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Johnson & Johnson (NYSE:JNJ) GF Value Rank

: 6 (As of Today)
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Johnson & Johnson has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

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

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

* The bar in red indicates where Johnson & Johnson's GF Value Rank falls into.

Johnson & Johnson GF Value Rank Related Terms

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Johnson & Johnson (NYSE:JNJ) Business Description

Johnson & Johnson logo
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. 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.
John C Reed officer: EVP, Pharmaceuticals R&D ONE JOHNSON & JOHNSON PLAZA, WHQ 2134, NEW BRUNSWICK NJ 08933
Paula A Johnson director 22 CHERRY HILL DRIVE, DANVERS MA 01923
James D. Swanson officer: EVP, Chief Information Officer ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Elizabeth Forminard officer: Executive VP, General Counsel ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Darius Adamczyk director 855 S. MINT STREET, CHARLOTTE NC 28202
William Hait officer: See Remarks ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Vanessa Broadhurst officer: EVP, Global Corp Aff. ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Mathai Mammen officer: EVP, Pharm, R&D THERAVANCE,INC., 901 GATEWAY BLVD., SOUTH SAN FRANCISCO CA 94080
Nadja West director 1915 REXFORD ROAD, CHARLOTTE NC 28211
Robert J Decker officer: Controller, CAO ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Hubert Joly director C/O BEST BUY CO, INC., 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Mark A Weinberger director METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
Marillyn A Hewson director C/O CARPENTER TECHNOLOGY CORPORATION, PO BOX 14662, READING PA 19612-4662
Thibaut Mongon officer: Exec VP, WW Chair, Consumer JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933