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

As of today, Johnson & Johnson's current share price is $113.06. Johnson & Johnson's E10 for the quarter that ended in Mar. 2016 was $4.79. Johnson & Johnson's Shiller P/E Ratio for today is 23.60.

JNJ' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.47   Max: 29.83
Current: 23.6

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 20.84.

JNJ's Shiller P/E Ratio is ranked higher than
77% of the 145 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 46.87 vs. JNJ: 23.60 )

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 Mar. 2016 was $1.540. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.79 for the trailing ten years ended in Mar. 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
=113.06/4.79
=23.60

* 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 Mar. 2016 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2016 (Change)*Current CPI (Mar. 2016)
=1.54/238.132*238.132
=1.540

Current CPI (Mar. 2016) = 238.132.

Johnson & Johnson Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 1.2261.6401.5101.6600.8871.5301.6101.2001.1481.540
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525238.132
Adj_EPS 1.2531.6531.5091.6610.9001.5431.6071.2011.1561.540
201106201109201112201203201206201209201212201303201306201309
per share eps 1.0001.1500.0791.4100.5001.0500.9051.2201.3301.040
CPI 225.722226.889225.672229.392229.478231.407229.601232.773233.504234.149
Adj_EPS 1.0551.2070.0831.4640.5191.0810.9391.2481.3561.058
200812200903200906200909200912201003201006201009201012201103
per share eps 0.9701.2601.1501.2000.7901.6201.2301.2300.6991.250
CPI 210.228212.709215.693215.969215.949217.631217.965218.439219.179223.467
Adj_EPS 1.0991.4111.2701.3230.8711.7731.3441.3410.7591.332
200606200609200612200703200706200709200712200803200806200809
per share eps 0.9500.9400.7380.8801.0500.8800.8231.2601.1701.170
CPI 202.900202.900201.800205.352208.352208.490210.036213.528218.815218.783
Adj_EPS 1.1151.1030.8711.0201.2001.0050.9331.4051.2731.273

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 27.8325.0320.1519.4817.0017.0017.3521.4523.0621.76

Johnson & Johnson Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 21.4522.2623.2223.3123.0621.7920.6519.7121.7622.59
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