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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Johnson & Johnson's enterprise value is $277,708 Mil. Johnson & Johnson's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $25,144 Mil. Therefore, Johnson & Johnson's EV/EBITDA ratio for today is 11.04.

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 $105.55. Johnson & Johnson's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $6.04. Therefore, Johnson & Johnson's P/E Ratio for today is 17.49.

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)
=277708.099/25144
=11.04

Johnson & Johnson's current Enterprise Value is $277,708 Mil.
Johnson & Johnson's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 3986 (Dec. 2013 ) + 6573 (Mar. 2014 ) + 6706 (Jun. 2014 ) + 7879 (Sep. 2014 ) = $25,144 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)
=105.55/6.036
=17.49

Johnson & Johnson's share price for today is $105.55.
Johnson & Johnson's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.226 (Dec. 2013 ) + 1.64 (Mar. 2014 ) + 1.51 (Jun. 2014 ) + 1.66 (Sep. 2014 ) = $6.04.

* 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 12.1312.4410.5612.7811.4011.5412.3312.5312.7611.18
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