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Johnson & Johnson (NYSE:JNJ)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
5.04 (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 17.64. Johnson & Johnson's 5-year average EBITDA growth rate is 3.50%. Therefore, Johnson & Johnson's PEG for today is 5.04.

JNJ' s 10-Year PEG Range
Min: 1.18   Max: 246
Current: 5.14

1.18
246

During the past 13 years, Johnson & Johnson's highest PEG was 246.00. The lowest was 1.18. And the median was 1.55.

JNJ's PEGis ranked higher than
86% of the 964 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 0.00 vs. JNJ: 5.14 )

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)
=17.6385964912/3.50
=5.04

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
peg 1.281.381.911.561.661.535.050.000.006.55

Johnson & Johnson Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
peg 0.000.000.000.000.000.000.000.0013.796.55
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