Johnson & Johnson ($JNJ) filed a 10K annual report today so here's a quick update to my $JNJ cash flow valuation previously posted on January 17. This update incorporates the firm's year-end 2010 data. I believe $JNJ is undervalued now at $60/share and fairly valued at $72/share.
Johnson & Johnson ranks as the world's largest and most diverse health-care company. The company comprises three divisions: pharmaceutical, medical devices and diagnostics, and consumer. While the pharmaceutical division currently represents 35% of total sales, we expect patent losses to reduce this proportion to 30% over the next 10 years, with the remaining divisions picking up equal share.