Switch to:
GuruFocus has detected 5 Warning Signs with Johnson & Johnson $JNJ.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Johnson & Johnson (NYSE:JNJ)
Shiller PE Ratio
24.98 (As of Today)

As of today, Johnson & Johnson's current share price is $126.92. Johnson & Johnson's E10 for the quarter that ended in Mar. 2017 was $5.08. Johnson & Johnson's Shiller P/E Ratio for today is 24.98.

JNJ' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.52   Max: 29.58
Current: 24.99

15.52
29.58

During the past 13 years, Johnson & Johnson's highest Shiller P/E Ratio was 29.58. The lowest was 15.52. And the median was 21.34.

JNJ's Shiller PE Ratio is ranked higher than
76% of the 161 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 43.67 vs. JNJ: 24.99 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Johnson & Johnson's adjusted earnings per share data for the three months ended in Mar. 2017 was $1.610. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $5.08 for the trailing ten years ended in Mar. 2017.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Johnson & Johnson's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=126.92/5.08
=24.98

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Johnson & Johnson's E10 for the fiscal year that ended in Dec16 is calculated as:

For example, Johnson & Johnson's adjusted earnings per share data for the three months ended in Mar. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Mar. 2017 (Change)*Current CPI (Mar. 2017)
=1.61/243.985*243.985
=1.610

Current CPI (Mar. 2017) = 243.985.

Johnson & Johnson Quarterly Data

201412201503201506201509201512201603201606201609201612201703
per share eps 0.8901.5301.6101.2001.1501.5901.4301.5301.3801.610
CPI 234.812236.119238.638237.945236.525238.132241.018241.428241.432243.985
Adj_EPS 0.9251.5811.6461.2301.1861.6291.4481.5461.3951.610
201206201209201212201303201306201309201312201403201406201409
per share eps 0.5001.0500.9001.2201.3301.0401.2301.6401.5101.660
CPI 229.478231.407229.601232.773233.504234.149233.049236.293238.343238.031
Adj_EPS 0.5321.1070.9561.2791.3901.0841.2881.6931.5461.702
200912201003201006201009201012201103201106201109201112201203
per share eps 0.7901.6201.2301.2300.7001.2501.0001.1500.0901.410
CPI 215.949217.631217.965218.439219.179223.467225.722226.889225.672229.392
Adj_EPS 0.8931.8161.3771.3740.7791.3651.0811.2370.0971.500
200706200709200712200803200806200809200812200903200906200909
per share eps 1.0500.8800.8201.2601.1701.1700.9701.2601.1501.200
CPI 208.352208.490210.036213.528218.815218.783210.228212.709215.693215.969
Adj_EPS 1.2301.0300.9531.4401.3051.3051.1261.4451.3011.356

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Johnson & Johnson Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ShillerPE 25.0520.1319.4416.9616.9717.3221.4123.0121.7222.94

Johnson & Johnson Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ShillerPE 23.0121.7520.6219.8721.7222.7424.8423.9922.9424.53
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK