Johnson & Johnson Valued at 52% Below Market Price: GuruFocus Analysis

Johnson & Johnson's stock price has been on a tear in recent times, rising by 30.4% year-to-date and an impressive 52.1% over the past 12 months.

However, despite this stellar performance, our valuation models indicate that JNJ is significantly overvalued at its current price of $265.58.

A two-stage discounted cash flow (DCF) model using earnings-based estimates puts JNJ's intrinsic value at $123.97, representing a margin of safety of -114.2% compared to the current market price.

The DCF free cash flow model also indicates that JNJ is overvalued, with an intrinsic value of $105.26 and a margin of safety of -152.3%.