Johnson & Johnson (JNJ)
Discount cash flow analysis
Price history
Sensitivity matrix
-1% |
Discount Rate % 0% |
1% |
||
---|---|---|---|---|
-1% | $66.46 | $65.15 | $63.90 | |
Terminal Growth% | 0 | $67.19 | $65.85 | $64.57 |
+1% | $67.93 | $66.56 | $65.25 |
How does a change in discount rate or terminal growth affect valuation?
This table shows the sensitivity of the valuation to two key variables - the discount rate and the terminal growth rate
Valuations and comments
- Valuecruncher created a new valuation of $110.00 (overvalued by 6.74%) - 7 months ago
- 38fr17h9 created a new valuation of $65.85 (overvalued by 0.36%) - almost 6 years ago
- 38fr17h9 created a new valuation of $65.85 (overvalued by 0.36%) - almost 6 years ago
- 38fr17h9 created a new valuation of $81.57 (undervalued by 23.42%) - almost 6 years ago
- 38fr17h9 created a new valuation of $26.21 (overvalued by 60.34%) - almost 6 years ago
- Wyomingkid1 created a new valuation of $104.42 (undervalued by 80.0%) - over 6 years ago
- Wyomingkid1 created a new valuation of $106.05 (undervalued by 82.81%) - over 6 years ago
- Wyomingkid1 created a new valuation of $137.31 (undervalued by 136.7%) - over 6 years ago
- Wyomingkid1 created a new valuation of $3.58 (overvalued by 93.83%) - over 6 years ago
- sailor100 created a new valuation of $82.04 (undervalued by 39.22%) - over 7 years ago
- sailor100 created a new valuation of $74.37 (undervalued by 26.2%) - over 7 years ago
- sailor100 created a new valuation of $191.39 (undervalued by 224.78%) - over 7 years ago
- sailor100 created a new valuation of $84.77 (undervalued by 43.85%) - over 7 years ago
- sailor100 created a new valuation of $45.46 (overvalued by 22.86%) - over 7 years ago
- richday101 created a new valuation of $56.96 (overvalued by 5.93%) - over 7 years ago
- fproudho created a new valuation of $56.78 (overvalued by 6.26%) - over 7 years ago
- oyuna created a new valuation of $56.04 (overvalued by 1.82%) - almost 8 years ago
- swampler created a new valuation of $55.83 (undervalued by 8.6%) - 8 years ago
- swampler created a new valuation of $64.94 (undervalued by 24.53%) - 8 years ago
- SethWellbourne created a new valuation of $37.53 (overvalued by 29.2%) - 8 years ago
- GordonGekko created a new valuation of $63.89 (undervalued by 10.75%) - 8 years ago
- dweis created a new valuation of $59.13 (overvalued by 2.89%) - over 8 years ago
- ffarin created a new valuation of $77.24 (undervalued by 20.05%) - 9 years ago
Comments
The boring details
All amounts in millions | Figures |
Enterprise Value: | 312,432 |
Net Debt (Long-term borrowings less cash): | -10,885 |
Equity Value: | 181,162 |
Number of Shares Outstanding: | 2,741,000,000 |
Calculated value per share: | $65.85 |
Enterprise Value is the present value of the post-tax cash flows for a business into the future.
Where:
- C1, C2, C3 - the cash flow in period 1, 2, 3, ...
- r - the discount rate
To capture the cash flows into the future a terminal value is calculated via a perpetuity calculation -
based on the final years forecast post-tax free cash flow.
Where:
- Cn - the cash flow in the final forecast period.
- LTG - the long-term growth rate
- r - the discount rate
- g - the terminal growth rate
The Capital Asset Pricing Model (CAPM) is used to determine the equity component in the discount rate.
Where:
- rt - the risk free rate
- t - the tax rate
- B - the beta of the company
- MRP - the Market Risk Premium
Valuecruncher uses an estimate of Weighted Average Cost of Capital (WACC) to determine the discount rate in the calculation.