JNJ · Intrinsic value
Is Johnson & Johnson (JNJ) overvalued or undervalued?
Johnson & Johnson (JNJ) trades at the delayed market price of $255.56 a share. That price already implies revenue growth of 14.9% a year for 5 years. TickerWorth's fair value is $157.60 a share (62% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is JNJ overvalued?
- Fair value
- $157.60
- Market price
- $255.56
- Downside to fair value
- 38.3%
- Verdict
- 62% above fair value
Reverse DCF: Today's price implies revenue growth of 14.9% a year for 5 years; our model assumes 5.3% a year on average over the same horizon.
What is JNJ's TickerWorth Score?
Expensive vs our estimate — the business scores well
Compared with Healthcare companies in US
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 33 of 100
Cheaper than 33% of Healthcare companies in US
- Price vs worth · 19 of 100
- Quality · 72 of 100
More profitable than 72% of Healthcare companies in US
- Financial health · 54 of 100
Financially stronger than 54% of Healthcare companies in US
- Growth · 35 of 100
Growing faster than 35% of Healthcare companies in US
- Momentum · 62 of 100
Outperformed 62% of Healthcare companies in US over the past year
Confidence: High confidence · Scored
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JNJ DCF valuation: what the price assumes
At a recent price of $255.56, Johnson & Johnson (JNJ) trades 62% above TickerWorth's blended fair value of $157.60 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices JNJ overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -38.3% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values JNJ at about $171.74 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Johnson & Johnson's projected free cash flows at a weighted-average cost of capital (WACC) of 7.0%, with a long-run terminal growth rate of 2.5%. About 81% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 14.9% annual revenue growth for JNJ. Our base case instead compounds to about 5.3% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, JNJ's modeled DCF value ranges from about $110.87 to $382.44 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Johnson & Johnson would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of JNJ's intrinsic value. Figures update as new filings and prices come in.
Every input behind JNJ's DCF
| Input | Value |
|---|---|
| Base-year revenueJohnson & Johnson FY2025 10-K (accession 0000200406-26-000016): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $94,193,000,000 |
| Base EBIT marginJohnson & Johnson FY2014 10-K (accession 0000200406-15-000004): us-gaap:OperatingIncomeLoss 21,590,000,000 / revenue 94,193,000,000 = 22.92%, FY2025. | 22.9% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 7% → 6% → 5% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.40 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesJohnson & Johnson FY2025 10-K (accession 0000200406-26-000016): WeightedAverageNumberOfDilutedSharesOutstanding = 2,429,400,000 shares, FY2025. | 2,429M |
| Market priceDelayed quote · as of 2026-10-19 13:54 UTC | $255.56 |
Change JNJ's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Johnson & Johnson do?
What does it do?
Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of a range of products in the healthcare field worldwide. It operates in two segments, Innovative Medicine and MedTech. It operates in the Drug Manufacturers - General industry (Healthcare sector), headquartered in United States. The company employs roughly 138,200 people.
How does it make money?
The business turns $99.3B in annual revenue into profit. Out of every $100 of sales, about $25 is left as operating profit (operating margin of 25.1%), after a 68% gross margin on the products/services it sells. After all costs, taxes and interest, 16.2% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries modest debt (0.6× equity), and is currently profitable.
JNJ insider trading
We have no recent SEC Form 4 insider filings on file for Johnson & Johnson. Form 4 covers US-listed companies only.
Common questions
What is JNJ's intrinsic value?
TickerWorth's blended fair value for Johnson & Johnson (JNJ) is $157.60 per share, versus a market price of $255.56 (62% above fair value).
Is JNJ overvalued or undervalued?
On our blended fair value JNJ looks overvalued vs fair value at $255.56. This is an educational estimate, not advice.
What discount rate is used for JNJ?
A WACC of 7.0% and a terminal growth rate of 2.5%.
Is Johnson & Johnson stock undervalued?
TickerWorth's fair value for Johnson & Johnson (JNJ) is $157.60 against a market price of $255.56. Our read: 62% above fair value. This is a model estimate, not investment advice.
Johnson & Johnson (JNJ) DCF valuation and fair value
Our fair value for Johnson & Johnson (JNJ) is $157.60, built on a 7.0% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Johnson & Johnson stock?
Today's price implies revenue growth of 14.9% a year for 5 years; our model assumes 5.3% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $255.56. A model estimate, not investment advice.
Johnson & Johnson (JNJ) insider trading
We have no recent SEC Form 4 insider filings on file for Johnson & Johnson (JNJ). Form 4 covers US-listed companies only.
How does JNJ compare with its peers?
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Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.