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Johnson & Johnson E10

: $5.47 (As of Sep. 2021)
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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 Sep. 2021 was $1.370. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $5.47 for the trailing ten years ended in Sep. 2021.

As of today (2022-01-24), Johnson & Johnson's current stock price is $162.97. Johnson & Johnson's E10 for the quarter that ended in Sep. 2021 was $5.47. Johnson & Johnson's Shiller PE Ratio of today is 29.79.

During the past 13 years, the highest Shiller PE Ratio of Johnson & Johnson was 33.32. The lowest was 15.54. And the median was 23.68.


Johnson & Johnson E10 Historical Data

The historical data trend for Johnson & Johnson's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Johnson & Johnson Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.97 4.69 4.80 4.95 5.00

Johnson & Johnson Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.02 5.00 5.17 5.42 5.47

Competitive Comparison

For the Drug Manufacturers - General subindustry, Johnson & Johnson's E10, along with its competitors' market caps and E10 data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Johnson & Johnson E10 Distribution

For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's E10 distribution charts can be found below:

* The bar in red indicates where Johnson & Johnson's E10 falls into.



Johnson & Johnson E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Johnson & Johnson's adjusted earnings per share data for the three months ended in Sep. 2021 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2021 (Change)*Current CPI (Sep. 2021)
=1.37/115.7343*115.7343
=1.370

Current CPI (Sep. 2021) = 115.7343.

Johnson & Johnson Quarterly Data

per share eps CPI Adj_EPS
201112 0.090 95.213 0.109
201203 1.410 96.783 1.686
201206 0.500 96.819 0.598
201209 1.050 97.633 1.245
201212 0.910 96.871 1.087
201303 1.220 98.209 1.438
201306 1.330 98.518 1.562
201309 1.040 98.790 1.218
201312 1.230 98.326 1.448
201403 1.640 99.695 1.904
201406 1.510 100.560 1.738
201409 1.660 100.428 1.913
201412 0.890 99.070 1.040
201503 1.530 99.621 1.777
201506 1.610 100.684 1.851
201509 1.200 100.392 1.383
201512 1.150 99.792 1.334
201603 1.590 100.470 1.832
201606 1.430 101.688 1.628
201609 1.530 101.861 1.738
201612 1.380 101.863 1.568
201703 1.610 102.862 1.811
201706 1.400 103.349 1.568
201709 1.370 104.136 1.523
201712 -3.990 104.011 -4.440
201803 1.600 105.290 1.759
201806 1.450 106.317 1.578
201809 1.440 106.507 1.565
201812 1.120 105.998 1.223
201903 1.390 107.251 1.500
201906 2.080 108.070 2.228
201909 0.660 108.329 0.705
201912 1.500 108.420 1.601
202003 2.170 108.902 2.306
202006 1.360 108.767 1.447
202009 1.330 109.815 1.402
202012 0.650 109.897 0.685
202103 2.320 111.754 2.403
202106 2.350 114.631 2.373
202109 1.370 115.734 1.370

Add all the adjusted EPS together and divide 10 will get our e10.


Johnson & Johnson  (NYSE:JNJ) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

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 of today is calculated as

Shiller PE Ratio=Share Price/E10
=162.97/5.47
=29.79

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of Johnson & Johnson was 33.32. The lowest was 15.54. And the median was 23.68.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Johnson & Johnson E10 Related Terms

Thank you for viewing the detailed overview of Johnson & Johnson's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Johnson & Johnson Business Description

Johnson & Johnson logo
Industry
Healthcare » Drug Manufacturers NAICS : 325412 SIC : 2834
Address
One Johnson and Johnson Plaza, New Brunswick, NJ, USA, 08933
Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. Geographically, just over half of total sales are generated in the United States.
Executives
Weinberger Mark A director METLIFE, INC. 200 PARK AVENUE NEW YORK NY 10166
Hewson Marillyn A director C/O CARPENTER TECHNOLOGY CORPORATION PO BOX 14662 READING PA 19612-4662
Washington A. Eugene director ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Wengel Kathryn E officer: EVP, Chief GSC Officer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Mcevoy Ashley officer: EVP, WW Chair, Medical Devices JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Perez William D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: PEREZ WILLIAM D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Mongon Thibaut officer: Exec VP, WW Chair, Consumer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Stoffels Paulus officer: Vice Chair, Exec Committee ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Ullmann Michael H officer: Exec VP, General Counsel JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Fasolo Peter officer: Exec VP, Chief HR Officer JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Wolk Joseph J officer: Exec VP, CFO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Taubert Jennifer L officer: EVP, WW Chair, Pharmaceuticals JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Sneed Michael E officer: EVP, Global Corp Aff & COO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Decker Robert J officer: Controller, CAO ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Gorsky Alex director, officer: Chairman, CEO JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933

Johnson & Johnson Headlines

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