Johnson & Johnson

NYSE:JNJ Stock Report

Market Cap: US$347.8b

Johnson & Johnson Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($144.47) 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 Ratio23.6x
EarningsUS$14.77b
Market CapUS$347.83b

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 Average42.1x
MRK Merck
20.4x16.0%US$248.0b
LLY Eli Lilly
82.6x29.8%US$691.3b
PFE Pfizer
35x14.8%US$149.4b
ZTS Zoetis
30.6x10.0%US$74.4b
JNJ Johnson & Johnson
23.6x10.6%US$347.8b

Price-To-Earnings vs Peers: JNJ is good value based on its Price-To-Earnings Ratio (23.6x) compared to the peer average (42.1x).

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
OGN Organon
2.9x-8.3%US$3.75b
NDOI Endo
0.5xn/aUS$1.83b
KPRX Kiora Pharmaceuticals
1.8x-40.4%US$9.81m
EDXC Endexx
0.8xn/aUS$5.57m
JNJ 23.6xIndustry Avg. 16.7xNo. of Companies9PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JNJ is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the US Pharmaceuticals industry average (16.7x).

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 Ratio23.6x
Fair PE Ratio36.7x

Price-To-Earnings vs Fair Ratio: JNJ is good value based on its Price-To-Earnings Ratio (23.6x) compared to the estimated Fair Price-To-Earnings Ratio (36.7x).

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$144.47
US$174.28
+20.6%
7.2%US$215.00US$155.00n/a23
Dec ’25US$155.01
US$174.89
+12.8%
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$155.00US$155.0122
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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:05
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/29
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Johnson & Johnson is covered by 62 analysts. 22 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
Ishan MajumdarBaptista Research
Charles ButlerBarclays