Research / Stock / JNJ

JNJ

JOHNSON & JOHNSON

FY2025Mkt cap 658.2B

273.14

+0.10 +0.04%

close 2026-08-25

Assumptions

FCF growth rate

1.8%

Market is pricing 1.8%— you agree

Actually grew -0.6%/yrFCF, 2021–2025 — the market is pricing 2.4pts FASTER than history

Projection years

10 yrs

Terminal growth

3.00%

Discount rate (WACC)

5.79%

5.8% derived for this company beta 0.30 (1254d vs the S&P 500) · cost of equity 6.0% = 4.7% risk-free + 0.30 × 4.5% premium · 6% debt at 2.3%, taxed at 18% beta 0.16 clamped to 0.30

Fair value DCF model

$272.00

-0.4%

At the market's assumptions

Current price $273.14Enterprise value 655.5B

Bear $175.95 (-3.2% growth)Bull $417.99 (6.8%)

market $273.14

Today's market price is inside the range · band = your growth ±5pts, same model · the market itself prices 1.8%

Y10

Present value of each projected year, Y1–Y10

24% the 10 forecast years76% terminal value

Over three quarters of this valuation sits beyond the forecast horizon, in a single assumption about growth forever. Lengthening the projection or lowering terminal growth moves that share.

Same industry · SIC 2834 · trailing P/E for context

LLYP/E 541.16T ABBVP/E 113470.0B MRKP/E 21386.8B ABTP/E 31201.8B PFEP/E 21162.5B VRTXP/E 36140.4Bthis P/E: 25

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Assumptions

Fair valuei DCF model

Same industryi · SIC 2834 · trailing P/E for context

Assumptions

Fair valuei DCF model

Same industryi · SIC 2834 · trailing P/E for context

Fair value DCF model

Same industry · SIC 2834 · trailing P/E for context

Fair value DCF model

Same industry · SIC 2834 · trailing P/E for context