Johnson & Johnson (JNJ) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+7.8%

$290.04

vs $269.10 price

Levered DCF

$254.65

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.49

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	18.82×	24.54×	11.29×	25.86×	21.63×	28×	25.41×	22.44×
P/B	6.18×	4.83×	5.77×	6.01×	6.09×	6.51×	6.46×	5.75×
P/S	5.35×	3.88×	4.66×	5.77×	5.73×	4.99×	4.68×	4.21×
EV / EBITDA	12.97×	14.43×	17.35×	18.36×	17.58×	18.11×	16×	13.73×
Gross margin	67.9%	69.1%	68.8%	69.3%	70.3%	65.6%	66.4%	66.8%
Operating margin	27.2%	24.9%	27.5%	26.3%	26.6%	23.9%	25.6%	26.0%
Net margin	28.5%	15.8%	41.3%	22.4%	26.5%	17.8%	18.4%	18.8%
Current ratio	1.03×	1.11×	1.16×	0.99×	1.35×	1.21×	1.26×	1.47×
Debt / equity	0.59×	0.51×	0.43×	0.52×	0.46×	0.56×	0.47×	0.51×
Interest coverage	26.36×	29.34×	30.32×	76.13×	114.44×	98.17×	65.94×	21.07×
Dividend yield	2.5%	3.4%	3.0%	2.5%	2.4%	2.5%	2.6%	2.8%
Payout ratio	46.2%	84.1%	33.5%	65.1%	52.8%	71.2%	65.6%	62.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	32.9%	19.7%	51.1%	23.4%	28.2%	23.3%	25.4%	25.6%
Return on invested capital	13.7%	13.8%	16.6%	12.3%	13.8%	13.0%	14.9%	14.5%
Return on assets	13.5%	7.8%	21.0%	9.6%	11.5%	8.4%	9.6%	10.0%
Free cash flow yield	3.9%	5.8%	4.6%	3.7%	4.4%	4.9%	5.2%	5.4%
Earnings yield	5.3%	4.1%	8.9%	3.9%	4.6%	3.6%	3.9%	4.5%
Enterprise value	$532.3B	$357.6B	$404.6B	$488.4B	$470.2B	$433.3B	$394.4B	$355.9B
Net debt / EBITDA	0.69×	0.51×	0.32×	1.01×	0.72×	0.89×	0.42×	0.48×
Cash conversion cycle (days)	93	106	85	83	78	58	71	77