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Johnson & Johnson (XBUL:JNJ) E10 : лв7.11 (As of Dec. 2024)


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What is Johnson & Johnson E10?

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 Dec. 2024 was лв2.559. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is лв7.11 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Johnson & Johnson's average E10 Growth Rate was 0.40% per year. During the past 3 years, the average E10 Growth Rate was 8.20% per year. During the past 5 years, the average E10 Growth Rate was 9.30% per year. During the past 10 years, the average E10 Growth Rate was 4.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Johnson & Johnson was 16.60% per year. The lowest was -0.10% per year. And the median was 11.45% per year.

As of today (2025-03-28), Johnson & Johnson's current stock price is лв137.14. Johnson & Johnson's E10 for the quarter that ended in Dec. 2024 was лв7.11. Johnson & Johnson's Shiller PE Ratio of today is 19.29.

During the past 13 years, the highest Shiller PE Ratio of Johnson & Johnson was 33.32. The lowest was 19.28. And the median was 26.39.


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 E10 Chart

Johnson & Johnson Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 7.11

Johnson & Johnson Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 Get a 7-Day Free Trial 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 - - 6.95 5.99 7.11

Competitive Comparison of Johnson & Johnson's E10

For the Drug Manufacturers - General subindustry, Johnson & Johnson's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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's Shiller PE Ratio Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Johnson & Johnson's Shiller PE Ratio falls into.


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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 Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=2.559/133.1571*133.1571
=2.559

Current CPI (Dec. 2024) = 133.1571.

Johnson & Johnson Quarterly Data

per share eps CPI Adj_EPS
201503 2.777 99.621 3.712
201506 2.922 100.684 3.864
201509 2.178 100.392 2.889
201512 2.087 99.792 2.785
201603 2.886 100.470 3.825
201606 2.596 101.688 3.399
201609 2.777 101.861 3.630
201612 2.505 101.863 3.275
201703 2.922 102.862 3.783
201706 2.541 103.349 3.274
201709 2.487 104.136 3.180
201712 -7.242 104.011 -9.271
201803 2.904 105.290 3.673
201806 2.632 106.317 3.296
201809 2.614 106.507 3.268
201812 2.033 105.998 2.554
201903 2.523 107.251 3.132
201906 3.775 108.070 4.651
201909 1.198 108.329 1.473
201912 2.723 108.420 3.344
202003 3.939 108.902 4.816
202006 2.469 108.767 3.023
202009 2.414 109.815 2.927
202012 1.180 109.897 1.430
202103 4.211 111.754 5.017
202106 4.266 114.631 4.955
202109 2.487 115.734 2.861
202112 3.213 117.630 3.637
202203 3.503 121.301 3.845
202206 3.267 125.017 3.480
202209 3.049 125.227 3.242
202212 2.414 125.222 2.567
202303 -0.054 127.348 -0.056
202306 3.558 128.729 3.680
202309 18.532 129.860 19.003
202312 3.031 129.419 3.119
202403 2.432 131.776 2.457
202406 3.503 132.554 3.519
202409 2.015 133.029 2.017
202412 2.559 133.157 2.559

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


Johnson & Johnson  (XBUL: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
=137.14/7.11
=19.29

* 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 19.28. And the median was 26.39.


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

Address
One Johnson & Johnson Plaza, New Brunswick, NJ, USA, 08933
Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: pharmaceutical and medical devices. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. Geographically, just over half of total revenue is generated in the United States.

Johnson & Johnson Headlines