Johnson & Johnson, FCFF calculation

US$ in millions

12 months ended:	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net earnings	14,066)	35,153)	17,941)	20,878)	14,714)
Net noncash charges	8,363)	(14,869)	7,264)	6,770)	6,132)
Changes in assets and liabilities, net of effects from acquisitions and divestitures	1,837)	2,507)	(4,011)	(4,238)	2,690)
Net cash flows from operating activities	24,266)	22,791)	21,194)	23,410)	23,536)
Cash paid during the year for interest, net of amount capitalized, net of tax¹	1,611)	1,563)	771)	863)	750)
Interest expense capitalized, net of tax²	67)	62)	40)	45)	56)
Additions to property, plant and equipment	(4,424)	(4,543)	(4,009)	(3,652)	(3,347)
Free cash flow to the firm (FCFF)	21,520)	19,873)	17,996)	20,666)	20,995)

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Johnson & Johnson suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Johnson & Johnson FCFF increased from 2022 to 2023 and from 2023 to 2024.

Johnson & Johnson, interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	15.70%	11.50%	17.40%	8.30%	10.80%
Interest Paid, Net of Tax
Cash paid during the year for interest, net of amount capitalized, before tax	1,911)	1,766)	933)	941)	841)
Less: Cash paid during the year for interest, net of amount capitalized, tax²	300)	203)	162)	78)	91)
Cash paid during the year for interest, net of amount capitalized, net of tax	1,611)	1,563)	771)	863)	750)
Interest Costs Capitalized, Net of Tax
Interest expense capitalized, before tax	79)	70)	49)	49)	63)
Less: Interest expense capitalized, tax³	12)	8)	9)	4)	7)
Interest expense capitalized, net of tax	67)	62)	40)	45)	56)

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² 2024 Calculation
Cash paid during the year for interest, net of amount capitalized, tax = Cash paid during the year for interest, net of amount capitalized × EITR
= 1,911 × 15.70% = 300

³ 2024 Calculation
Interest expense capitalized, tax = Interest expense capitalized × EITR
= 79 × 15.70% = 12

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Johnson & Johnson, current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	396,560)
Free cash flow to the firm (FCFF)	21,520)
Valuation Ratio
EV/FCFF	18.43
Benchmarks
EV/FCFF, Competitors¹
AbbVie Inc.	20.76
Amgen Inc.	15.63
Bristol-Myers Squibb Co.	10.20
Danaher Corp.	28.93
Eli Lilly & Co.	202.28
Gilead Sciences Inc.	18.99
Merck & Co. Inc.	26.68
Pfizer Inc.	30.93
Regeneron Pharmaceuticals Inc.	18.69
Thermo Fisher Scientific Inc.	26.13
Vertex Pharmaceuticals Inc.	33.48
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	27.78
EV/FCFF, Industry
Health Care	24.71

Based on: 10-K (reporting date: 2024-12-29).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Johnson & Johnson, historical EV/FCFF calculation, comparison to benchmarks

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	390,710)	383,498)	428,242)	439,101)	435,585)
Free cash flow to the firm (FCFF)²	21,520)	19,873)	17,996)	20,666)	20,995)
Valuation Ratio
EV/FCFF³	18.16	19.30	23.80	21.25	20.75
Benchmarks
EV/FCFF, Competitors⁴
AbbVie Inc.	20.05	14.89	12.15	13.18	13.95
Amgen Inc.	15.35	22.22	16.01	15.82	14.51
Bristol-Myers Squibb Co.	—	9.14	13.87	10.52	11.63
Danaher Corp.	28.93	36.34	25.74	28.25	30.66
Eli Lilly & Co.	200.93	655.33	59.14	38.37	39.01
Gilead Sciences Inc.	—	13.41	13.58	8.42	13.60
Merck & Co. Inc.	—	37.84	19.09	23.27	34.12
Pfizer Inc.	—	32.24	9.15	8.40	21.74
Regeneron Pharmaceuticals Inc.	19.30	23.99	17.96	9.81	25.74
Thermo Fisher Scientific Inc.	26.13	28.85	31.61	33.14	26.14
Vertex Pharmaceuticals Inc.	—	29.45	16.68	22.47	16.00
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	—	27.24	17.95	16.12	19.74
EV/FCFF, Industry
Health Care	—	24.06	17.76	17.08	18.03

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 390,710 ÷ 21,520 = 18.16

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Johnson & Johnson EV/FCFF ratio decreased from 2022 to 2023 and from 2023 to 2024.

Johnson & Johnson (NYSE:JNJ)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical