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

As of today, Johnson & Johnson's current share price is $112.08. Johnson & Johnson's E10 for the quarter that ended in Dec. 2015 was $4.74. Johnson & Johnson's Shiller P/E Ratio for today is 23.65.

JNJ' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 15.48   Max: 29.83
Current: 23.67

15.48
29.83

During the past 13 years, Johnson & Johnson's highest Shiller P/E Ratio was 29.83. The lowest was 15.48. And the median was 20.75.

JNJ's Shiller P/E Ratio is ranked higher than
78% of the 145 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 45.10 vs. JNJ: 23.67 )

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 Dec. 2015 was $1.148. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $4.74 for the trailing ten years ended in Dec. 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
=112.08/4.74
=23.65

* 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 Dec. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2015 (Change)*Current CPI (Dec. 2015)
=1.148/236.525*236.525
=1.148

Current CPI (Dec. 2015) = 236.525.

Johnson & Johnson Quarterly Data

201312201403201406201409201412201503201506201509201512201603
per share eps 1.2261.6401.5101.6600.8871.5301.6101.2001.1481.540
CPI 233.049236.293238.343238.031234.812236.119238.638237.945236.525237.208
Adj_EPS 1.2441.6421.4981.6490.8931.5331.5961.1931.1481.536
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 1.0481.1990.0831.4540.5151.0730.9321.2401.3471.051
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 1.0911.4011.2611.3140.8651.7611.3351.3320.7541.323
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 1.1071.0960.8651.0141.1920.9980.9271.3961.2651.265

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 28.0224.9820.1219.4516.9616.9617.3021.3922.9821.69

Johnson & Johnson Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ShillerPE 21.3922.1923.3823.4622.9821.7220.5919.8421.690.00
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