The historical rank and industry rank for Johnson & Johnson's Shiller PE Ratio or its related term are showing as below:
BSP:JNJB34'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 19.28 Med: 25.92 Max: 33.32
Current: 20.87
During the past years, Johnson & Johnson's highest Shiller PE Ratio was 33.32. The lowest was 19.28. And the median was 25.92.
BSP:JNJB34's Shiller PE Ratio is ranked better than 59.66% of 533
companies
in the Drug Manufacturers industry
Industry Median: 25.13
vs BSP:JNJB34: 20.87
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Johnson & Johnson's adjusted earnings per share data for the three months ended in Mar. 2024 was R$0.445. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is R$2.40 for the trailing ten years ended in Mar. 2024.
Shiller PE for Stocks: The True Measure of Stock Valuation
Johnson & Johnson Shiller PE Ratio Historical Data
The historical data trend for Johnson & Johnson's Shiller 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.
Competitive Comparison of Johnson & Johnson's Shiller PE Ratio
For the Drug Manufacturers - General subindustry, Johnson & Johnson's Shiller PE Ratio, along with its competitors' market caps and Shiller 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's Shiller PE Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's Shiller PE Ratio falls into.
Johnson & Johnson Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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 E10 for the quarter that ended in Mar. 2024 is calculated as:
For example, Johnson & Johnson's adjusted earnings per share data for the three months ended in Mar. 2024 was:
Add all the adjusted EPS together and divide 10 will get our E10.
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 (BSP:JNJB34) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Johnson & Johnson Shiller PE Ratio Related Terms
Thank you for viewing the detailed overview of Johnson & Johnson's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Johnson & Johnson (BSP:JNJB34) Business Description
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.
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