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

As of today, Johnson & Johnson's current share price is $118.81. Johnson & Johnson's E10 for the quarter that ended in Jun. 2016 was $4.85. Johnson & Johnson's Shiller P/E Ratio for today is 24.50.

JNJ' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.57   Max: 29.83
Current: 24.49

15.57
29.83

During the past 13 years, Johnson & Johnson's highest Shiller P/E Ratio was 29.83. The lowest was 15.57. And the median was 20.94.

JNJ's Shiller P/E Ratio is ranked higher than
79% of the 159 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 49.59 vs. JNJ: 24.49 )

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 Jun. 2016 was $1.430. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.85 for the trailing ten years ended in Jun. 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
=118.81/4.85
=24.50

* 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 Dec15 is calculated as:

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

Adj_EPS=Earnigns per Share/CPI of Jun. 2016 (Change)*Current CPI (Jun. 2016)
=1.43/241.038*241.038
=1.430

Current CPI (Jun. 2016) = 241.038.

Johnson & Johnson Quarterly Data

201403201406201409201412201503201506201509201512201603201606
per share eps 1.6401.5101.6600.8901.5301.6101.2001.1501.5401.430
CPI 236.293238.343238.031234.812236.119238.638237.945236.525238.132241.038
Adj_EPS 1.6731.5271.6810.9141.5621.6261.2161.1721.5591.430
201109201112201203201206201209201212201303201306201309201312
per share eps 1.1500.0901.4100.5001.0500.9001.2201.3301.0401.230
CPI 226.889225.672229.392229.478231.407229.601232.773233.504234.149233.049
Adj_EPS 1.2220.0961.4820.5251.0940.9451.2631.3731.0711.272
200903200906200909200912201003201006201009201012201103201106
per share eps 1.2601.1501.2000.7901.6201.2301.2300.7001.2501.000
CPI 212.709215.693215.969215.949217.631217.965218.439219.179223.467225.722
Adj_EPS 1.4281.2851.3390.8821.7941.3601.3570.7701.3481.068
200609200612200703200706200709200712200803200806200809200812
per share eps 0.9400.7400.8801.0500.8800.8201.2601.1701.1700.970
CPI 202.900201.800205.352208.352208.490210.036213.528218.815218.783210.228
Adj_EPS 1.1170.8841.0331.2151.0170.9411.4221.2891.2891.112

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 28.0725.0420.1119.4217.0917.0917.4421.3522.9321.84

Johnson & Johnson Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ShillerPE 22.3623.3323.4222.9321.8720.7419.7921.8422.6725.00
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