Johnson & Johnson Valuation

Is JNJ0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 JNJ0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JNJ0 (€14) is trading below our estimate of fair value (€25.25)

Significantly Below Fair Value: JNJ0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JNJ0?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for JNJ0. This is calculated by dividing JNJ0's market cap by their current preferred multiple.
What is JNJ0's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$385.86b

JNJ0 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.6x
Enterprise Value/EBITDA	12.9x
PEG Ratio	3.2x

Price to Earnings Ratio vs Peers

How does JNJ0's PE Ratio compare to its peers?

The above table shows the PE ratio for JNJ0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	22.3x
MRK Merck KGaA	25.3x	11.5%	€66.5b
DMP Dermapharm Holding	21.5x	20.0%	€1.8b
ROG Roche Holding	19.5x	10.8%	CHF 209.5b
NOVN Novartis	23x	9.3%	CHF 197.9b
JNJ0 Johnson & Johnson	23.4x	7.2%	€385.9b

Price-To-Earnings vs Peers: JNJ0 is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the peer average (22.3x).

Price to Earnings Ratio vs Industry

How does JNJ0's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	19.4%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	19.4%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: JNJ0 is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the European Pharmaceuticals industry average (22.5x).

Price to Earnings Ratio vs Fair Ratio

What is JNJ0'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.

JNJ0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.4x
Fair PE Ratio	28.5x

Price-To-Earnings vs Fair Ratio: JNJ0 is good value based on its Price-To-Earnings Ratio (23.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.5x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.