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Johnson & Johnson (XSWX:JNJ) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Johnson & Johnson Forward PE Ratio Related Terms
Johnson & Johnson Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Johnson & Johnson's Forward PE Ratio 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.
Johnson & Johnson Forward PE Ratio Chart
Johnson & Johnson Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
Forward PE Ratio
15.97
16.00
18.38
14.79
16.29
18.12
Johnson & Johnson Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2026-03
2026-06
Forward PE Ratio
15.97
15.82
17.48
16.64
16.00
17.70
19.08
17.36
18.38
16.29
14.79
16.26
14.79
16.13
16.08
15.24
16.29
16.47
19.72
17.33
18.12
15.75
21.28
22.01
XSWX:JNJ vs ABBV, MRK, AMGN: Forward PE Ratio Comparison
For the Drug Manufacturers - General subindustry, Johnson & Johnson's Forward PE Ratio, along with its competitors' market caps and Forward 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 Forward PE Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Johnson & Johnson (XSWX:JNJ) has a Forward PE Ratio of 22.56 as of Jul. 15, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Johnson & Johnson and its competitors. According to the industry distribution chart, Johnson & Johnson ranks #246 out of 409 companies in the Drug Manufacturers industry, placing it in the top 60.1%.
Is Johnson & Johnson's Forward PE Ratio too high?
Johnson & Johnson's current Forward PE Ratio is 22.56. The Drug Manufacturers industry median Forward PE Ratio is 17.39. Johnson & Johnson's value of 22.56 is 29.7% above this industry median. Based on the distribution chart, Johnson & Johnson ranks #246 out of 409 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 Forward PE Ratio compare to ABBV and MRK?
According to the Drug Manufacturers industry distribution chart, Johnson & Johnson ranks #246 out of 409 companies for Forward PE Ratio. This places Johnson & Johnson in the lower half of its industry. The industry median Forward PE Ratio is 17.39. Johnson & Johnson's value of 22.56 is 29.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Drug Manufacturers company?
The median Forward PE Ratio among Drug Manufacturers companies is 17.39, based on 409 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson & Johnson's current Forward PE Ratio of 22.56 is 29.7% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Johnson & Johnson and its competitors. For the Drug Manufacturers industry, the median Forward PE Ratio is 17.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson & Johnson's current Forward PE Ratio is 22.56. 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 CHF154.50, compared to a current price of CHF205.10 — trading 32.8% above its estimated fair value. The current Forward PE Ratio is 22.56 and 29.7% above the Drug Manufacturers industry median of 17.39. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Johnson & Johnson (XSWX:JNJ), the current Forward PE Ratio is 22.56 as of Jul. 15, 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 CHF205.10 is trading 32.8% above its estimated GF Value™ of CHF154.50.
GuruFocus considers Johnson & Johnson to be Significantly Overvalued.
Key valuation signals for XSWX:JNJ:
Forward PE Ratio: 22.56
GF Value™: CHF154.50 vs. price of CHF205.10 (32.8% above fair value)
Industry Position: 29.7% above the Drug Manufacturers median (#246 of 409)
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
Get the complete analysis for XSWX:JNJ
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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