Johnson & Johnson PEG Ratio

Data as of June 01, 2026

How It's Calculated

What This Means

Johnson & Johnson's PEG ratio of 2.93 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.

About Johnson & Johnson

Johnson & Johnson (JNJ) operates in the Healthcare sector, specifically in Drug Manufacturers - General. With a market capitalization of about $542.42B, it ranks as a mega-cap stock — one of the largest publicly traded companies.

Shares recently traded near $225.33, within a 52-week range of $149.04 to $251.71 (-10.5% from the high, +51.2% from the low). Beta of 0.26 indicates relatively lower volatility versus the market.

Trailing profit margin is about 21.8%, signaling a solid profit margin for its industry.

Understanding This Metric

The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Johnson & Johnson, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.

Sector Comparison

Among Healthcare names on our S&P 100 coverage, Johnson & Johnson's PEG ratio of 2.93 can be compared with peers such as LLY (1.48), UNH (1.32), MRK (5.52). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Healthcare stocks.

Key Takeaways

• JNJ is grouped in the Healthcare sector for peer comparisons.
• Recent beta of 0.26 suggests lower-than-market price sensitivity.
• Trailing profit margin of 21.8% provides context for how much earnings support the headline multiple.

Related Tools & Guides

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