Johnson Johnson Valuation

JNJ Stock  USD 161.84  1.39  0.87%   
At this time, the firm appears to be overvalued. Johnson Johnson retains a regular Real Value of $152.2 per share. The prevalent price of the firm is $161.84. Our model calculates the value of Johnson Johnson from evaluating the firm fundamentals such as Current Valuation of 396.24 B, return on equity of 0.18, and Return On Asset of 0.0833 as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued assets and dropping overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Johnson Johnson's valuation include:
Price Book
5.6683
Enterprise Value
396.2 B
Enterprise Value Ebitda
16.9914
Price Sales
4.5777
Forward PE
15.1745
Johnson Johnson Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Johnson Johnson's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Free Cash Flow is expected to hike to about 19.7 B this year. Enterprise Value is expected to hike to about 418.9 B this year.
Overvalued
Today
161.84
Please note that Johnson Johnson's price fluctuation is very steady at this time. Calculation of the real value of Johnson Johnson is based on 3 months time horizon. Increasing Johnson Johnson's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Johnson Johnson is useful when determining the fair value of the Johnson stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Johnson Johnson. Since Johnson Johnson is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Johnson Stock. However, Johnson Johnson's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  161.84 Real  152.2 Target  168.46 Hype  161.98
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
151.41
Downside
152.20
Real Value
178.02
Upside
Estimating the potential upside or downside of Johnson Johnson helps investors to forecast how Johnson stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Johnson Johnson more accurately as focusing exclusively on Johnson Johnson's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.252.432.56
Details
Hype
Prediction
LowEstimatedHigh
161.19161.98162.77
Details
22 Analysts
Consensus
LowTarget PriceHigh
153.30168.46186.99
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Johnson Johnson's intrinsic value based on its ongoing forecasts of Johnson Johnson's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Johnson Johnson's closest peers. When choosing an evaluation method for Johnson Johnson, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Johnson Johnson Investments

1.1 Billion

Johnson Valuation Drivers Correlation

Many accounts on the financial statements of Johnson Johnson are highly interrelated and sometimes correlated. Consequently, when conducting Johnson's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Johnson
Click cells to compare fundamentals

Johnson Valuation Trend

Knowing Johnson Johnson's actual value is paramount for traders to make sound investment determinations. Johnson Johnson's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Johnson Johnson's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Johnson Johnson's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Johnson Market Cap

Johnson Johnson is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Health Care industry is currently estimated at about 429.79 Billion. Johnson Johnson totals roughly 389.84 Billion in market capitalization claiming about 91% of equities under Health Care industry.
Capitalization  Total debt  Revenue  Valuation  Workforce

Johnson Johnson Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Johnson Johnson's current stock value. Our valuation model uses many indicators to compare Johnson Johnson value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Johnson Johnson competition to find correlations between indicators driving Johnson Johnson's intrinsic value. More Info.
Johnson Johnson is currently regarded as number one stock in last dividend paid category among related companies. It is currently regarded as number one stock in five year return category among related companies reporting about  0.55  of Five Year Return per Last Dividend Paid. The ratio of Last Dividend Paid to Five Year Return for Johnson Johnson is roughly  1.81 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Johnson Johnson by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Johnson Johnson's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Johnson Johnson's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Johnson Johnson's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Johnson Johnson and how it compares across the competition.

About Johnson Johnson Valuation

The stock valuation mechanism determines the current worth of Johnson Johnson on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Johnson Johnson. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Johnson Johnson based exclusively on its fundamental and basic technical indicators. By analyzing Johnson Johnson's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Johnson Johnson's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Johnson Johnson. We calculate exposure to Johnson Johnson's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Johnson Johnson's related companies.
Last ReportedProjected for 2024
Gross Profit58.6 B61.5 B
Profit Margin 0.41  0.34 

Johnson Johnson Quarterly Retained Earnings

153.84 Billion

8 Steps to conduct Johnson Johnson's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Johnson Johnson's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Johnson Johnson's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Johnson Johnson's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Johnson Johnson's revenue streams: Identify Johnson Johnson's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Johnson Johnson's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Johnson Johnson's growth potential: Evaluate Johnson Johnson's management, business model, and growth potential.
  • Determine Johnson Johnson's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Johnson Johnson's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Johnson Johnson's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Johnson Johnson's value is low or high relative to the company's performance and growth projections. Determining the market value of Johnson Johnson can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Johnson Johnson represents a small ownership stake in the entity. As a stockholder of Johnson, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Johnson Johnson Dividends Analysis For Valuation

The value of Payment of Dividends and Other Cash Distributions is expected to pull down to about (12.7 B). The value of Dividend Yield is estimated to pull down to 0.03. At this time, Johnson Johnson's Earnings per Basic Share is relatively stable as compared to the past year. Earnings per Diluted Share is expected to hike to 14.81 this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to nearly 39.3 B.
Last ReportedProjected for 2024
Payment of Dividends and Other Cash Distributions-11.8 B-12.7 B
Dividend Yield 0.03  0.03 
Dividends per Basic Common Share 4.70  4.55 
There are various types of dividends Johnson Johnson can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Johnson shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Johnson Johnson directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Johnson pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Johnson Johnson by the value of the dividends paid out.

Johnson Johnson Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Johnson Johnson does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding2.6 B
Quarterly Earnings Growth Y O Y0.106
Forward Price Earnings15.1745

Johnson Johnson Current Valuation Indicators

Valuation refers to the process of determining the present value of Johnson Johnson and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Johnson we look at many different elements of the entity such as Johnson's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Johnson Johnson's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Johnson Johnson's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Johnson Johnson, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Johnson Johnson's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Johnson Johnson's worth.
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:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Johnson Johnson. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
For more information on how to buy Johnson Stock please use our How to buy in Johnson Stock guide.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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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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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
0.106
Dividend Share
4.7
Earnings Share
5.2
Revenue Per Share
33.613
Quarterly Revenue Growth
0.073
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.