Johnson & Johnson (NYSE: JNJ) is a favorite of long-term investors everywhere, and it's no surprise why. Thanks to its diversified business, steady dividend payout, and an ultra-lengthy history of profitable operation, the stock is at home in most retirement portfolios.

As a result of that popularity, this stalwart just might be pricier than most investors realize. Let's analyze its valuation and find out if you are getting a deal when buying the stock right now.

With a price-to-earnings (P/E) ratio of 33, J&J's stock is on the pricey side in comparison to the pharma industry's average P/E of 23, as well as in comparison to the entire market's average P/E of 25. But whether it's overvalued is a bigger question. Hype surrounding new products, acquisitions, revenue models, or company leadership can often cause valuations to inflate temporarily. Take a look at this chart:

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Source Fool.com