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Johnson & Johnson (NYSE:JNJ)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
3.47 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Johnson & Johnson's P/E (NRI) Ratio is 20.45. Johnson & Johnson's 5-year average EBITDA growth rate is 5.90%. Therefore, Johnson & Johnson's PEG for today is 3.47.

JNJ' s PEG Range Over the Past 10 Years
Min: 1.19   Max: 26.05
Current: 3.49

1.19
26.05

During the past 13 years, Johnson & Johnson's highest PEG was 26.05. The lowest was 1.19. And the median was 1.69.

JNJ's PEG is ranked lower than
68% of the 285 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.83 vs. JNJ: 3.49 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Johnson & Johnson's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=20.4472727273/5.90
=3.47

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


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
peg 1.361.921.581.701.524.720.000.007.032.56

Johnson & Johnson Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
peg 0.000.000.0018.207.034.583.162.872.562.39
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