Company Description: Johnson & Johnson is a leader in the pharmaceutical, medical device and consumer products industries.
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
JNJ is trading at a premium to all four valuations above. The stock is trading at a 47.4% premium to its calculated fair value of $58.16. JNJ did not earn any Stars in this section.
Well the way the Magical Mystery Tour has been going wouldn't it be safe to say a majority of stocks are trading above their fair value????
I'm selling tomorrow based on your astute research. Should I buy back after JNJ tanks?