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Johnson & Johnson (NYSE:JNJ)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
3.81 (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 22.46. Johnson & Johnson's 5-year average EBITDA growth rate is 5.90%. Therefore, Johnson & Johnson's PEG for today is 3.81.

JNJ' s PEG Range Over the Past 10 Years
Min: 1.17   Max: 25.96
Current: 3.8

1.17
25.96

During the past 13 years, Johnson & Johnson's highest PEG was 25.96. The lowest was 1.17. And the median was 1.71.

JNJ's PEG is ranked lower than
69% of the 289 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.98 vs. JNJ: 3.80 )

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)
=22.4567669173/5.90
=3.81

* 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 1.361.891.541.701.524.710.000.007.032.36

Johnson & Johnson Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
peg 0.000.0018.207.034.583.042.682.362.182.45
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