---
title: Johnson & Johnson (JNJ) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/jnj
ticker: JNJ
as_of: 2026-10-17
sector: Healthcare
industry: Drug Manufacturers - General
---
# Johnson & Johnson (JNJ)

Johnson & Johnson (JNJ) closed at $255.56 on Oct 16, 2026, undervalued by 36% vs its model value of $401.28 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $255.56 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $401.28 |
| Price vs model | undervalued by 36% vs model |
| Range of that model | $230.58 – $839.40 |
| Market value | $615.9B |
| P/E (fiscal 2025) | 23.2 |
| Net margin (fiscal 2025) | 28.5% |
| Free cash flow (fiscal 2025) | $19.7B |
| Dividend yield (trailing twelve months) | 2.07% |
| Beta | 0.23 |
| Cost of capital (WACC) | 6.90% |
| Business classification | Mature & Stable (Revenue declining (~-0% recent), High profitability (28% net margin), Highly cyclical earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Largest companies | #19 | $615.9B | https://sweetvaluelab.com/lists/largest-companies |
| Dividend growth streaks | #2 | 55+ years | https://sweetvaluelab.com/lists/dividend-growth-streaks |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.07% |
| Dividends per share, last 12 months | $5.28 |
| Coverage | — |
| Raised | 55+ years in a row |
| Growth over 5 years | 5.0% a year |
| Latest payment | $1.34, ex-date Aug 25, 2026, paid Sep 8, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 23, 2021 | $4.14 |
| To Aug 22, 2022 | $4.38 |
| To Aug 25, 2023 | $4.64 |
| To Aug 27, 2024 | $4.86 |
| To Aug 26, 2025 | $5.08 |
| Trailing twelve months (to Aug 25, 2026) | $5.28 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $401.28 | $230.58 | $839.40 |
| DCF · Perpetuity growth · 10y | cross check | $443.99 | $261.09 | $935.88 |
| DCF · EBITDA exit · 5y | cross check | $342.45 | $247.85 | $453.94 |
| DCF · EBITDA exit · 10y | cross check | $388.49 | $275.48 | $539.14 |
| P/E · peers | cross check | $241.85 | $148.18 | $282.39 |
| P/E · own history | cross check | $253.09 | $232.08 | $281.66 |
| PEG | sanity check | $112.81 | $112.81 | $112.81 |
| EV/EBITDA · peers | cross check | $278.53 | $220.44 | $355.39 |
| EV/Revenue · peers | cross check | $250.60 | $196.07 | $311.07 |
| Earnings power value | cross check | $93.62 | $74.82 | $122.87 |
| Dividend discount | cross check | $166.38 | $102.04 | $357.24 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 10 open-market sales ($67.8M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 8, 2026 | Pinto Daniel E | Director | Grant / award | 113.098 | $31,250.1 |
| Sep 8, 2026 | Woods Eugene A. | Director | Grant / award | 135.717 | $37,500 |
| Sep 8, 2026 | HEWSON MARILLYN A | Director | Grant / award | 180.956 | $50,000 |
| Sep 2, 2026 | Schmid Timothy | EVP, WW Chair, MedTech | Option/RSU exercise | 11,070 | $1.5M |
| Sep 2, 2026 | Schmid Timothy | EVP, WW Chair, MedTech | Open-market sell | 11,070 | $3.0M |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 13, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/200406/000020040626000189/jnj-20261013.htm |
| Aug 4, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/200406/000020040626000167/jnj-20260804.htm |
| Jul 29, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/200406/000020040626000163/jnj-20260729.htm |
| Jul 28, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/200406/000020040626000155/jnj-20260727.htm |
| Jul 23, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/200406/000020040626000153/jnj-20260628.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Yacktman | 2026-06-30 | 1,259,977 | $320.0M |
| Bridgewater | 2026-06-30 | 669,135 | $169.9M |
| Thomas Gayner | 2026-06-30 | 610,800 | $155.1M |
| Mairs & Power | 2026-06-30 | 423,010 | $107.4M |

15 tracked managers in all.

## About

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.

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Source: https://sweetvaluelab.com/stocks/jnj (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.