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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Johnson & Johnson's enterprise value is $275,620 Mil. Johnson & Johnson's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2015 was $17,221 Mil. Therefore, Johnson & Johnson's EV/EBITDA ratio for today is 16.00.

JNJ' s EV/EBITDA Range Over the Past 10 Years
Min: 8.5   Max: 18.7
Current: 15.36

8.5
18.7

During the past 13 years, the highest EV/EBITDA Ratio of Johnson & Johnson was 18.70. The lowest was 8.50. And the median was 13.30.

JNJ's EV/EBITDA is ranked higher than
57% of the 540 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 17.42 vs. JNJ: 15.36 )

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 $102.00. Johnson & Johnson's earnings per share for the trailing twelve months (TTM) ended in Sep. 2015 was $5.23. Therefore, Johnson & Johnson's P/E Ratio for today is 19.51.

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)
=275620.060/17221
=16.00

Johnson & Johnson's current Enterprise Value is $275,620 Mil.
Johnson & Johnson's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 0 (Dec. 2014 ) + 6241 (Mar. 2015 ) + 5806 (Jun. 2015 ) + 5174 (Sep. 2015 ) = $17,221 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)
=102.00/5.227
=19.51

Johnson & Johnson's share price for today is $102.00.
Johnson & Johnson's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2015 was 0.887 (Dec. 2014 ) + 1.53 (Mar. 2015 ) + 1.61 (Jun. 2015 ) + 1.2 (Sep. 2015 ) = $5.23.

* 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 14.3114.4910.4111.129.2411.2913.8315.3912.910.00

Johnson & Johnson Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev2ebitda 14.5915.3915.3615.3413.1112.9112.6912.8113.980.00
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