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Johnson & Johnson (Johnson & Johnson) Cyclically Adjusted PS Ratio : 4.21 (As of Apr. 27, 2024)


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What is Johnson & Johnson Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Johnson & Johnson's current share price is $146.14. Johnson & Johnson's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was $34.74. Johnson & Johnson's Cyclically Adjusted PS Ratio for today is 4.21.

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

JNJ' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 3.74   Med: 4.81   Max: 5.9
Current: 4.23

During the past years, Johnson & Johnson's highest Cyclically Adjusted PS Ratio was 5.90. The lowest was 3.74. And the median was 4.81.

JNJ's Cyclically Adjusted PS Ratio is ranked worse than
77.31% of 736 companies
in the Drug Manufacturers industry
Industry Median: 2.06 vs JNJ: 4.23

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Johnson & Johnson's adjusted revenue per share data for the three months ended in Dec. 2023 was $8.799. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $34.74 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Johnson & Johnson Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Johnson & Johnson's Cyclically Adjusted 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 Cyclically Adjusted PS Ratio Chart

Johnson & Johnson Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.21 5.46 5.52 5.32 4.51

Johnson & Johnson Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial 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 4.57 4.80 4.47 4.51 -

Competitive Comparison of Johnson & Johnson's Cyclically Adjusted PS Ratio

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

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

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



Johnson & Johnson Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=146.14/34.74
=4.21

* 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's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Johnson & Johnson's adjusted Revenue per Share data for the three months ended in Dec. 2023 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=8.799/129.4194*129.4194
=8.799

Current CPI (Dec. 2023) = 129.4194.

Johnson & Johnson Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 6.302 99.695 8.181
201406 6.783 100.560 8.730
201409 6.447 100.428 8.308
201412 6.423 99.070 8.391
201503 6.148 99.621 7.987
201506 6.325 100.684 8.130
201509 6.092 100.392 7.853
201512 6.360 99.792 8.248
201603 6.235 100.470 8.032
201606 6.614 101.688 8.418
201609 6.398 101.861 8.129
201612 6.546 101.863 8.317
201703 6.450 102.862 8.115
201706 6.872 103.349 8.605
201709 7.178 104.136 8.921
201712 7.365 104.011 9.164
201803 7.324 105.290 9.002
201806 7.654 106.317 9.317
201809 7.460 106.507 9.065
201812 7.481 105.998 9.134
201903 7.418 107.251 8.951
201906 7.639 108.070 9.148
201909 7.764 108.329 9.276
201912 7.762 108.420 9.265
202003 7.747 108.902 9.207
202006 6.879 108.767 8.185
202009 7.898 109.815 9.308
202012 8.416 109.897 9.911
202103 8.351 111.754 9.671
202106 8.726 114.631 9.852
202109 8.725 115.734 9.757
202112 3.656 117.630 4.022
202203 8.785 121.301 9.373
202206 9.003 125.017 9.320
202209 7.514 125.227 7.766
202212 7.515 125.222 7.767
202303 9.498 127.348 9.653
202306 9.723 128.729 9.775
202309 8.374 129.860 8.346
202312 8.799 129.419 8.799

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Johnson & Johnson  (NYSE:JNJ) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Johnson & Johnson Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Johnson & Johnson's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Johnson & Johnson (Johnson & Johnson) Business Description

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. 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.
Executives
Timothy Schmid officer: EVP, WW Chair, MedTech ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
William Hait officer: See Remarks ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Peter Fasolo officer: VP, Worldwide Human Resources JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Kathryn E Wengel officer: EVP, Chief GSC Officer JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
John C Reed officer: EVP, Pharmaceuticals R&D ONE JOHNSON & JOHNSON PLAZA, WHQ 2134, NEW BRUNSWICK NJ 08933
James D. Swanson officer: EVP, Chief Information Officer ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Paula A Johnson director 22 CHERRY HILL DRIVE, DANVERS MA 01923
Joseph J Wolk officer: Exec VP, CFO JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Ashley Mcevoy officer: EVP, WW Chair, Medical Devices JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Jennifer L Taubert officer: EVP, WW Chair, Pharmaceuticals JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Robert J Decker officer: Controller, CAO ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Thibaut Mongon officer: Exec VP, WW Chair, Consumer JOHNSON & JOHNSON, 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
Vanessa Broadhurst officer: EVP, Global Corp Aff. ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933