Johnson & Johnson’s valuation
The above chart compares the revenues and earnings per share (or EPS) for Johnson & Johnson over the last few quarters. For 1Q18, Johnson & Johnson reported earnings per share of $2.06.
The price-to-earnings (or PE) multiple represents what one share can buy an equity investor. As of April 19, 2018, Johnson & Johnson was trading at a forward PE multiple of ~15.5x as compared to the industry average of 15.1x. Merck (MRK) and Bristol-Myers Squibb (BMY) are trading at a lower forward PE multiple of 13.8x and 15.2x, respectively, as compared to Johnson & Johnson, while Eli Lilly (LLY) is trading at a higher forward PE multiple of 15.8x.
On a capital-structure-neutral basis, Johnson & Johnson trades at ~12.0x as compared to the industry average of ~13.4x as of April 19, 2018. Other competitors such as Merck (MRK) are trading at a lower forward EV-to-EBITDA multiple of 11.2x as compared to Johnson & Johnson, while Eli Lilly (LLY) and Bristol-Myers Squibb (BMY) are trading at a higher forward EV-to-EBITDA multiple of 12.5x and 13.4x, respectively.
Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!