Last Price$165.9(1.1%)
Market Cap$398.7B
DCF value
$222.2
Undervalued (DCF value)
33.9%
Discount Rate
6.9%
Long-Term Growth Rate
3.0%
Stock quality
6/10
Good
JNJ DCF Model
Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
| Jan'21 Actual | Jan'22 Actual | Jan'23 Actual | Dec'23 Actual | Dec'24 Actual | Dec'25 Estimate | Dec'26 Estimate | Dec'27 Estimate | Dec'28 Estimate | Dec'29 Estimate | Dec'30 Estimate | Dec'31 Estimate | Dec'32 Estimate | Dec'33 Estimate | Dec'34 Estimate | Dec'35 Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 82,584.0 0.6% | 78,740.0 (4.7%) | 79,990.0 1.6% | 85,159.0 6.5% | 88,821.0 4.3% | 90,101.0 1.4% | 93,639.0 3.9% | 97,101.7 3.7% | 102,032.8 5.1% | 106,444.8 4.3% | 110,812.6 4.1% | 115,115.1 3.9% | 119,330.6 3.7% | 123,437.2 3.4% | 127,412.7 3.2% | 131,235.1 3.0% |
% margin | 19,733.0 20.5% | 20,943.0 26.0% | 21,013.0 29.0% | 23,409.0 27.5% | 22,149.0 22.9% | 19,387.1 21.5% | 20,148.4 21.5% | 20,893.5 21.5% | 21,954.5 21.5% | 22,903.8 21.5% | 23,843.6 21.5% | 24,769.4 21.5% | 25,676.5 21.5% | 26,560.1 21.5% | 27,415.5 21.5% | 28,238.0 21.5% |
NOPAT % effective tax rate | 17,600.3 21.3% | 19,439.3 24.7% | 17,768.6 22.2% | 20,711.0 24.3% | 18,670.1 21.0% | 16,342.0 18.1% | 16,983.7 18.1% | 17,611.8 18.1% | 18,506.1 18.1% | 19,306.3 18.1% | 20,098.6 18.1% | 20,878.9 18.1% | 21,643.5 18.1% | 22,388.3 18.1% | 23,109.4 18.1% | 23,802.7 18.1% |
% of revenue | 7,231.0 8.8% | 7,390.0 9.4% | 6,970.0 8.7% | 7,486.0 8.8% | 7,339.0 8.3% | 7,738.7 8.6% | 8,042.6 8.6% | 8,340.0 8.6% | 8,763.6 8.6% | 9,142.5 8.6% | 9,517.7 8.6% | 9,887.2 8.6% | 10,249.3 8.6% | 10,602.0 8.6% | 10,943.4 8.6% | 11,271.7 8.6% |
% of revenue | (3,347.0) (4.1%) | (3,652.0) (4.6%) | (4,009.0) (5.0%) | (4,543.0) (5.3%) | (4,424.0) (5.0%) | (4,603.4) (5.1%) | (4,784.1) (5.1%) | (4,961.1) (5.1%) | (5,213.0) (5.1%) | (5,438.4) (5.1%) | (5,661.6) (5.1%) | (5,881.4) (5.1%) | (6,096.8) (5.1%) | (6,306.6) (5.1%) | (6,509.7) (5.1%) | (6,705.0) (5.1%) |
% of revenue | 2,690.0 3.3% | (4,238.0) (5.4%) | (4,011.0) (5.0%) | 2,507.0 2.9% | 1,837.0 2.1% | (0.7) (0.0%) | (0.7) (0.0%) | (0.7) (0.0%) | (0.8) (0.0%) | (0.8) (0.0%) | (0.8) (0.0%) | (0.9) (0.0%) | (0.9) (0.0%) | (0.9) (0.0%) | (1.0) (0.0%) | (1.0) (0.0%) |
Free Cash Flow to Firm (FCFF) % of revenue | 21,687.6 26.3% | 18,500.2 23.5% | 18,562.0 23.2% | 26,161.0 30.7% | 21,917.8 24.7% | 19,476.7 21.6% | 20,241.5 21.6% | 20,990.0 21.6% | 22,055.9 21.6% | 23,009.6 21.6% | 23,953.8 21.6% | 24,883.9 21.6% | 25,795.1 21.6% | 26,682.8 21.6% | 27,542.2 21.6% | 28,368.5 21.6% |
% of FCFF used in calculation | 80.3% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||
Discount period | 0.50 | 1.50 | 2.50 | 3.50 | 4.50 | 5.50 | 6.50 | 7.50 | 8.50 | 9.50 | ||||||
Discount factor | 0.97 | 0.90 | 0.85 | 0.79 | 0.74 | 0.69 | 0.65 | 0.61 | 0.57 | 0.53 | ||||||
Discounted FCFF (DFCFF) | 15,122.0 | 18,314.6 | 17,766.5 | 17,464.3 | 17,044.0 | 16,598.7 | 16,130.7 | 15,642.6 | 15,136.9 | 14,616.4 |
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JNJ DCF Value
DCF Value Calculation
as of Mar 11, 2025
Sum of DFCFF
% share of EV
163.8B
30.0%
Terminal Value (TV)
720.4B
Discounted TV
% share of EV
382.3B
70.0%
546.1B
Total Debt
36.6B
534.0B
Shares outstanding
2,403.7M
FX rate
1.0
222.2
33.9% undervalued
Equity Value Bridge
JNJ DCF Financials
Revenue
$88.8B -> $127.4B
3.7% CAGR
Operating Income
$22.1B -> $27.4B
2.2% CAGR
FCFF
$21.9B -> $27.5B
2.3% CAGR
JNJ DCF sensitivity
DCF value
Long-term Terminal growth rate
2.0%
2.5%
3.0%
3.5%
4.0%
WACC
6.0%
$232.0
$232.0
$232.0
$232.0
$232.0
6.5%
$209.0
$226.0
$226.0
$226.0
$226.0
6.9%
$191.0
$206.0
$222.0
$222.0
$222.0
7.5%
$169.0
$180.0
$193.0
$210.0
$216.0
8.0%
$155.0
$163.0
$173.0
$186.0
$202.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
2.0%
2.5%
3.0%
3.5%
4.0%
WACC
6.0%
40.0%
40.0%
40.0%
40.0%
40.0%
6.5%
26.0%
36.0%
36.0%
36.0%
36.0%
6.9%
15.0%
24.0%
34.0%
34.0%
34.0%
7.5%
2.0%
9.0%
16.0%
27.0%
30.0%
8.0%
(7.0%)
(2.0%)
4.0%
12.0%
22.0%
Explore more intrinsic value tools hub for JNJ
Margin of safety
Peter Lynch charts
Ben Graham Fair Value
Earnings Power Value
Relative Value
Earnings growth model
Discount rate
Peter Lynch Fair Value
Intrinsic Value
Reverse DCF
FAQ
What is Johnson & Johnson DCF (discounted cash flow) valuation?
As of Mar 11, 2025, Johnson & Johnson's Discounted Cash Flow (DCF) valuation estimates its share price at $222.2. This suggests it may be undervalued by 33.9% compared to its current price of around $165.9, using a WACC of 6.9% and growth rates of 3.0%.
What is Johnson & Johnson WACC?
As of Mar 11, 2025, Johnson & Johnson's Weighted Average Cost of Capital (WACC) is approximately 6.9%.
What is Johnson & Johnson Enterprise Value?
As of Mar 11, 2025, Johnson & Johnson's Enterprise Value (EV) is approximately $546.1B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.