Johnson & Johnson

BIT:1JNJ Stock Report

Market Cap: €495.8b

Johnson & Johnson Valuation

Is 1JNJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of 1JNJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 1JNJ (€207.35) is trading below our estimate of future cash flow value (€331.94)

Significantly Below Future Cash Flow Value: 1JNJ is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1JNJ?

Key metric: As 1JNJ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1JNJ. This is calculated by dividing 1JNJ's market cap by their current earnings.
What is 1JNJ's PE Ratio?
PE Ratio21.8x
EarningsUS$26.80b
Market CapUS$584.38b

Price to Earnings Ratio vs Peers

How does 1JNJ's PE Ratio compare to its peers?

The above table shows the PE ratio for 1JNJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.8x
REC Recordati Industria Chimica e Farmaceutica
24.1x14.49%€9.7b
ROG Roche Holding
22.9x10.50%CHF 295.5b
MRK Merck
16.8x8.32%US$303.5b
AZN AstraZeneca
31.4x11.54%UK£238.0b
1JNJ Johnson & Johnson
21.8x2.60%€584.4b

Price-To-Earnings vs Peers: 1JNJ is good value based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (23.8x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does 1JNJ's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1JNJ 21.8xIndustry Avg. 24.2xNo. of Companies7PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1JNJ is good value based on its Price-To-Earnings Ratio (21.8x) compared to the European Pharmaceuticals industry average (24.2x).

Price to Earnings Ratio vs Fair Ratio

What is 1JNJ'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.

1JNJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.8x
Fair PE Ratio46.5x

Price-To-Earnings vs Fair Ratio: 1JNJ is good value based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (46.5x).

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 1JNJ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€207.35
€197.56
-4.72%
11.00%€225.17€131.70n/a24
Feb ’27€190.40
€194.46
+2.13%
11.68%€223.45€130.70n/a24
Jan ’27€176.08
€178.90
+1.60%
10.46%€204.34€131.97n/a24
Dec ’26€177.74
€174.47
-1.84%
8.28%€198.12€133.52n/a24
Nov ’26€163.52
€171.34
+4.78%
8.44%€193.19€133.08n/a23
Oct ’26€157.40
€153.83
-2.27%
7.91%€178.88€132.03n/a23
Sep ’26€152.24
€152.10
-0.089%
6.12%€172.26€133.50n/a23
Aug ’26€144.14
€153.20
+6.28%
5.37%€166.40€135.75n/a23
Jul ’26€133.36
€143.50
+7.60%
6.47%€156.92€127.23n/a23
Jun ’26€136.20
€148.93
+9.35%
6.47%€162.86€132.05n/a23
May ’26€137.66
€150.58
+9.39%
6.04%€163.85€132.86n/a23
Apr ’26€145.94
€156.71
+7.38%
6.58%€176.11€139.04n/a21
Mar ’26€156.94
€162.46
+3.52%
6.72%€183.20€144.63n/a21
Feb ’26€146.40
€161.48
+10.30%
6.83%€182.13€143.79€190.4021
Jan ’26€138.98
€166.51
+19.81%
7.23%€205.41€148.09€176.0823
Dec ’25€147.30
€165.13
+12.10%
7.26%€203.00€146.35€177.7423
Nov ’25€148.18
€161.15
+8.76%
7.32%€198.81€143.33€163.5222
Oct ’25€146.52
€154.65
+5.55%
8.03%€194.08€135.41€157.4022
Sep ’25€148.20
€154.77
+4.43%
7.98%€194.53€135.72€152.2422
Aug ’25€146.84
€157.29
+7.12%
7.97%€198.14€138.24€144.1422
Jul ’25€136.60
€157.91
+15.60%
7.72%€197.71€142.54€133.3622
Jun ’25€135.28
€158.77
+17.37%
7.81%€198.53€143.13€136.2022
May ’25€136.12
€161.61
+18.73%
7.84%€201.09€144.97€137.6621
Apr ’25€146.30
€161.95
+10.70%
7.06%€198.51€147.73€145.9421
Mar ’25€150.00
€161.03
+7.35%
7.50%€198.70€145.10€156.9421
Feb ’25€145.50
€160.58
+10.37%
7.35%€197.80€144.44€146.4022
€198.81
Fair Value
4.3% overvalued intrinsic discount
24
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/23 20:55
End of Day Share Price 2026/02/23 00:00
Earnings2025/12/28
Annual Earnings2025/12/28

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Johnson & Johnson is covered by 49 analysts. 23 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Matthew MiksicBarclays
Lee HambrightBernstein