Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
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Current Valuation Ratios
Johnson & Johnson, current price multiples
| Johnson & Johnson | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | |||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||
| Growth rate (g) | |||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||
| Next year expected EPS | |||||||||||||||||
| Operating profit per share | |||||||||||||||||
| Sales per share | |||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||
| Price-earnings-growth (PEG) | |||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2024-12-29).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Johnson & Johnson, historical price multiples
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The P/E ratio experienced a significant decline from 28.92 in 2020 to 10.73 in 2023, indicating a considerable reduction in market valuation relative to earnings during this period. However, by the end of 2024, the ratio rebounded to 26.92, approaching the initial level observed in 2020. This fluctuation suggests varying investor sentiment or changes in earnings performance over the five-year span.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio showed a decreasing trend from 21.84 in 2020 to 17.62 in 2022, indicating a reduction in price relative to operating profit. From 2022 onward, the ratio stabilized within a narrow range, slightly increasing to 18.2 by the end of 2024. This stability suggests relatively consistent market valuation in relation to operating profits in the later years.
- Price to Sales (P/S) Ratio
- The P/S ratio declined steadily from 5.15 in 2020 to 4.26 in 2024. This gradual decrease reflects a consistent trend of diminishing price multiples relative to sales, implying that the market valuation per unit of sales has contracted progressively over the years.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio followed a downward trajectory from 6.72 in 2020 to 5.3 in 2024 with minor fluctuations. This pattern denotes a moderate decrease in market price compared to the accounted net asset value, suggesting a slight reduction in investor valuation relative to book equity over the period.
Price to Earnings (P/E)
Johnson & Johnson, historical P/E calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net earnings (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson & Johnson Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated minor fluctuations over the five-year period. It increased slightly from $161.87 in 2020 to a peak of $166.19 in 2021, followed by a gradual decline to $156.55 by the end of 2023. The price showed a modest recovery to $157.25 in 2024, indicating a relatively stable market valuation with no significant long-term upward or downward trend.
- Earnings Per Share (EPS)
- The earnings per share showed notable variability during the period. EPS increased substantially from $5.60 in 2020 to $7.94 in 2021, then decreased to $6.89 in 2022. A marked surge occurred in 2023, where EPS more than doubled to $14.59, followed by a sharp decline to $5.84 in 2024. This irregular pattern suggests volatility in profitability or earnings performance, with 2023 being an exceptional outlier year.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio experienced significant fluctuations corresponding with changes in EPS and share price. Beginning at 28.92 in 2020, it decreased consistently to a low of 10.73 in 2023, reflecting the high earnings relative to share price that year. In 2024, the ratio rebounded to 26.92, aligning more closely with earlier values. These changes indicate varying market perceptions of earnings growth and valuation during the period.
Price to Operating Profit (P/OP)
Johnson & Johnson, historical P/OP calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating earnings (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating earnings ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson & Johnson Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals several noteworthy trends over the five-year period from 2020 to 2024.
- Share Price
- The share price exhibits a generally stable pattern with slight fluctuations. After rising from 161.87 USD in 2020 to a peak of 166.19 USD in 2021, it declined steadily to 156.55 USD by 2023 before marginally increasing to 157.25 USD in 2024. This pattern suggests a mild depreciation in market valuation after 2021, with partial recovery towards the end of the period.
- Operating Profit Per Share
- Operating profit per share increased notably from 7.41 USD in 2020 to 8.9 USD in 2021, showing strong operational improvement. It then stabilized somewhat, reaching 8.98 USD in 2022, followed by a slight decrease to 8.8 USD in 2023 and further to 8.64 USD in 2024. While the initial growth indicates enhanced profitability, the small decline in later years suggests potential challenges in sustaining this momentum.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio displays a declining trend from 21.84 in 2020 to 17.62 in 2022, indicating the stock became more attractively priced relative to its operating profit during these years. A minor increase to 17.78 in 2023 and further to 18.2 in 2024 reflects a slight compression of valuation multiples. This trajectory suggests that the market's willingness to pay for operating profits diminished somewhat following the early period, aligning with the modest decrease in share price and stabilization in operating profit.
Price to Sales (P/S)
Johnson & Johnson, historical P/S calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Sales to customers (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Sales to customers ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson & Johnson Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited minor fluctuations over the observed periods. Starting at $161.87 in 2020, it experienced a modest increase to $166.19 in 2021, followed by a gradual decline reaching $156.55 in 2023. In 2024, the price showed a slight recovery, rising to $157.25. Overall, the share price remained relatively stable with a slight downward trend from its peak in 2021.
- Sales Per Share
- Sales per share demonstrated a consistent upward trajectory, increasing from $31.42 in 2020 to $36.89 in 2024. There was a notable jump between 2020 and 2021, followed by a steady increase with a minor dip in 2023 to $35.35 before regaining growth in 2024. This indicates steady improvement in revenue generation on a per-share basis over the five-year span.
- Price-to-Sales Ratio (P/S)
- The P/S ratio showed a clear downward trend from 5.15 in 2020 to 4.26 in 2024. This decline suggests that the market valuation relative to sales has decreased over time, potentially reflecting an adjustment in market expectations or valuation multiples despite increasing sales per share. The ratio dipped most sharply between 2020 and 2022, then stabilized at a lower level through 2024.
Price to Book Value (P/BV)
Johnson & Johnson, historical P/BV calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson & Johnson Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a fluctuating trend over the five-year period. It initially increased from $161.87 in 2020 to $166.19 in 2021. Subsequently, it declined over the next two years, reaching $156.55 in 2023. A slight recovery was observed in 2024, with the share price rising to $157.25. Overall, the share price showed a moderate downward movement after the 2021 peak.
- Book Value per Share (BVPS)
- The book value per share demonstrated a generally positive trend across the examined period. Starting at $24.07 in 2020, it increased steadily to $28.15 in 2021 and $29.49 in 2022, indicating growth in the company's net asset value per share. There was a minor dip in 2023 to $28.55, followed by a rebound to $29.69 in 2024, maintaining a consistent upward trajectory over the longer term.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio showed a declining trend from 6.72 in 2020 to 5.3 in 2024. This decline suggests that the market valuation relative to the company's book value per share has contracted over time. While the share price experienced some fluctuations, the more consistent increase in BVPS contributed to the steady reduction in the P/BV ratio, indicating a potential adjustment in market perceptions or valuation multiple.