Johnson & Johnson (WBO:JNJ) PEG Ratio

: 36.46 (As of Today)

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PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Johnson & Johnson's PE Ratio without NRI is 14.59. Johnson & Johnson's 5-Year EBITDA growth rate is 0.40%. Therefore, Johnson & Johnson's PEG Ratio for today is 36.46.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

The historical rank and industry rank for Johnson & Johnson's PEG Ratio or its related term are showing as below:

WBO:JNJ' s PEG Ratio Range Over the Past 10 Years
Min: 1.84 Med: 5.85 Max: 53.97
Current: 36.18

During the past 13 years, Johnson & Johnson's highest PEG Ratio was 53.97. The lowest was 1.84. And the median was 5.85.

WBO:JNJ's PEG Ratio is ranked worse than
97.59% of 373 companies
in the Drug Manufacturers industry
Industry Median: 1.64 vs WBO:JNJ: 36.18

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.

Johnson & Johnson PEG Ratio Historical Data

The historical data trend for Johnson & Johnson's PEG 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.

* Premium members only.

Johnson & Johnson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

PEG Ratio

9.91

10.78

10.70

15.68

Johnson & Johnson Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
PEG Ratio																50.44	-	-	-	-

Competitive Comparison

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

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

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

Johnson & Johnson PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Johnson & Johnson's PEG Ratio for today is calculated as

PEG Ratio	=	PE Ratio without NRI	/	5-Year EBITDA Growth Rate*
	=	14.58588462778	/	0.40
	=	36.46

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

Johnson & Johnson (WBO:JNJ) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.

Johnson & Johnson PEG Ratio Related Terms

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Johnson & Johnson (WBO:JNJ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Johnson & Johnson (WBO:JNJ) » Definitions » PEG Ratio

Comparable Companies

Traded in Other Exchanges

JNJ:USA JNJ:Peru JNJ:Mexico JNJ_KZ:Kazakhstan 1JNJ:Italy JNJd:UK 0R34:UK JNJ:Germany JNJ:Canada JNJB34:Brazil JNJ:Argentina

Address

One Johnson and Johnson Plaza, New Brunswick, NJ, USA, 08933

Website

https://www.jnj.com

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. The consumer group is being divested in 2023 under the new name Kenvue. Geographically, just over half of total revenue is generated in the United States.