BRK.B Relative Valuation
BRK.B's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BRK.B is overvalued; if below, it's undervalued.
Historical Valuation
Berkshire Hathaway Inc (BRK.B) is now in the Fair zone, suggesting that its current forward PE ratio of 23.06 is considered Fairly compared with the five-year average of 22.07. The fair price of Berkshire Hathaway Inc (BRK.B) is between 435.75 to 508.95 according to relative valuation methord.
Relative Value
Fair Zone
435.75-508.95
Current Price：503.23
Fair
22.96
PE
1Y
3Y
5Y
Trailing
Forward
0.00
EV/EBITDA
Berkshire Hathaway Inc. (BRK.B) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 5.79. The thresholds are as follows: Strongly Undervalued below -7.63, Undervalued between -7.63 and -0.92, Fairly Valued between 12.50 and -0.92, Overvalued between 12.50 and 19.21, and Strongly Overvalued above 19.21. The current Forward EV/EBITDA of 0.00 falls within the Historic Trend Line -Fairly Valued range.
0.00
EV/EBIT
Berkshire Hathaway Inc. (BRK.B) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is 37.01. The thresholds are as follows: Strongly Undervalued below -40.37, Undervalued between -40.37 and -1.68, Fairly Valued between 75.70 and -1.68, Overvalued between 75.70 and 114.39, and Strongly Overvalued above 114.39. The current Forward EV/EBIT of 0.00 falls within the Historic Trend Line -Fairly Valued range.
2.76
PS
Berkshire Hathaway Inc. (BRK.B) has a current PS of 2.76. The 5-year average PS is 2.45. The thresholds are as follows: Strongly Undervalued below 1.75, Undervalued between 1.75 and 2.10, Fairly Valued between 2.81 and 2.10, Overvalued between 2.81 and 3.16, and Strongly Overvalued above 3.16. The current Forward PS of 2.76 falls within the Historic Trend Line -Fairly Valued range.
32.83
P/OCF
Berkshire Hathaway Inc. (BRK.B) has a current P/OCF of 32.83. The 5-year average P/OCF is 25.23. The thresholds are as follows: Strongly Undervalued below -38.49, Undervalued between -38.49 and -6.63, Fairly Valued between 57.10 and -6.63, Overvalued between 57.10 and 88.96, and Strongly Overvalued above 88.96. The current Forward P/OCF of 32.83 falls within the Historic Trend Line -Fairly Valued range.
88.28
P/FCF
Berkshire Hathaway Inc. (BRK.B) has a current P/FCF of 88.28. The 5-year average P/FCF is 3.44. The thresholds are as follows: Strongly Undervalued below -30.47, Undervalued between -30.47 and -13.51, Fairly Valued between 20.39 and -13.51, Overvalued between 20.39 and 37.35, and Strongly Overvalued above 37.35. The current Forward P/FCF of 88.28 falls within the Strongly Overvalued range.
Berkshire Hathaway Inc (BRK.B) has a current Price-to-Book (P/B) ratio of 1.56. Compared to its 3-year average P/B ratio of 1.48 , the current P/B ratio is approximately 5.84% higher. Relative to its 5-year average P/B ratio of 1.43, the current P/B ratio is about 9.21% higher. Berkshire Hathaway Inc (BRK.B) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.89%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.40% , the current FCF yield is about -100.00% lower.
1.56
P/B
Median3y
1.48
Median5y
1.43
1.78
FCF Yield
Median3y
2.89
Median5y
3.40
Competitors Valuation Multiple
The average P/S ratio for BRK.B's competitors is 0.00, providing a benchmark for relative valuation. Berkshire Hathaway Inc Corp (BRK.B) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 2.13%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BRK.B increased by 11.02% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 28.47 to 32.50.
The secondary factor is the Revenue Growth, contributed 2.13%to the performance.
Overall, the performance of BRK.B in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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