DCF Tool

JNJ

Johnson & Johnson – Pharmaceutical Preparation Manufacturing
Johnson & Johnson believes good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 130 years, Johnson & Johnson has aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based healthcare company, Johnson & Johnson is committed to using its reach and size for good. Johnson & Johnson strives to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. Johnson & Johnson is blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.
Analysis Results
Intrinsic Value $249.96
Latest Price $163.36
Relative Value 35% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 21.0 20.0
2023 21.9 19.9
2024 22.8 19.7
2025 23.8 19.6
2026 24.8 19.5
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 745 billion. This corresponds to a present value of 558 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 98.7 billion. Adding in the terminal value gives a total present value of 657 billion.

There are presently 2.63 billion outstanding shares, so the intrinsic value per share is 249.96.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 60,979,000,000
Current Cash 31,608,000,000
Current Liabilities 45,226,000,000
Current Debt 3,766,000,000
Non-Cash Working Capital (NCWC) -12,089,000,000
Change in NCWC 1,721,000,000
EBIT 24,547,000,000
Tax Provision 1,898,000,000
Depreciation and Amortization 7,390,000,000
Capital Expenditure -3,652,000,000
Unlevered Free Cash Flow 27,960,416,666
Current Assets 51,237,000,000
Current Cash 25,185,000,000
Current Liabilities 42,493,000,000
Current Debt 2,631,000,000
Non-Cash Working Capital (NCWC) -13,810,000,000
Change in NCWC -5,035,000,000
EBIT 19,914,000,000
Tax Provision 1,783,000,000
Depreciation and Amortization 7,231,000,000
Capital Expenditure -3,347,000,000
Unlevered Free Cash Flow 16,610,689,761
Current Assets 45,274,000,000
Current Cash 19,287,000,000
Current Liabilities 35,964,000,000
Current Debt 1,202,000,000
Non-Cash Working Capital (NCWC) -8,775,000,000
Change in NCWC -6,687,000,000
EBIT 20,970,000,000
Tax Provision 2,209,000,000
Depreciation and Amortization 7,009,000,000
Capital Expenditure -3,498,000,000
Unlevered Free Cash Flow 15,120,712,257
Current Assets 46,033,000,000
Current Cash 19,687,000,000
Current Liabilities 31,230,000,000
Current Debt 2,796,000,000
Non-Cash Working Capital (NCWC) -2,088,000,000
Change in NCWC -249,000,000
EBIT 21,175,000,000
Tax Provision 2,702,000,000
Depreciation and Amortization 6,929,000,000
Capital Expenditure -3,670,000,000
Unlevered Free Cash Flow 21,006,220,623
Current Assets 43,088,000,000
Current Cash 18,296,000,000
Current Liabilities 30,537,000,000
Current Debt 3,906,000,000
Non-Cash Working Capital (NCWC) -1,839,000,000
Change in NCWC -3,361,000,000
EBIT 19,122,000,000
Tax Provision 16,373,000,000
Depreciation and Amortization 5,642,000,000
Capital Expenditure -3,279,000,000
Unlevered Free Cash Flow 408,586,318
Current Assets 65,032,000,000
Current Cash 41,907,000,000
Current Liabilities 26,287,000,000
Current Debt 4,684,000,000
Non-Cash Working Capital (NCWC) 1,522,000,000
Change in NCWC 431,000,000
EBIT 21,165,000,000
Tax Provision 3,263,000,000
Depreciation and Amortization 3,754,000,000
Capital Expenditure -3,226,000,000
Unlevered Free Cash Flow 18,636,579,154
Current Assets 60,210,000,000
Current Cash 38,376,000,000
Current Liabilities 27,747,000,000
Current Debt 7,004,000,000
Non-Cash Working Capital (NCWC) 1,091,000,000
Change in NCWC -3,684,000,000
EBIT 18,289,000,000
Tax Provision 3,787,000,000
Depreciation and Amortization 3,746,000,000
Capital Expenditure -3,463,000,000
Unlevered Free Cash Flow 11,279,933,579
Current Assets 59,311,000,000
Current Cash 33,089,000,000
Current Liabilities 25,085,000,000
Current Debt 3,638,000,000
Non-Cash Working Capital (NCWC) 4,775,000,000
Change in NCWC -1,603,000,000
EBIT 21,137,000,000
Tax Provision 4,240,000,000
Depreciation and Amortization 3,895,000,000
Capital Expenditure -3,714,000,000
Unlevered Free Cash Flow 15,356,643,729
Current Assets 56,407,000,000
Current Cash 29,206,000,000
Current Liabilities 25,675,000,000
Current Debt 4,852,000,000
Non-Cash Working Capital (NCWC) 6,378,000,000
Change in NCWC 937,000,000
EBIT 18,957,000,000
Tax Provision 1,640,000,000
Depreciation and Amortization 4,104,000,000
Capital Expenditure -3,595,000,000
Unlevered Free Cash Flow 18,393,467,325
Current Assets 46,116,000,000
Current Cash 21,089,000,000
Current Liabilities 24,262,000,000
Current Debt 4,676,000,000
Non-Cash Working Capital (NCWC) 5,441,000,000
Change in NCWC -461,000,000
EBIT 17,032,000,000
Tax Provision 3,261,000,000
Depreciation and Amortization 3,666,000,000
Capital Expenditure -2,934,000,000
Unlevered Free Cash Flow 13,270,959,927

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