Latest Ratios: P/E Ratio 24.4x · EV/EBITDA 20.4x · 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 | $648.0B | $504.4B | $352.4B | $401.3B | $470.6B | $457.4B | $420.3B | $391.6B | $352.1B | $383.6B | $321.3B |
| Enterprise Value | $676.2B | $532.6B | $364.9B | $408.8B | $497.3B | $476.7B | $441.6B | $401.9B | $364.5B | $400.3B | $329.5B |
| P/E Ratio → | 24.41 | 18.82 | 25.05 | 11.42 | 26.25 | 21.90 | 28.56 | 25.91 | 23.00 | 297.28 | 19.43 |
| P/S Ratio | 6.88 | 5.36 | 3.97 | 4.71 | 5.88 | 5.81 | 5.09 | 4.77 | 4.32 | 5.02 | 4.47 |
| P/B Ratio | 8.02 | 6.19 | 4.93 | 5.84 | 6.13 | 6.18 | 6.64 | 6.58 | 5.89 | 6.38 | 4.56 |
| P/FCF | 32.90 | 25.61 | 17.76 | 21.99 | 27.38 | 23.15 | 20.82 | 19.66 | 19.00 | 21.58 | 20.67 |
| P/OCF | 26.42 | 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 | 20.43 | 16.09 | 12.37 | 13.23 | 17.77 | 16.83 | 16.38 | 14.37 | 12.97 | 16.31 | 13.37 |
| EV / EBIT | 26.42 | 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 | 3.0% | 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 |
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 24.4x. The historical average is 22.3x. This places it at the 66th percentile of its historical range.
Johnson & Johnson's current EV/EBITDA is 20.4x. 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 24.4x. 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 1.89% 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.
Key Metrics
Top Statement Risk
Talc litigation overhang
Metrics are mathematically derived from official filings.
Margin Expansion Masks Earnings Volatility
Gross margin expanded 670 basis points to 73.1% by 2026Q2, per quarterly filings, while operating margin reached 28.3%, indicating strong pricing power and operational leverage despite volatile net income.
The gross margin improvement from 66.4% in 2025Q1 to 73.1% in 2026Q2 suggests favorable product mix and pricing power, likely driven by pharmaceutical innovations and medtech recovery. Operating margin expansion to 28.3% reflects disciplined cost management, with R&D as a percentage of revenue declining from 23.6% to 14.6% over the period. However, net margin swings (from 50.2% in 2025Q1 to 21.9% in 2026Q2) indicate that one-time items and tax effects obscure core earning power, so investors should focus on gross and operating margins as more stable indicators.
ROIC Recovery After Dip
ROIC improved to 4.7% in 2026Q2 from a low of 3.4% in 2024Q4, according to reported figures, but remains below the 6%+ levels of early 2024, suggesting a gradual recovery in capital efficiency.
The return on invested capital trend shows a trough in 2024Q4 at 3.4%, followed by a recovery to 4.7% by 2026Q2, driven by margin expansion and revenue growth. However, ROIC remains below the 6.0-6.1% seen in 2024Q1-Q2, indicating that the company has not yet fully regained its prior capital efficiency. The increase in goodwill to $48.5B, representing 24% of total assets, suggests that acquisitions have expanded the capital base, potentially diluting returns. Investors should monitor whether ROIC can exceed its historical levels as integration benefits materialize.
Working Capital Cycle Lengthens
Cash conversion cycle extended to 133 days in 2026Q2 from 106 days in 2024Q1, per quarterly data, driven by rising inventory days (199) and slower collections, indicating reduced working capital efficiency.
The cash conversion cycle has lengthened by 27 days over the period, primarily due to DIO increasing from 158 to 199 days, which may reflect inventory build-up for new product launches or supply chain disruptions. DSO remained relatively stable around 66 days, while DPO improved to 132 days, suggesting JNJ is taking longer to pay suppliers, which partially offsets the inventory drag. The net effect is a longer cash cycle, which ties up capital and may pressure free cash flow if not managed. This trend warrants monitoring as it could indicate operational inefficiencies or strategic stockpiling.
Debt Service Comfortable Despite Rising Leverage
Debt-to-equity rose to 0.58 in 2026Q2 from 0.48 in 2024Q1, while interest coverage remained strong at 115.7x, according to financial statements, indicating ample capacity to service debt despite increased borrowing.
JNJ's leverage has increased moderately, with D/E rising from 0.48 to 0.58, and D/EBITDA climbing from 4.16 to 6.84 over the period. However, interest coverage improved dramatically to 115.7x in 2026Q2 from 24.96x in 2024Q1, reflecting both higher operating income and possibly lower interest expense due to debt refinancing. The absolute level of debt ($49B) is manageable relative to equity ($85B) and cash flows, but the rising D/EBITDA trend suggests increasing reliance on debt to fund acquisitions and shareholder returns. Investors should monitor whether leverage continues to climb, as it could reduce financial flexibility.
Liquidity Buffer Adequate but Thin
Current ratio improved to 1.09 in 2026Q2 from 1.01 in 2025Q2, with quick ratio at 0.81, per quarterly data, indicating a modest liquidity cushion that could be strained under severe stress.
The current ratio has hovered near 1.0-1.1 over the past ten quarters, indicating that current assets barely cover current liabilities. The quick ratio, which excludes inventory, is below 1.0 at 0.81, suggesting that JNJ relies on inventory to meet short-term obligations. While the company holds $20.4B in cash, the thin current ratio implies limited buffer against unexpected cash outflows, such as litigation settlements or operational disruptions. Given the talc litigation overhang, investors should assess whether the liquidity position is sufficient to absorb potential one-time payments without impairing operations.
P/E Misleading Due to Earnings Volatility
The trailing P/E of 23.24 is distorted by one-time items that caused net income swings, per reported figures, so investors should use normalized earnings or EV/EBITDA to assess valuation.
JNJ's P/E ratio is commonly used but is misleading because net income has been highly volatile due to litigation charges, tax effects, and other non-recurring items. For example, net margin swung from 50.2% in 2025Q1 to 15.2% in 2024Q4, making trailing earnings an unreliable base. Instead, EV/EBITDA (19.5x) provides a more stable valuation metric, as EBITDA is less affected by non-operating items. Additionally, forward P/E of 21.94 may better reflect ongoing earnings power, but investors should adjust for potential litigation costs. A normalized earnings approach or EV/EBITDA is preferable for JNJ.