Johnson & Johnson EV/EBITDA
Data as of August 04, 2026
EV/EBITDA
20.24
Enterprise Value
$658.83B
EBITDA (TTM)
$32.55B
Sector
Pharmaceuticals
How It's Calculated
20.24 = $658.83B ÷ $32.55B
What This Means
Johnson & Johnson's EV/EBITDA of 20.2 is elevated, which can reflect growth expectations, scarce assets, or cyclical EBITDA.
About Johnson & Johnson
Johnson & Johnson (JNJ) operates in the Pharmaceuticals sector, specifically in Pharmaceuticals. With a market capitalization of about $617.78B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $254.41, within a 52-week range of $164.23 to $274.90 (-7.5% from the high, +54.9% from the low). Beta of 0.23 indicates relatively lower volatility versus the market.
Trailing profit margin is about 21.5%, signaling a solid profit margin for its industry.
Understanding This Metric
EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For Johnson & Johnson, the ratio should be read with growth, capex needs, and cycle position in Pharmaceuticals. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions — especially when EBITDA is depressed or boosted by one-time items.
Using This Number in Practice
Near 20.24x EV/EBITDA, Johnson & Johnson (JNJ) carries an elevated EV/EBITDA multiple that may embed growth expectations or scarcity within its peer set. Enterprise value of about $658.83B and EBITDA near $32.55B form the ratio — adjust for one-time items before treating the headline multiple as comparable.
Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the JNJ metrics hub for related valuation pages.
Sector Comparison
Among Pharmaceuticals names on our S&P 100 coverage, Johnson & Johnson's EV/EBITDA of 20.24 can be compared with peers such as LLY (31.82), MRK (24.45), PFE (14.12). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Pharmaceuticals stocks.
Key Takeaways
- JNJ is grouped in the Pharmaceuticals sector for peer comparisons.
- Recent beta of 0.23 suggests lower-than-market price sensitivity.
- Trailing profit margin of 21.5% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for JNJ.
Learn the full workflow
Compare PE with PB, PEG, EV/EBITDA, and market cap in one structured path.
Open the Stock Valuation hub →Other JNJ Metrics
Frequently Asked Questions
What is JNJ's EV/EBITDA?
EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. Johnson & Johnson's ratio is about 20.24 — common for comparing leveraged companies in Pharmaceuticals.
Is 20.24 high or low vs peers?
Among Pharmaceuticals peers (e.g. LLY (31.82), MRK (24.45), PFE (14.12)), JNJ's 20.24 should be read with growth, capex, and debt levels.
When is EV/EBITDA misleading?
EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.
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