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Johnson & Johnson (NYSE:JNJ)
EV/EBIT
12.58 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Johnson & Johnson's enterprise value is $260,082 Mil. Johnson & Johnson's operating income for the trailing twelve months (TTM) ended in Mar. 2015 was $20,677 Mil. Therefore, Johnson & Johnson's EV/EBIT ratio for today is 12.58.

JNJ' s 10-Year EV/EBIT Range
Min: 8.4   Max: 15.7
Current: 12.64

8.4
15.7

During the past 13 years, the highest EV/EBIT Ratio of Johnson & Johnson was 15.70. The lowest was 8.40. And the median was 13.10.

JNJ's EV/EBITis ranked higher than
93% of the 1281 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 46.13 vs. JNJ: 12.64 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Johnson & Johnson's enterprise value for the quarter that ended in Mar. 2015 was $267,381 Mil. Johnson & Johnson's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was $20,677 Mil. Johnson & Johnson's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 7.73%.


Definition

Johnson & Johnson's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=260082.187/20677
=12.58

Johnson & Johnson's current Enterprise Value is $260,082 Mil.
Johnson & Johnson's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 5966 (Jun. 2014 ) + 5577 (Sep. 2014 ) + 3788 (Dec. 2014 ) + 5346 (Mar. 2015 ) = $20,677 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Johnson & Johnson's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2015 )
=20677/267381.294
=7.73 %

Johnson & Johnson's Enterprise Value for the quarter that ended in Mar. 2015 was $267,381 Mil.
Johnson & Johnson's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 5966 (Jun. 2014 ) + 5577 (Sep. 2014 ) + 3788 (Dec. 2014 ) + 5346 (Mar. 2015 ) = $20,677 Mil.

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


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 13.2614.7513.8510.2910.379.6210.3111.9613.4613.28

Johnson & Johnson Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 11.9613.7613.5512.9113.4613.8914.0213.4513.280.00
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