DCF Valuation
Johnson & Johnson (JNJ) DCF Valuation — Is JNJ overvalued?
The estimated DCF fair value of one Johnson & Johnson (JNJ) share is $208.90. Compared to the current market price of $257.59, the stock is overvalued by 18.9%.
DCF fair value
$208.90
Market price
$257.59
Upside / downside
−18.9%
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Johnson & Johnson (JNJ) DCF valuation FAQ
What is the DCF fair value of Johnson & Johnson (JNJ)?
The discounted-cash-flow model estimates the intrinsic fair value of one Johnson & Johnson (JNJ) share at $208.90, based on a 10-year projection of its cash flows converging to Damodaran industry averages.
Is Johnson & Johnson (JNJ) overvalued or undervalued?
Against the current market price of $257.59, the DCF fair value of $208.90 implies JNJ is overvalued by 18.9%.
How is the JNJ DCF value calculated?
It is a 10-year discounted-cash-flow estimate built from Johnson & Johnson's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when Johnson & Johnson files a new quarterly or annual report.
How this JNJ valuation is built
The model projects ten years of Johnson & Johnson's free cash flow to the firm and discounts each year at its own cost of capital. Rather than assuming today's growth and margins persist forever, a moat-scoring step — weighing Johnson & Johnson's ROIC-versus-WACC spread, gross-margin trend, and reinvestment efficiency — decides how many years the business holds its edge before its economics mean-revert toward the Damodaran NYU benchmarks for its industry.
WACC is rebuilt each year from an unlevered-then-relevered beta and the company's evolving capital structure; terminal value uses the Gordon growth model with a reinvestment rate tied to the return earned on new capital (goodwill stripped out to reflect operating efficiency). Every assumption — growth, margins, tax, leverage, convergence timing — is editable, and running the full interactive model adds a 10,000-draw Monte Carlo simulation and WACC-versus-terminal-growth sensitivity heatmaps.
The market price refreshes daily; the DCF fair value updates when Johnson & Johnson files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-06.