Back to rankings

Johnson & Johnson (JNJ)

Fair Value
HealthcareDrug Manufacturers - GeneralUnited States

Fundamental

59

Price

$261.44

Market Cap

$613.99B

Part 1 · What the company is worth

Overview

Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of a range of products in the healthcare field worldwide. It operates in two segments, Innovative Medicine and MedTech. The Innovative Medicine segment offers products for various therapeutic areas, such as oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolism distributed through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. The MedTech segment provides a portfolio of products used in the surgery, orthopedic, cardiovascular, and vision fields distributed through wholesalers, hospitals and retailers, and used in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics. This segment also offers products and enabling technologies that support joint reconstruction, trauma, spine, sports related injuries, and others, as well as open, laparoscopic, and robotic surgical procedures; instrumentation, energy devices, stapling systems, wound closure, biosurgery products, and digital and robotic technologies; breast aesthetics and reconstruction; contact lenses under the ACUVUE brand; intraocular lenses for cataract surgery, and other products used in cataract and refractive procedures under the TECNIS brand. The company was founded in 1886 and is based in New Brunswick, New Jersey.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users

P/E: 37.2Score: 71Market cap: $156.74B

Both are large US-based pharmaceutical groups selling branded prescription medicines to the same hospitals, payers and physicians, with directly overlapping oncology, immunology, vaccine and anti-infective franchises.

P/E: 78.1Score: 78Market cap: $471.27B

AbbVie's Skyrizi and Rinvoq compete head-to-head with Johnson & Johnson's Stelara and Tremfya for the same psoriasis, psoriatic arthritis and inflammatory bowel disease patients.

P/E: 116.5Score: 70Market cap: $350.19B

Merck competes for the same oncology prescriptions, above all in solid tumours and multiple myeloma treatment lines, and for the same public and private vaccine budgets.

P/E: 27.9Score: 70Market cap: $170.98B

Abbott competes directly with Biosense Webster in cardiac electrophysiology catheters and mapping, and with the Vision business in eye-care devices.

P/E: 28.7Score: 76Market cap: $106.71B

Stryker fights DePuy Synthes for the same orthopaedic surgeons and hospital contracts in hip and knee implants, trauma and robotic-assisted surgery.

Medtronic plcMDT

Medtronic is the closest rival to the MedTech segment, selling competing cardiac ablation, surgical stapling and spine systems to the same hospital purchasing departments worldwide.

Balance Sheet & Liquidity

Revenue

$97.93B

Trailing 12 months (through 6/28/2026)

Net Income

$21.04B

Trailing 12 months (through 6/28/2026)

Free Cash Flow

$19.70B

Total Equity

$81.54B

Total Liabilities

$117.67B

Current Ratio

1.09

Interest Coverage

-

Debt/EBITDA

1.41

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$252.47

Current Price

$261.44

Margin of Safety

-3.6%

Fair Value Range

$187.16 - $317.78

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$279.64
Discounted cash flow (DCF):$316.44
Earnings multiple (P/E):$189.65
Graham growth formula:$290.87
Earnings power value (EPV):$101.97
Justified P/B:$184.05
Dividend discount (Gordon):$133.71
P/FFO, funds from operations:$227.77
Mid-cycle earnings:$202.11
Revenue multiple:$155.46
Analyst Consensus:Buy (22B / 9H / 0S)
Last Earnings Surprise:+0.89%

Valuation Metrics

P/E Ratio

30.36

ROE

32.9%

P/B Ratio

7.41

P/FCF

28.32

Gross Margin

67.9%

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

7.5%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (17)

  • EPS shows upward trend
  • EPS CAGR 6.37%
  • Price CAGR 8.71%
  • Gross margin 67.9%
  • P/FCF 28.32
  • Debt/equity ratio
  • Positive free cash flow
  • CapEx intensity
  • Current ratio
  • Debt/EBITDA
  • Return on tangible assets
  • ROE 25.7%
  • Analyst consensus: 71% buy
  • PEG ratio 1.96
  • Earnings quality (operating cash flow / net income) 1.31
  • Share dilution 0.0%
  • Piotroski F-Score 5/9

Failed (7)

  • P/B ratio 7.41
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Revenue growth 5Y 2.7%
  • Earnings surprise, average 0.4%
  • Net margin trend 21.5% vs 25.0%

Unavailable (4)

  • ROIC –
  • Dividend payout –
  • Operating margin –
  • Interest coverage

Piotroski F-Score

5/9

Mixed signals: some areas need attention

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

1.31

High quality: earnings backed by cash

Share Dilution

0.0%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Joaquin DuatoCEO & Chairman62
Mr. Joseph James Wolk CPAExecutive VP & CFO58
Dr. John C. Reed M.D., Ph.D.Executive Vice President of Innovative Medicine and R&D67
Mr. Timothy SchmidExecutive VP & Worldwide Chairman of MedTech55
Mr. Robert J. Decker Jr.Controller & Chief Accounting Officer52
Mr. James SwansonExecutive VP & Chief Information Officer59
Mr. Ryan KoorsVice President of Investor Relations-
Mr. Dirk BrinckmanChief Compliance Officer-
Ms. Elizabeth Forminard J.D.Executive VP & Chief Legal Officer54
Ms. Kristen Blair MulhollandExecutive VP & Chief HR Officer58

Audit Risk

4

Board Risk

7

Compensation Risk

4

Shareholder Rights Risk

3

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-11

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-23

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-04

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for JNJ, sourced from Markets Gazette.

  • 3d agoNEUTRAL
    J&J CEO Joaquin Duato on Obesity, Cancer and AI | The David Rubenstein Show

    Johnson & Johnson CEO Joaquin Duato has stated the company will not pursue the obesity market, instead prioritizing its core growth pillar in oncology and addressing challenges like dementia. Duato also indicated that artificial intelligence is expected to significantly accelerate drug discovery and development processes. This strategic focus on oncology and leveraging AI for R&D, while sidestepping the competitive obesity drug market, suggests a continued emphasis on innovation and high-impact therapeutic areas for the healthcare giant.

  • 8/2/2026POSITIVE
    This Surgical Robot Could Transform the Operating Room

    Johnson & Johnson has secured FDA approval for its Ottava surgical robot, marking a significant milestone after years of development and substantial investment. This breakthrough positions J&J to potentially disrupt the established surgical robotics market, currently dominated by early entrants. Investors will be watching closely to see if Ottava can gain market share and challenge competitors, potentially driving future revenue growth for the healthcare giant.

  • 7/31/2026NEUTRAL
    Wall Street Week | Warsh’s Waiting Game, EU Merger Rules, Robotic Surgeons

    Johnson & Johnson is entering the robotic surgery market, a sector experiencing rapid growth. Despite entering the race years after competitors, the company is banking on a distinct strategy to achieve success. This move signifies J&J's strategic diversification into a high-potential medical technology field, aiming to capture market share against established players. Investors will be watching to see if their unique approach can overcome the initial disadvantage and establish a strong foothold in this competitive landscape.

  • 6/17/2026NEUTRAL
    J&J Has No Plans to Enter Obesity Drugs Market, CEO Says

    Johnson & Johnson's CEO, Joaquin Duato, has stated the company has no immediate plans to enter the lucrative obesity drug market. This strategic decision shifts focus towards core areas like oncology, differentiating J&J from competitors actively pursuing weight-loss medications. While rivals Eli Lilly and Novo Nordisk have seen success with their obesity drugs, J&J's stance suggests a preference for its established therapeutic areas. Investors will monitor if this focus yields competitive advantages or if J&J misses out on a significant growth opportunity.

  • 4/14/2026POSITIVE
    Inside J&J’s Next Blockbuster Drug

    Johnson & Johnson's CFO, Joseph Wolk, indicated that the company's new psoriasis pill is on track to become a major revenue driver, having already reached 1,500 patients within days of launch. This positive development, coupled with a robust internal pipeline that allows J&J to bypass large, risky acquisitions, supports the company's decision to raise its financial guidance. Investors can anticipate continued long-term double-digit growth, driven by innovative pharmaceutical products and strategic pipeline management.

  • 4/9/2026NEUTRAL
    Johnson & Johnson Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

    Johnson & Johnson (JNJ) is set to report its Q1 earnings on April 14th, with analysts forecasting $2.67 per share and $23.6 billion in revenue. The company also received FDA approval for its TECNIS PureSee lens, a positive development for its medical devices segment. While the lens approval offers a potential growth catalyst, the upcoming earnings report carries significant weight. Investors will be closely watching revenue figures and forward guidance to gauge the company's performance and outlook amidst evolving market conditions and healthcare sector dynamics.

  • 3/6/2026POSITIVE
    FDA Clears Johnson & Johnson's Multiple Myeloma Combo Drug After Strong Survival Results

    The FDA has approved Johnson & Johnson's combination therapy, Tecvayli with Darzalex Faspro, for multiple myeloma. This approval follows strong Phase 3 survival results, indicating significant patient benefit. The clearance marks a key advancement for J&J in the oncology space, bolstering its innovative treatment portfolio. For investors, the green light for new drugs with promising outcomes can lead to increased future revenue and a higher stock valuation, signaling a robust development pipeline.

via Markets Gazette