Switch to:
Johnson & Johnson (NYSE:JNJ)
EV/EBITDA
13.17 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Johnson & Johnson's enterprise value is $293,464 Mil. Johnson & Johnson's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $22,276 Mil. Therefore, Johnson & Johnson's EV/EBITDA ratio for today is 13.17.

JNJ' s EV/EBITDA Range Over the Past 10 Years
Min: 6.7   Max: 14.1
Current: 13.17

6.7
14.1

During the past 13 years, the highest EV/EBITDA Ratio of Johnson & Johnson was 14.10. The lowest was 6.70. And the median was 10.90.

JNJ's EV/EBITDA is ranked higher than
64% of the 553 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 17.05 vs. JNJ: 13.17 )

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 $112.69. Johnson & Johnson's earnings per share for the trailing twelve months (TTM) ended in Mar. 2016 was $5.50. 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)
=293464.100/22276
=13.17

Johnson & Johnson's current Enterprise Value is $293,464 Mil.
Johnson & Johnson's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 5806 (Jun. 2015 ) + 5174 (Sep. 2015 ) + 4951 (Dec. 2015 ) + 6345 (Mar. 2016 ) = $22,276 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)
=112.69/5.498
=20.50

Johnson & Johnson's share price for today is $112.69.
Johnson & Johnson's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2016 was 1.61 (Jun. 2015 ) + 1.2 (Sep. 2015 ) + 1.148 (Dec. 2015 ) + 1.54 (Mar. 2016 ) = $5.50.

* 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 11.5011.568.179.117.8210.3510.5612.3310.9511.79

Johnson & Johnson Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebitda 12.3312.4912.6011.0610.9510.5810.5811.2411.7912.66
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK