Johnson & Johnson researches and develops, manufactures, and sells various products in the health-care field worldwide. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices. Some of its well-known brands include Tylenol-fever, Listerine-bad breath, Splenda-no-calorie sweetener, Neutrogena-skin care, Pepcid-heartburn, Zyrtec - allergy, Motrin-ibuprofen, Sudafed-allergy, and plenty more. The company was founded in 1885 and is based in New Brunswick, New Jersey.
JNJ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Johnson & Johnson. To summarize, we found that Johnson & Johnson ranked in the 26th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 56.17%. The most interesting components of our discounted cash flow analysis for Johnson & Johnson ended up being:
The company has produced more trailing twelve month cash flow than 97.53% of its sector Healthcare.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately just 17.83% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
JNJ's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 41.06% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Johnson & Johnson? See A, IONS, VIVO, HSIC, and RMD.
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