected loss or profit from investing in Johnson Johnson over a given investment horizon. Check out Johnson Johnson Correlation, Johnson Johnson Volatility and Johnson Johnson Alpha and Beta module to complement your research on Johnson Johnson.
Is Johnson Johnson's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Johnson Johnson. If investors know Johnson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Johnson Johnson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
Revenue Per Share
Quarterly Revenue Growth
The market value of Johnson Johnson is measured differently than its book value, which is the value of Johnson that is recorded on the company's balance sheet. Investors also form their own opinion of Johnson Johnson's value that differs from its market value or its book value, called intrinsic value, which is Johnson Johnson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Johnson Johnson's market value can be influenced by many factors that don't directly affect Johnson Johnson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Johnson Johnson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Johnson Johnson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Johnson Johnson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Johnson Johnson 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Johnson Johnson's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Johnson Johnson.
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Johnson Johnson's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Johnson Johnson upside and downside potential and time the market with a certain degree of confidence.
Today, many novice investors tend to focus exclusively on investment returns with little concern for Johnson Johnson's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Johnson Johnson's standard deviation. In reality, there are many statistical measures that can use Johnson Johnson historical prices to predict the future Johnson Johnson's volatility.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Johnson Johnson's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Johnson Johnson in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Johnson Johnson. Your research has to be compared to or analyzed against Johnson Johnson's peers to derive any actionable benefits. When done correctly, Johnson Johnson's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Johnson Johnson.
Johnson Johnson Backtested Returns
We consider Johnson Johnson very steady. Johnson Johnson holds Efficiency (Sharpe) Ratio of 0.0495, which attests that the entity had 0.0495% return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-nine technical indicators for Johnson Johnson, which you can use to evaluate the future volatility of the firm. Please check out Johnson Johnson's Risk Adjusted Performance of 0.0902, market risk adjusted performance of 0.1813, and Downside Deviation of 0.7961 to validate if the risk estimate we provide is consistent with the expected return of 0.035%. Johnson Johnson has a performance score of 3 on a scale of 0 to 100. The company retains a Market Volatility (i.e., Beta) of 0.57, which attests to possible diversification benefits within a given portfolio. As returns on the market increase, Johnson Johnson returns are expected to increase less than the market. However, during the bear market, the loss on holding Johnson Johnson will be expected to be smaller as well. Although it is important to respect Johnson Johnson current price history, it is better to be realistic regarding the information on the equity's current price movements. Johnson Johnson right now retains a risk of 0.71%. Please check out Johnson Johnson potential upside, and the relationship between the total risk alpha and kurtosis to decide if Johnson Johnson will be following its current trending patterns.
Almost perfect reverse predictability
Johnson Johnson has almost perfect reverse predictability. Overlapping area represents the amount of predictability between Johnson Johnson time series from 3rd of January 2024 to 2nd of February 2024 and 2nd of February 2024 to 3rd of March 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Johnson Johnson price movement. The serial correlation of -0.8 indicates that around 80.0% of current Johnson Johnson price fluctuation can be explain by its past prices.
Spearman Rank Test
Johnson Johnson lagged returns against current returns
Autocorrelation, which is Johnson Johnson stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Johnson Johnson's stock expected returns. We can calculate the autocorrelation of Johnson Johnson returns to help us make a trade decision. For example, suppose you find that Johnson Johnson stock has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the stock movement to match the lagging time series.
Current and Lagged Values
Johnson Johnson regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Johnson Johnson stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Johnson Johnson stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Johnson Johnson stock over time.
Current vs Lagged Prices
Johnson Johnson Lagged Returns
When evaluating Johnson Johnson's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Johnson Johnson stock have on its future price. Johnson Johnson autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Johnson Johnson autocorrelation shows the relationship between Johnson Johnson stock current value and its past values and can show if there is a momentum factor associated with investing in Johnson Johnson.
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When determining whether Johnson Johnson is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Johnson Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Johnson Johnson Stock. Highlighted below are key reports to facilitate an investment decision about Johnson Johnson Stock:
For more information on how to buy Johnson Stock please use our How to buy in Johnson Stock guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Complementary Tools for Johnson Stock analysis
When running Johnson Johnson's price analysis, check to measure Johnson Johnson's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Johnson Johnson is operating at the current time. Most of Johnson Johnson's value examination focuses on studying past and present price action to predict the probability of Johnson Johnson's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Johnson Johnson's price. Additionally, you may evaluate how the addition of Johnson Johnson to your portfolios can decrease your overall portfolio volatility.
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Johnson Johnson technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Johnson Johnson technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Johnson Johnson trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...
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