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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Johnson & Johnson's enterprise value is $268,922 Mil. Johnson & Johnson's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $20,057 Mil. Therefore, Johnson & Johnson's EV/EBITDA ratio for today is 13.07.

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 $98.96. Johnson & Johnson's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $4.82. Therefore, Johnson & Johnson's P/E Ratio for today is 20.50.

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)
=268922.112/20057
=13.41

Johnson & Johnson's current Enterprise Value is $268,922 Mil.
Johnson & Johnson's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 5422 (Mar. 2013 ) + 5901 (Jun. 2013 ) + 4748 (Sep. 2013 ) + 3986 (Dec. 2013 ) = $20,057 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)
=98.96/4.816
=20.55

Johnson & Johnson's share price for today is $98.96.
Johnson & Johnson's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 1.22 (Mar. 2013 ) + 1.33 (Jun. 2013 ) + 1.04 (Sep. 2013 ) + 1.226 (Dec. 2013 ) = $4.82.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 12.1710.8311.5211.568.179.117.8210.3510.5612.33

Johnson & Johnson Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 9.0210.3510.0012.1312.4410.5612.7811.4011.5412.33
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