Johnson & Johnson (JNJ)

DCF Valuation · Healthcare · Drug Manufacturers - General

Valuation as at 2026-08-14 · see also the S&P 500 Most Undervalued screen

About Johnson & Johnson

Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of a range of products in the healthcare field worldwide. It operates in two segments, Innovative Medicine and MedTech. The Innovative Medicine segment offers products for various therapeutic areas, such as oncology, immunology, neuroscience, pulmonary hypertension, infectious diseases, and cardiovascular and metabolism distributed through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Johnson & Johnson JNJ

Healthcare · Drug Manufacturers - General

Price
$262.08
Market Cap
$631.59B
Free Cash Flow
$16.89B
Beta
0.23
P/E (TTM)
30.3x
52-Week Range
$173.33–$274.90

Johnson & Johnson's price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-08-14

Share price · last 2 years

$262.08 +58% vs 2024-08
S&P 500 $165.86$152.15$152.75$206.92$229.85$262.08 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per quarter

$2.27 -1% vs Q2 '25
$2.29$2.12$2.10$2.14$2.27Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow Per quarter

$7.29B +194% vs Q2 '25
$2.48B$8.00B$5.47B$1.47B$7.29BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share Per quarter

$1.32 +2% vs Q2 '25
$1.29$1.29$1.28$1.28$1.32Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Value investing scale · Buffett · Dalio · Graham

Partial Fit
12 / 20 combined score

See the full Buffett, Dalio & Graham breakdown for JNJ →

Intrinsic value estimate · 5-year forecast

BEAR
$145.64
vs current $262.08
-44.4% ❌ Overvalued
BASE
$207.56
vs current $262.08
-20.8% ❌ Overvalued
BULL
$323.58
vs current $262.08
+23.5% ✅ Undervalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$16.89B
Reported free cash flow (Yahoo)
Risk-free rate
4.68% ● LIVE
Live 10-yr govt bond
Beta
0.23
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.28%
Synthetic rating AAA, ICR 26.4x
Tax rate
25.00%
Estimated default
Capital structure
E 93% / D 7%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth1.4%2.9%4.3%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)6.81%5.81%4.81%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.68% + 0.23 × 5.50% = 5.95% · WACC = weighted by 93%/7% capital structure

These numbers come from running Johnson & Johnson's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or JNJ's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with JNJ →

More S&P 500 stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Johnson & Johnson (JNJ) undervalued?

The Base-case DCF estimates intrinsic value at $207.56 vs a price of $262.08 on 2026-08-14 — a -20.8% margin, so the Base case reads overvalued. This is a mechanical output, not advice.