Johnson & Johnson EV/EBITDA
What is the EV/EBITDA of Johnson & Johnson?
The EV/EBITDA of Johnson & Johnson is 14.31
What is the definition of EV/EBITDA?
EV/EBITDA is enterprise value divided by earnings before interest, tax, depreciation, and amortization. It is a measure of how expensive a stock is and is more frequently valid for comparisons across companies than the price to earnings ratio. It measures the price (in the form of enterprise value) an investor pays for the benefit of the company’s cash flow (in the form of EBITDA).
= enterprise value / EBITDA
Price to earnings ratios are impacted by a company's choice of capital structure - companies which raise money via debt will have lower P/Es (and therefore look cheaper) than companies that raise an equivalent amount of money by issuing shares, even though the two companies might have equivalent enterprise values. A sample case is when a company with debt were to raise money by issuing shares of stock, and then used the money to pay off the debt, this company's P/E ratio would shoot up because of the increased number of shares - although nothing about the fundamental value of the business has changed. EV / EBITDA is unaffected by capital structure as enterprise value includes the value of debt, and EBITDA is available to all investors (debt and equity) as it excludes interest payments on that debt. It is ideal for analysts and potential investors looking to compare companies within the same industry.
EV/EBITDA of companies in the Health Care sector on NYSE compared to Johnson & Johnson
What does Johnson & Johnson do?
Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods.
Companies with ev/ebitda similar to Johnson & Johnson
- Silk Logistics Ltd has EV/EBITDA of 14.30
- New Jersey Resources has EV/EBITDA of 14.30
- Win Hanverky has EV/EBITDA of 14.31
- Royale Manor Hotels and Industries has EV/EBITDA of 14.31
- Zegna has EV/EBITDA of 14.31
- Renishaw Plc has EV/EBITDA of 14.31
- Johnson & Johnson has EV/EBITDA of 14.31
- Coty Inc has EV/EBITDA of 14.31
- Becton, Dickinson and has EV/EBITDA of 14.31
- NVE Corp has EV/EBITDA of 14.32
- Ion Beam Applications SA has EV/EBITDA of 14.32
- Best Mart 360 has EV/EBITDA of 14.32
- Enagás SA has EV/EBITDA of 14.32