Johnson & Johnson
XBER:JNJ
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Johnson & Johnson
NYSE:JNJ
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US |
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (16.5), the stock would be worth €136.03 (23% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 21.4 | €175.76 |
0%
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| 3-Year Average | 16.5 | €136.03 |
-23%
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| 5-Year Average | 18 | €148.38 |
-16%
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| Industry Average | 12.1 | €99.49 |
-43%
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| Country Average | 19.6 | €161.41 |
-8%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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€600.5B
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Mar 2026
$26.8B
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= |
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€600.5B
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/ |
Dec 2026
$33.7B
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= |
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€600.5B
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/ |
Dec 2027
$36.4B
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= |
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€600.5B
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/ |
Dec 2028
$39.6B
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= |
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€600.5B
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/ |
Dec 2029
$44.9B
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= |
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€600.5B
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/ |
Dec 2030
$50.6B
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= |
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€600.5B
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/ |
Dec 2031
$54.5B
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= |
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€600.5B
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/ |
Dec 2032
$55.8B
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= |
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€600.5B
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/ |
Dec 2033
$57.6B
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Johnson & Johnson
XBER:JNJ
|
547.8B EUR | 21.4 | 26 | |
| US |
|
Eli Lilly and Co
NYSE:LLY
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835.2B USD | 29.2 | 40.5 | |
| CH |
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Roche Holding AG
SIX:ROG
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248.4B CHF | 13.4 | 20.1 | |
| UK |
|
AstraZeneca PLC
LSE:AZN
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216.4B GBP | 21.9 | 28 | |
| CH |
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Novartis AG
SIX:NOVN
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223.1B CHF | 15.6 | 19.5 | |
| US |
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Merck & Co Inc
NYSE:MRK
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276.9B USD | 11.5 | 15.2 | |
| IE |
E
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Endo International PLC
LSE:0Y5F
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244.4B USD | 970 | -83.6 | |
| DK |
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Novo Nordisk A/S
CSE:NOVO B
|
1.1T DKK | 9.8 | 11.4 | |
| US |
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Pfizer Inc
NYSE:PFE
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153.5B USD | 10.1 | 19.8 | |
| US |
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Bristol-Myers Squibb Co
NYSE:BMY
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118.2B USD | 8.9 | 16.8 | |
| FR |
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Sanofi SA
PAR:SAN
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97.1B EUR | 6.5 | 7.9 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
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.
