Latest Ratios: P/E Ratio 24.2x · EV/EBITDA 20.3x · ROE 35.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $643.3B | $504.4B | $352.4B | $401.3B | $470.6B | $457.4B | $420.3B | $391.6B | $352.1B | $383.6B | $321.3B |
| Enterprise Value | $671.5B | $532.6B | $364.9B | $408.8B | $497.3B | $476.7B | $441.6B | $401.9B | $364.5B | $400.3B | $329.5B |
| P/E Ratio → | 24.23 | 18.82 | 25.05 | 11.42 | 26.25 | 21.90 | 28.56 | 25.91 | 23.00 | 297.28 | 19.43 |
| P/S Ratio | 6.83 | 5.36 | 3.97 | 4.71 | 5.88 | 5.81 | 5.09 | 4.77 | 4.32 | 5.02 | 4.47 |
| P/B Ratio | 7.96 | 6.19 | 4.93 | 5.84 | 6.13 | 6.18 | 6.64 | 6.58 | 5.89 | 6.38 | 4.56 |
| P/FCF | 32.66 | 25.61 | 17.76 | 21.99 | 27.38 | 23.15 | 20.82 | 19.66 | 19.00 | 21.58 | 20.67 |
| P/OCF | 26.23 | 20.56 | 14.52 | 17.61 | 22.20 | 19.54 | 17.86 | 16.72 | 15.86 | 18.22 | 17.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.65 | 4.11 | 4.80 | 6.22 | 6.05 | 5.35 | 4.90 | 4.47 | 5.24 | 4.58 |
| EV / EBITDA | 20.29 | 16.09 | 12.37 | 13.23 | 17.77 | 16.83 | 16.38 | 14.37 | 12.97 | 16.31 | 13.37 |
| EV / EBIT | 26.24 | 15.88 | 20.92 | 25.82 | 25.33 | 24.62 | 26.45 | 22.78 | 19.18 | 21.52 | 16.05 |
| EV / FCF | — | 27.04 | 18.39 | 22.40 | 28.94 | 24.13 | 21.87 | 20.18 | 19.67 | 22.52 | 21.20 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.8% | 72.8% | 69.1% | 68.8% | 69.3% | 70.3% | 65.6% | 66.4% | 66.8% | 66.7% | 69.7% |
| Operating Margin | 27.2% | 27.2% | 24.9% | 27.5% | 26.3% | 26.6% | 23.9% | 25.6% | 26.0% | 24.7% | 29.1% |
| Net Profit Margin | 28.5% | 28.5% | 15.8% | 41.3% | 22.4% | 26.5% | 17.8% | 18.4% | 18.8% | 1.7% | 23.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 35.0% | 35.0% | 20.1% | 48.3% | 23.8% | 30.4% | 24.0% | 25.4% | 25.5% | 2.0% | 23.4% |
| ROA | 14.1% | 14.1% | 8.1% | 19.8% | 9.7% | 11.7% | 8.8% | 9.7% | 9.9% | 0.9% | 12.0% |
| ROIC | 19.8% | 19.8% | 20.7% | 19.5% | 16.0% | 17.7% | 19.2% | 22.2% | 21.3% | 18.2% | 20.1% |
| ROCE | 18.6% | 18.6% | 17.6% | 18.5% | 15.7% | 15.6% | 15.5% | 17.2% | 17.0% | 15.6% | 18.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.59 | 0.59 | 0.51 | 0.43 | 0.52 | 0.46 | 0.56 | 0.47 | 0.51 | 0.57 | 0.39 |
| Debt / EBITDA | 1.45 | 1.45 | 1.24 | 0.95 | 1.42 | 1.19 | 1.31 | 0.99 | 1.08 | 1.41 | 1.10 |
| Net Debt / Equity | — | 0.35 | 0.18 | 0.11 | 0.35 | 0.26 | 0.34 | 0.17 | 0.21 | 0.28 | 0.12 |
| Net Debt / EBITDA | 0.85 | 0.85 | 0.42 | 0.24 | 0.96 | 0.68 | 0.79 | 0.37 | 0.44 | 0.68 | 0.33 |
| Debt / FCF | — | 1.43 | 0.63 | 0.41 | 1.56 | 0.97 | 1.05 | 0.52 | 0.67 | 0.94 | 0.52 |
| Interest Coverage | 34.55 | 34.55 | 23.10 | 20.51 | 71.14 | 105.80 | 83.07 | 55.49 | 18.91 | 19.92 | 28.28 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.03 | 1.03 | 1.11 | 1.16 | 0.99 | 1.35 | 1.21 | 1.26 | 1.47 | 1.41 | 2.47 |
| Quick Ratio | 0.77 | 0.77 | 0.86 | 0.91 | 0.81 | 1.12 | 0.99 | 1.01 | 1.20 | 1.12 | 2.16 |
| Cash Ratio | 0.37 | 0.37 | 0.49 | 0.50 | 0.40 | 0.70 | 0.59 | 0.54 | 0.63 | 0.60 | 1.59 |
| Asset Turnover | — | 0.47 | 0.49 | 0.51 | 0.43 | 0.43 | 0.47 | 0.52 | 0.53 | 0.49 | 0.51 |
| Inventory Turnover | 1.81 | 1.81 | 2.21 | 2.37 | 2.40 | 2.25 | 3.04 | 3.05 | 3.15 | 2.90 | 2.68 |
| Days Sales Outstanding | — | 66.57 | 77.78 | 63.75 | 77.18 | 88.00 | 60.00 | 64.41 | 63.08 | 64.41 | 59.40 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.9% | 2.5% | 3.4% | 2.9% | 2.5% | 2.4% | 2.5% | 2.5% | 2.7% | 2.3% | 2.7% |
| Payout Ratio | 46.2% | 46.2% | 84.1% | 33.5% | 65.1% | 52.8% | 71.2% | 65.6% | 62.1% | 687.9% | 52.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 5.3% | 4.0% | 8.8% | 3.8% | 4.6% | 3.5% | 3.9% | 4.3% | 0.3% | 5.1% |
| FCF Yield | 3.1% | 3.9% | 5.6% | 4.5% | 3.7% | 4.3% | 4.8% | 5.1% | 5.3% | 4.6% | 4.8% |
| Buyback Yield | 0.9% | 1.2% | 0.7% | 1.3% | 1.3% | 0.8% | 0.8% | 1.7% | 1.7% | 1.7% | 2.8% |
| Total Shareholder Yield | 2.8% | 3.6% | 4.0% | 4.2% | 3.8% | 3.2% | 3.3% | 4.3% | 4.4% | 4.0% | 5.5% |
| Shares Outstanding | — | $2.4B | $2.4B | $2.6B | $2.7B | $2.7B | $2.7B | $2.7B | $2.7B | $2.7B | $2.8B |
Litigation and Patent Cliffs
Based on current market data, JNJ trades at a 23.09x TTM P/E, which appears to incorporate a stability premium relative to pure-play pharma peers like Pfizer, yet remains significantly lower than high-growth innovators like Eli Lilly, suggesting a market consensus favoring steady, diversified cash flows over speculative growth.
The forward P/E of 22.00 indicates that investors are pricing in moderate earnings growth, likely contingent on the successful integration of recent MedTech acquisitions. While the P/S ratio of 6.51 is elevated compared to historical averages, it reflects the company's transition toward a higher-margin, pure-play healthcare model following the Kenvue divestiture.
As reported in financial statements, ROIC has fluctuated between 3.4% and 6.1% over the last ten quarters, a trend that suggests the company is currently in a capital-intensive phase of re-investing in its MedTech infrastructure rather than maximizing immediate returns on its existing asset base.
The compression in ROIC relative to historical norms may be attributed to the significant goodwill and intangible assets added through recent M&A activity. Investors should monitor whether the integration of these specialized assets eventually drives a return to higher capital efficiency as the new portfolio reaches operational maturity.
According to quarterly data, JNJ's cash conversion cycle has remained elevated, averaging over 100 days, which indicates that the company's complex manufacturing and distribution requirements for specialized medical devices and pharmaceuticals necessitate significant inventory holdings that may constrain short-term liquidity relative to leaner, pure-play competitors.
The high days inventory outstanding (DIO) of 191 days in 2026Q1 highlights the operational burden of maintaining a global supply chain for high-precision medical instruments. This extended cycle suggests that JNJ prioritizes supply chain reliability and product availability over aggressive working capital optimization, which is a strategic trade-off for a healthcare leader.
Based on reported figures, JNJ maintains a debt-to-equity ratio that has remained below 0.70 throughout the last ten quarters, providing the company with a significant financial buffer that appears designed to absorb potential legal settlements while maintaining its AAA-rated credit profile for future strategic acquisitions.
The interest coverage ratio, which remains robust despite recent M&A-related debt issuance, confirms that the company's debt service remains well-supported by its core operating cash flows. This conservative capital structure is a critical defensive feature that distinguishes JNJ from more highly leveraged peers in the pharmaceutical sector.
The P/E ratio is frequently misapplied to JNJ, as it fails to account for the significant non-recurring legal accruals and tax-related adjustments that have distorted net income figures following the Kenvue separation, thereby obscuring the company's true underlying earning power and operational cash generation capabilities.
Analysts should instead prioritize EV/EBITDA or P/FCF to better evaluate the company's performance, as these metrics are less sensitive to the accounting noise generated by litigation-related charges. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation during this period of structural portfolio transformation.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying JNJ stock.
Johnson & Johnson's current P/E ratio is 24.2x. The historical average is 22.3x. This places it at the 66th percentile of its historical range.
Johnson & Johnson's current EV/EBITDA is 20.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.8x.
Johnson & Johnson's return on equity (ROE) is 35.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 25.6%.
Based on historical data, Johnson & Johnson is trading at a P/E of 24.2x. This is at the 66th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Johnson & Johnson's current dividend yield is 1.91% with a payout ratio of 46.2%.
Johnson & Johnson has 72.8% gross margin and 27.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Johnson & Johnson's Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.