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Johnson & Johnson (NYSE:JNJ)
EV/EBITDA
10.43 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Johnson & Johnson's enterprise value is $257,266 Mil. Johnson & Johnson's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $24,659 Mil. Therefore, Johnson & Johnson's EV/EBITDA ratio for today is 10.43.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Johnson & Johnson's stock price is $98.20. Johnson & Johnson's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $5.59. Therefore, Johnson & Johnson's P/E Ratio for today is 17.58.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=257266.090/24659
=10.43

Johnson & Johnson's current Enterprise Value is $257,266 Mil.
Johnson & Johnson's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 6706 (Jun. 2014 ) + 7879 (Sep. 2014 ) + 3833 (Dec. 2014 ) + 6241 (Mar. 2015 ) = $24,659 Mil.

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


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Johnson & Johnson's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=98.20/5.587
=17.58

Johnson & Johnson's share price for today is $98.20.
Johnson & Johnson's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 1.51 (Jun. 2014 ) + 1.66 (Sep. 2014 ) + 0.887 (Dec. 2014 ) + 1.53 (Mar. 2015 ) = $5.59.

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

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


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
ev2ebitda 10.8311.5211.568.179.117.8210.3510.5612.3311.11

Johnson & Johnson Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 10.5612.7811.4011.5412.3312.4912.7211.1511.1110.84
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