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Johnson & Johnson PS Ratio

: 4.89 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Johnson & Johnson's share price is $163.29. Johnson & Johnson's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $33.39. Hence, Johnson & Johnson's PS Ratio for today is 4.89.

Warning Sign:

Johnson & Johnson stock PS Ratio (=4.89) is close to 10-year high of 5.42

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

NYSE:JNJ' s PS Ratio Range Over the Past 10 Years
Min: 2.62   Med: 4.24   Max: 5.42
Current: 4.89

2.62
5.42

During the past 13 years, Johnson & Johnson's highest PS Ratio was 5.42. The lowest was 2.62. And the median was 4.24.

NYSE:JNJ's PS Ratio is ranked higher than
54% of the 143 Companies
in the Drug Manufacturers industry.

( Industry Median: 3.90 vs. NYSE:JNJ: 4.89 )

Johnson & Johnson's Revenue per Sharefor the three months ended in Jun. 2021 was $8.73. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $33.39.

Good Sign:

Johnson & Johnson has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Johnson & Johnson was 10.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was 3.60% per year. During the past 5 years, the average Revenue per Share Growth Rate was 4.90% per year. During the past 10 years, the average Revenue per Share Growth Rate was 3.40% per year.

During the past 13 years, Johnson & Johnson's highest 3-Year average Revenue per Share Growth Rate was 14.80% per year. The lowest was 1.30% per year. And the median was 8.20% per year.

Back to Basics: PS Ratio


Johnson & Johnson PS Ratio Historical Data

The historical data trend for Johnson & Johnson's PS 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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.47 5.02 4.32 4.77 5.09

Johnson & Johnson Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PS Ratio 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 4.66 4.92 5.09 5.21 4.93

Competitive Comparison

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

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

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



Johnson & Johnson PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

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

PS Ratio=Share Price/Revenue per Share (TTM)
=163.29/33.391
=4.89

Johnson & Johnson's Share Price of today is $163.29.
Johnson & Johnson's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $33.39.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Johnson & Johnson  (NYSE:JNJ) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Johnson & Johnson PS Ratio Related Terms

Thank you for viewing the detailed overview of Johnson & Johnson's PS Ratio 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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