Switch to:
Johnson & Johnson (NYSE:JNJ)
Shiller P/E Ratio
22.76 (As of Today)

As of today, Johnson & Johnson's current share price is $111.96. Johnson & Johnson's E10 for the quarter that ended in Sep. 2016 was $4.92. Johnson & Johnson's Shiller P/E Ratio for today is 22.76.

JNJ' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.52   Max: 28.83
Current: 22.71

15.52
28.83

During the past 13 years, Johnson & Johnson's highest Shiller P/E Ratio was 28.83. The lowest was 15.52. And the median was 20.81.

JNJ's Shiller P/E Ratio is ranked higher than
76% of the 161 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 46.34 vs. JNJ: 22.71 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Johnson & Johnson's adjusted earnings per share data for the three months ended in Sep. 2016 was $1.530. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.92 for the trailing ten years ended in Sep. 2016.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Johnson & Johnson's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=111.96/4.92
=22.76

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Johnson & Johnson's E10 for the fiscal year that ended in Dec15 is calculated as:

For example, Johnson & Johnson's adjusted earnings per share data for the three months ended in Sep. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2016 (Change)*Current CPI (Sep. 2016)
=1.53/241.428*241.428
=1.530

Current CPI (Sep. 2016) = 241.428.

Johnson & Johnson Quarterly Data

201406201409201412201503201506201509201512201603201606201609
per share eps 1.5101.6600.8901.5301.6101.2001.1501.5401.4301.530
CPI 238.343238.031234.812236.119238.638237.945236.525238.132241.018241.428
Adj_EPS 1.5301.6840.9151.5641.6291.2181.1741.5611.4321.530
201112201203201206201209201212201303201306201309201312201403
per share eps 0.0901.4100.5001.0500.9001.2201.3301.0401.2301.640
CPI 225.672229.392229.478231.407229.601232.773233.504234.149233.049236.293
Adj_EPS 0.0961.4840.5261.0950.9461.2651.3751.0721.2741.676
200906200909200912201003201006201009201012201103201106201109
per share eps 1.1501.2000.7901.6201.2301.2300.7001.2501.0001.150
CPI 215.693215.969215.949217.631217.965218.439219.179223.467225.722226.889
Adj_EPS 1.2871.3410.8831.7971.3621.3590.7711.3501.0701.224
200612200703200706200709200712200803200806200809200812200903
per share eps 0.7400.8801.0500.8800.8201.2601.1701.1700.9701.260
CPI 201.800205.352208.352208.490210.036213.528218.815218.783210.228212.709
Adj_EPS 0.8851.0351.2171.0190.9431.4251.2911.2911.1141.430

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Johnson & Johnson Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 28.1225.0920.1519.4516.9716.9717.3221.4123.0021.71

Johnson & Johnson Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ShillerPE 23.1823.4923.0021.7320.6119.8521.7122.7524.8524.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK