P/E Ratio

The P/E ratio compares a company's stock price to its earnings per share; at 29.1x, investors are paying $29.10 for every $1 of JNJ's annual earnings.

This is slightly below the healthcare sector median of 30.2x, and the 0th percentile rank means JNJ has a lower P/E than every peer in the sector. Year-over-year change is not available, but the ratio rose 6.5% quarter-over-quarter from 27.3x to 29.1x. A P/E below the sector median suggests relative value, but the recent upward trend could indicate growing investor optimism or earnings pressure. The combination of a low percentile rank and a rising multiple may reduce the margin of safety, making the stock less attractive for conservative buyers. This metric supports the overall CAUTIOUS verdict because the rising P/E adds uncertainty even though the absolute level remains below peers.

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