Johnson & Johnson

NYSE:JNJ Stock Report

Market Cap: US$373.6b

Johnson & Johnson Valuation

Is JNJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of JNJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JNJ ($155.78) is trading below our estimate of fair value ($267.08)

Significantly Below Fair Value: JNJ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JNJ?

Key metric: As JNJ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for JNJ. This is calculated by dividing JNJ's market cap by their current earnings.
What is JNJ's PE Ratio?
PE Ratio25.3x
EarningsUS$14.77b
Market CapUS$373.59b

Price to Earnings Ratio vs Peers

How does JNJ's PE Ratio compare to its peers?

The above table shows the PE ratio for JNJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.5x
MRK Merck
21.1x15.6%US$250.9b
LLY Eli Lilly
81.2x29.2%US$673.5b
PFE Pfizer
34.7x16.8%US$145.4b
ZTS Zoetis
33.2x9.9%US$79.8b
JNJ Johnson & Johnson
25.4x10.6%US$373.6b

Price-To-Earnings vs Peers: JNJ is good value based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (42.5x).

Price to Earnings Ratio vs Industry

How does JNJ's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NDOI Endo
0.5xn/aUS$1.87b
PROC Procaps Group
2.7xn/aUS$103.80m
KPRX Kiora Pharmaceuticals
1.8x-40.4%US$10.11m
EDXC Endexx
0.9xn/aUS$5.34m
JNJ 25.3xIndustry Avg. 20.5xNo. of Companies9PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JNJ is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the US Pharmaceuticals industry average (20.5x).

Price to Earnings Ratio vs Fair Ratio

What is JNJ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JNJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.3x
Fair PE Ratio37x

Price-To-Earnings vs Fair Ratio: JNJ is good value based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (37x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst JNJ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$155.78
US$174.89
+12.3%
7.3%US$215.00US$155.00n/a23
Nov ’25US$160.13
US$174.28
+8.8%
7.3%US$215.00US$155.00n/a22
Oct ’25US$161.99
US$171.32
+5.8%
8.0%US$215.00US$150.00n/a22
Sep ’25US$165.86
US$171.05
+3.1%
8.0%US$215.00US$150.00n/a22
Aug ’25US$160.76
US$170.67
+6.2%
8.0%US$215.00US$150.00n/a22
Jul ’25US$146.44
US$171.72
+17.3%
7.7%US$215.00US$155.00n/a22
Jun ’25US$146.67
US$171.94
+17.2%
7.8%US$215.00US$155.00n/a22
May ’25US$151.18
US$172.79
+14.3%
7.8%US$215.00US$155.00n/a21
Apr ’25US$157.78
US$175.41
+11.2%
7.1%US$215.00US$160.00n/a21
Mar ’25US$162.12
US$174.24
+7.5%
7.5%US$215.00US$157.00n/a21
Feb ’25US$158.36
US$174.55
+10.2%
7.4%US$215.00US$157.00n/a22
Jan ’25US$156.74
US$174.82
+11.5%
7.2%US$215.00US$157.00n/a22
Dec ’24US$158.38
US$174.55
+10.2%
7.4%US$215.00US$155.00n/a22
Nov ’24US$148.69
US$176.14
+18.5%
6.9%US$215.00US$157.00US$160.1322
Oct ’24US$155.75
US$179.81
+15.4%
6.5%US$215.00US$158.00US$161.9921
Sep ’24US$160.48
US$181.00
+12.8%
6.0%US$215.00US$164.00US$165.8621
Aug ’24US$168.89
US$182.35
+8.0%
6.1%US$215.00US$164.00US$160.7620
Jul ’24US$165.52
US$179.20
+8.3%
6.9%US$215.00US$161.00US$146.4420
Jun ’24US$154.54
US$179.20
+16.0%
6.9%US$215.00US$161.00US$146.6720
May ’24US$163.60
US$178.79
+9.3%
7.1%US$215.00US$161.00US$151.1819
Apr ’24US$155.00
US$177.90
+14.8%
7.2%US$215.00US$161.00US$157.7821
Mar ’24US$152.57
US$179.24
+17.5%
7.0%US$215.00US$161.00US$162.1221
Feb ’24US$164.92
US$180.90
+9.7%
6.5%US$215.00US$164.00US$158.3620
Jan ’24US$176.65
US$181.95
+3.0%
7.1%US$215.00US$160.00US$156.7422
Dec ’23US$178.74
US$182.25
+2.0%
7.1%US$215.00US$160.00US$158.3820
Nov ’23US$173.09
US$181.95
+5.1%
7.0%US$215.00US$160.00US$148.6921

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Spectrum Pharmaceuticals

US$209.9m

Spectrum Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes oncology drug products.

SPPI

US$1.03

7D

5.3%

1Y

17.0%

Collegium Pharmaceutical

US$966.2m

A specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management.

COLL

US$29.96

7D

2.5%

1Y

15.9%

ANI Pharmaceuticals

US$1.1b

A biopharmaceutical company, develops, manufactures, and markets branded and generic prescription pharmaceuticals in the United States and Canada.

ANIP

US$56.91

7D

3.0%

1Y

11.4%