Is Johnson & Johnson (JNJ) Undervalued?
Based on the current stock price of $207.63 and a P/E ratio of 20.08,Johnson & Johnson has a PEG ratio of 2.26.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.26, JNJ appears to be potentially overvalued relative to its growth rate of 8.87%.
Based on a PEG ratio of 1.77 (adjusted for dividends).
Compare JNJ vs Competitors
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How we analyzed JNJ
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 20.08and dividing it by the annual growth rate of 8.87%.
PEG = 20.08 (P/E) ÷ 8.87 (Growth) = 2.26
Frequently Asked Questions about JNJ
What is the current PEG Ratio for Johnson & Johnson (JNJ)?+
The current PEG Ratio for Johnson & Johnson is 2.26. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is JNJ stock undervalued right now?+
Based on the PEG ratio of 2.26, Johnson & Johnson appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for JNJ?+
The PEGY ratio for Johnson & Johnson is 1.77. This metric accounts for dividend yield (2.50%), providing a more complete valuation picture.