Equity research Johnson & Johnson - 135 years of worldwide impact

• Autor(a) principal: Silva, Diana Patrícia Campos da
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/156864
• topic: Valuation; Forecasting; Regulation; Finance; R&D; Covid-19 impact; Innovation process; Health care industry; Pharmaceutical industry; Patents; Medical devices; Drugs; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

In the context of the Field Lab – Equity Research, this report was prepared by Diana Patrícia Campos da Silva and Marta Soares Condeço, two students of the master’s in finance at Nova School of Business and Economics (“Nova SBE”) with the aim to evaluate Johnson & Johnson’s intrinsic value by analyzing the economy, this specific industry and the company itself. After the macro and micro analysis, the valuation model resulted in a share price of $225.6 which allowed the conclusion that J&J is trading its shares “at a discount” meaning that the fair value is lower than the value found through this valuation model. Finally, to corroborate this outcome, it was computed a relative valuation and a sensitivity and scenario analysis to comprehend how sensitive the model is if variations occur in the assumptions considered. We believe this to be a fair valuation which contemplates all the factors internal and external to the company.