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Johnson & Johnson (NYSE:JNJ)
EV-to-EBITDA
13.40 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Johnson & Johnson's enterprise value is $325,382 Mil. Johnson & Johnson's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $24,283 Mil. Therefore, Johnson & Johnson's EV/EBITDA ratio for today is 13.40.

JNJ' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.7   Max: 14.8
Current: 13.4

6.7
14.8

During the past 13 years, the highest EV/EBITDA Ratio of Johnson & Johnson was 14.80. The lowest was 6.70. And the median was 10.90.

JNJ's EV-to-EBITDA is ranked higher than
64% of the 573 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 16.30 vs. JNJ: 13.40 )

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 $125.48. Johnson & Johnson's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $5.88. Therefore, Johnson & Johnson's P/E Ratio for today is 21.34.

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)
=325381.727/24283
=13.40

Johnson & Johnson's current Enterprise Value is $325,382 Mil.
Johnson & Johnson's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 6345 (Mar. 2016 ) + 5994 (Jun. 2016 ) + 6381 (Sep. 2016 ) + 5563 (Dec. 2016 ) = $24,283 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=125.48/5.88
=21.34

Johnson & Johnson's share price for today is $125.48.
Johnson & Johnson's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.54 (Mar. 2016 ) + 1.43 (Jun. 2016 ) + 1.53 (Sep. 2016 ) + 1.38 (Dec. 2016 ) = $5.88.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Johnson & Johnson Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 11.568.179.117.8210.3510.5612.3310.9511.3112.31

Johnson & Johnson Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 11.0610.9510.5810.1810.7611.3112.1414.0613.0212.31
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