Johnson & Johnson
NYSE:JNJ
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Johnson & Johnson
NYSE:JNJ
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EV/IC
Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.
Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.
Valuation Scenarios
If EV/IC returns to its 3-Year Average (2.7), the stock would be worth $179.71 (21% downside from current price).
| Scenario | EV/IC Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 3.4 | $227.19 |
0%
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| 3-Year Average | 2.7 | $179.71 |
-21%
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| 5-Year Average | 2.8 | $185.45 |
-18%
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| Industry Average | 2.7 | $180.83 |
-20%
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| Country Average | 1.5 | $98.62 |
-57%
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Forward EV/IC
Today’s price vs future invested capital
Peer Comparison
| Market Cap | EV/IC | P/E | ||||
|---|---|---|---|---|---|---|
| US |
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Johnson & Johnson
NYSE:JNJ
|
547.1B USD | 3.4 | 26 | |
| US |
|
Eli Lilly and Co
NYSE:LLY
|
908.9B USD | 8.9 | 36 | |
| CH |
|
Roche Holding AG
SIX:ROG
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248.4B CHF | 2.9 | 20.1 | |
| UK |
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AstraZeneca PLC
LSE:AZN
|
209.6B GBP | 3.7 | 27.4 | |
| CH |
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Novartis AG
SIX:NOVN
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221.1B CHF | 2.9 | 20.7 | |
| US |
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Merck & Co Inc
NYSE:MRK
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277.6B USD | 2.6 | 31.1 | |
| IE |
E
|
Endo International PLC
LSE:0Y5F
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244.4B USD | 56 | -83.6 | |
| DK |
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Novo Nordisk A/S
CSE:NOVO B
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1.2T DKK | 2.7 | 12.1 | |
| US |
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Pfizer Inc
NYSE:PFE
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149.7B USD | 1 | 19.3 | |
| US |
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Bristol-Myers Squibb Co
NYSE:BMY
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118.9B USD | -9.1 | 4 516.9 | |
| FR |
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Sanofi SA
PAR:SAN
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96.5B EUR | 1.1 | 10.2 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0.9 |
| Median | 1.5 |
| 70th Percentile | 2.9 |
| Max | 566 432.7 |
Other Multiples
Johnson & Johnson
Glance View
Founded in 1886, Johnson & Johnson began its journey with a commitment to revolutionizing healthcare, starting with the sterile surgical dressings it produced to reduce infections in hospitals. Over the decades, this vision expanded into a global healthcare powerhouse, intricate in its operation yet unified in its mission to improve lives. Johnson & Johnson's business model is built on three core segments: pharmaceuticals, medical devices, and consumer health products. Each segment harnesses the synergy of innovation, research, and a deep understanding of customer needs. The pharmaceutical division, one of its most robust, thrives on producing treatments for various medical conditions, including immunology, oncology, and neuroscience. It is in this domain that cutting-edge research and development efforts translate into high-margin therapies, driving substantial portions of the company's revenue. Beyond pharmaceuticals, the medical devices segment forms a pillar of Johnson & Johnson's operations, offering a spectrum of products essential for surgeries, orthopedics, and vision care. These devices are integral for modern healthcare practices, with their premium positioning contributing significantly to the company’s financial health. Meanwhile, Johnson & Johnson's consumer health division addresses everyday wellness needs, with iconic brands like Band-Aid, Tylenol, and Neutrogena. This segment leverages global brand recognition and trust to generate steady, albeit lower-margin, income streams. Together, these segments compose a diversified revenue platform, buffered against sector-specific downturns and positioning Johnson & Johnson as a formidable entity in global healthcare markets.