Johnson & Johnson P/B Ratio
Data as of August 04, 2026
P/B Ratio
7.51
Stock Price
$254.41
Book Value/Share
$33.86
Sector
Pharmaceuticals
How It's Calculated
7.51 = $254.41 ÷ $33.86
What This Means
Johnson & Johnson's P/B ratio of 7.51 is above 6. Asset-light business models and unrecognized intangible assets can make book value a limited denominator; the multiple alone does not determine fair value.
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
The price-to-book ratio compares market price to net asset value per share. For Johnson & Johnson, P/B is especially useful when earnings are volatile or temporarily depressed. In Pharmaceuticals, asset-heavy business models often anchor closer to book value, while asset-light models may trade far above book.
Sector Comparison
Among Pharmaceuticals names on our S&P 100 coverage, Johnson & Johnson's P/B ratio of 7.51 can be compared with peers such as LLY (39.93), MRK (6.01), PFE (1.65). 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.
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Frequently Asked Questions
What does JNJ's price-to-book ratio indicate?
P/B compares share price to book value per share. Johnson & Johnson's P/B of 7.51 reflects how the market prices net assets — especially relevant for asset-heavy Pharmaceuticals business models.
Is 7.51 above or below book value?
A P/B above 1.0 (7.51) means the market values JNJ above accounting book value — often due to brands, growth, or intangible assets.
How does P/B compare within Pharmaceuticals?
Peer P/B levels in Pharmaceuticals (e.g. LLY (39.93), BMY (7.13), MRK (6.01)) provide context; asset-light vs asset-heavy models differ materially.
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