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Johnson & JohnsonXSWX:JNJ +1.13%76 EV-to-EBIT is 26.00 as of Jul. 25, 2026, which is 23% above its 10-year median of 21.18. GuruFocus rates XSWX:JNJ with a GF Score™ of 76/100 and a GF Value™ of CHF155.68 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 690 Drug Manufacturers companies, Johnson & Johnson ranks worse than 68.99% on this metric.
Johnson & Johnson (XSWX:JNJ) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Johnson & Johnson's Enterprise Value for the quarter that ended in Jun. 2026 was CHF516,747 Mil.
Johnson & Johnson's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF20,836 Mil.
* 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.
Johnson & Johnson EV-to-EBIT Related Terms
Johnson & Johnson EV-to-EBIT Historical Data
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The historical data trend for Johnson & Johnson's EV-to-EBIT 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.
XSWX:JNJ vs ABBV, MRK, AMGN: EV-to-EBIT Comparison
For the Drug Manufacturers - General subindustry, Johnson & Johnson's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's EV-to-EBIT falls into.
Johnson & Johnson's current Enterprise Value is CHF541,705 Mil.
Johnson & Johnson's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF20,836 Mil.
* 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.
Johnson & Johnson (XSWX:JNJ) has a EV-to-EBIT of 26.00 as of Jul. 25, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Johnson & Johnson and its competitors. This is 23% above median its historical median of 21.18. Over the past decade, Johnson & Johnson's EV-to-EBIT has ranged from 13.74 to 32.78. According to the industry distribution chart, Johnson & Johnson ranks #476 out of 690 companies in the Drug Manufacturers industry, placing it in the top 69%.
Is Johnson & Johnson's EV-to-EBIT too high?
Johnson & Johnson's current EV-to-EBIT of 26.00 is 23% above median its 10-year median of 21.18. Over the past 10 years, this metric has ranged from a low of 13.74 to a high of 32.78. The Drug Manufacturers industry median EV-to-EBIT is 15.46. Johnson & Johnson's value of 26.00 is 68.2% above this industry median. Based on the distribution chart, Johnson & Johnson ranks #476 out of 690 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Johnson & Johnson has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson & Johnson's EV-to-EBIT compare to ABBV and MRK?
According to the Drug Manufacturers industry distribution chart, Johnson & Johnson ranks #476 out of 690 companies for EV-to-EBIT. This places Johnson & Johnson in the lower half of its industry. The industry median EV-to-EBIT is 15.46. Johnson & Johnson's value of 26.00 is 68.2% above this benchmark. Historically, Johnson & Johnson's own EV-to-EBIT has ranged from 13.74 to 32.78 over the past decade. While the company's 10-year median is 21.18 vs. the industry median of 15.46, Johnson & Johnson has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Drug Manufacturers company?
The median EV-to-EBIT among Drug Manufacturers companies is 15.46, based on 690 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson & Johnson's current EV-to-EBIT of 26.00 is 68.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Johnson & Johnson and its competitors. For the Drug Manufacturers industry, the median EV-to-EBIT is 15.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson & Johnson's current EV-to-EBIT is 26.00, which is 23% above median its own 10-year median of 21.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson & Johnson stock overvalued right now?
Based on GuruFocus' analysis, Johnson & Johnson (XSWX:JNJ) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF155.68, compared to a current price of CHF214.05 — trading 37.5% above its estimated fair value. The current EV-to-EBIT is 26.00, which is 23% above median its 10-year median of 21.18 and 68.2% above the Drug Manufacturers industry median of 15.46. Johnson & Johnson's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Johnson & Johnson (XSWX:JNJ), the current EV-to-EBIT is 26.00 as of Jul. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Johnson & Johnson (XSWX:JNJ) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson & Johnson stock appears to be overvalued.
The current stock price of CHF214.05 is trading 37.5% above its estimated GF Value™ of CHF155.68.
GuruFocus considers Johnson & Johnson to be Significantly Overvalued.
Key valuation signals for XSWX:JNJ:
EV-to-EBIT: 26.00 (23% above median its 10-year median of 21.18)
GF Value™: CHF155.68 vs. price of CHF214.05 (37.5% above fair value)
Industry Position: 68.2% above the Drug Manufacturers median (#476 of 690)
No single metric tells the full story. See the XSWX:JNJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: innovative medicine and medtech. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023. After restructurings in 2023-24, the drug division focuses on three main therapeutic areas: immunology, oncology, and neurology. Geographically, just over half of total revenue is generated in the United States.
76GF Score
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