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Johnson & Johnson (NYSE:JNJ)
Shiller P/E Ratio
21.61 (As of Today)

As of today, Johnson & Johnson's current share price is $102.00. Johnson & Johnson's E10 for the quarter that ended in Sep. 2015 was $4.72. Johnson & Johnson's Shiller P/E Ratio for today is 21.61.

JNJ' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.47   Max: 29.83
Current: 21.59

15.47
29.83

During the past 13 years, Johnson & Johnson's highest Shiller P/E Ratio was 29.83. The lowest was 15.47. And the median was 20.81.

JNJ's Shiller P/E Ratio is ranked higher than
76% of the 169 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 42.01 vs. JNJ: 21.59 )

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. 2015 was $1.200. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.72 for the trailing ten years ended in Sep. 2015.


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
=102.00/4.72
=21.61

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Johnson & Johnson's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Johnson & Johnson's adjusted earnings per share data for the three months ended in Sep. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Sep. 2015 (Change)*Current CPI (Sep. 2015)
=1.2/237.945*237.945
=1.200

Current CPI (Sep. 2015) = 237.945.

Johnson & Johnson Quarterly Data

201309201312201403201406201409201412201503201506201509201512
per share eps 1.0401.2261.6401.5101.6600.8871.5301.6101.2000.000
CPI 234.149233.049236.293238.343238.031234.812236.119238.638237.945236.525
Adj_EPS 1.0571.2521.6511.5071.6590.8991.5421.6051.2000.000
201103201106201109201112201203201206201209201212201303201306
per share eps 1.2501.0001.1500.0791.4100.5001.0500.9051.2201.330
CPI 223.467225.722226.889225.672229.392229.478231.407229.601232.773233.504
Adj_EPS 1.3311.0541.2060.0831.4630.5181.0800.9381.2471.355
200809200812200903200906200909200912201003201006201009201012
per share eps 1.1700.9701.2601.1501.2000.7901.6201.2301.2300.699
CPI 218.783210.228212.709215.693215.969215.949217.631217.965218.439219.179
Adj_EPS 1.2721.0981.4091.2691.3220.8701.7711.3431.3400.759
200603200606200609200612200703200706200709200712200803200806
per share eps 1.1000.9500.9400.7380.8801.0500.8800.8231.2601.170
CPI 199.800202.900202.900201.800205.352208.352208.490210.036213.528218.815
Adj_EPS 1.3101.1141.1020.8701.0201.1991.0040.9321.4041.272

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 own currency.

Johnson & Johnson Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ShillerPE 27.9824.9420.0819.4117.0917.0817.4221.3222.910.00

Johnson & Johnson Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ShillerPE 20.4521.3222.3423.3023.3822.9121.8620.7119.770.00
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