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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Johnson & Johnson's enterprise value is $281,646 Mil. Johnson & Johnson's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $20,959 Mil. Therefore, Johnson & Johnson's EV/EBITDA ratio for today is 13.44.

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 $100.14. Johnson & Johnson's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $5.70. Therefore, Johnson & Johnson's P/E Ratio for today is 17.57.

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)
=281646.400/20959
=13.44

Johnson & Johnson's current Enterprise Value is $281,646 Mil.
Johnson & Johnson's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 5628 (Mar. 2014 ) + 5966 (Jun. 2014 ) + 5577 (Sep. 2014 ) + 3788 (Dec. 2014 ) = $20,959 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)
=100.14/5.7
=17.57

Johnson & Johnson's share price for today is $100.14.
Johnson & Johnson's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 1.64 (Mar. 2014 ) + 1.51 (Jun. 2014 ) + 1.66 (Sep. 2014 ) + 0.89 (Dec. 2014 ) = $5.70.

* 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 10.8311.5211.568.179.117.8210.3510.5612.3314.07

Johnson & Johnson Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 12.4410.5612.7811.4011.5412.3313.1113.8113.2914.07
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