Johnson & Johnson (JNJ) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: innovative medicine and medtech. These now represent all of the company's sales following the divest...
Johnson & Johnson (JNJ) currently trades at a P/E ratio of 29.28 (historical range: 9.12–35.16, median: 24.22), placing it at the 82th percentile — expensive relative to its history, P/S ratio of 6.29 (range: 3.94–6.85, 93th percentile — expensive relative to its history), EV/EBITDA of 19.29 (range: 12.03–31.77, 33th percentile).
Johnson & Johnson trades above its historical valuation range, with most metrics above their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 29.28 | 24.22 | 82th | expensive relative to its history |
| P/S Ratio | 6.29 | 4.70 | 93th | expensive relative to its history |
| EV/EBITDA | 19.29 | 20.88 | 33th | below its historical average |
| FCF Yield | 3.61% | 4.21% | 18th | expensive relative to its history |
Johnson & Johnson (JNJ) Valuation & P/E History
Johnson & Johnson (JNJ) is a US-listed stock operating in the Healthcare sector, specifically the Drug Manufacturers - General industry currently trading at $255.00 with a market capitalization of $614.5 billion. This page provides historical valuation analysis for JNJ based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 29.28 is above the historical median of 24.22, placing JNJ at the 82th percentile of its valuation range. The P/S ratio of 6.29 compares to a median of 4.70.
JNJ Valuation Metrics & Historical Range
The valuation table above shows Johnson & Johnson's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether JNJ is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests JNJ is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Johnson & Johnson.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is JNJ Overvalued or Undervalued?
Johnson & Johnson trades above its historical valuation range, with most metrics above their median levels. The overall valuation percentile of 69 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive JNJ is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full JNJ analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.JNJ trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.