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Financial Analysis and Forecasting: JNJ as a Case Study

Cheng-Few Lee & Wen‐Chi Yeh

Review of Pacific Basin Financial Markets and Policies2025https://doi.org/10.1142/s0219091525500018article
ABDC B
Weight
0.50

What the paper says

The main purposes of this paper are to show how financial analysis and forecasting can be performed in terms of (i) financial ratio analysis, (ii) policy decision analyses, (iii) beta coefficient, performance measures, and three costs of equity capital, and (iv) simultaneous equation approach to forecast JNJ’s EPS, PPS, and DPS. We first use JNJ’s annual report and price data from Yahoo Finance to calculate financial ratios by using Excel program. Second, we use JNJ, IBM, and S&P 500 monthly returns to calculate beta coefficients, performance measures and cost of equity capital. Third, we use JNJ’s annual report and Yahoo Finance data to forecast EPS, PPS, and DPS in terms of Excel program. In addition, we also use sensitivity analysis to show how growth rate, leverage ratio, and dividend payout ratio can affect the forecast of EPS, PPS, and DPS. There are two potential applications for this paper. First, this paper shows financial analysts how to use accounting data and market rate of return data to determine the fundamental value of individual company and forecast EPS, PPS, and DPS for that company. Second, this paper can also be used by professors of corporate finance and investment analysis to show students how to use real-world financial data to perform financial analysis and forecasting for an individual company.

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Cite this paper

https://doi.org/https://doi.org/10.1142/s0219091525500018

Or copy a formatted citation

@article{cheng-few2025,
  title        = {{Financial Analysis and Forecasting: JNJ as a Case Study}},
  author       = {Cheng-Few Lee & Wen‐Chi Yeh},
  journal      = {Review of Pacific Basin Financial Markets and Policies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1142/s0219091525500018},
}

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Financial Analysis and Forecasting: JNJ as a Case Study

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.