BRK.B Valuation

Berkshire Hathaway Inc

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468.910

+4.72(1.017%)1D

Overview
Forecast
Valuation
Earnings

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 23.50 is considered Fairly compared with the five-year average of 22.03. The fair price of Berkshire Hathaway Inc (BRK.B) is between 400.81 to 466.26 according to relative valuation methord.

Relative Value

Fair Zone

400.81-466.26

Current Price：464.19

Fair

23.50

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 6.40. The thresholds are as follows: Strongly Undervalued below -6.87, Undervalued between -6.87 and -0.23, Fairly Valued between 13.03 and -0.23, Overvalued between 13.03 and 19.67, and Strongly Overvalued above 19.67. 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 36.95. The thresholds are as follows: Strongly Undervalued below -38.73, Undervalued between -38.73 and -0.89, Fairly Valued between 74.78 and -0.89, Overvalued between 74.78 and 112.62, and Strongly Overvalued above 112.62. The current Forward EV/EBIT of 0.00 falls within the Historic Trend Line -Fairly Valued range.

2.90

Berkshire Hathaway Inc. (BRK.B) has a current PS of 2.90. The 5-year average PS is 2.41. The thresholds are as follows: Strongly Undervalued below 1.69, Undervalued between 1.69 and 2.05, Fairly Valued between 2.77 and 2.05, Overvalued between 2.77 and 3.13, and Strongly Overvalued above 3.13. The current Forward PS of 2.90 falls within the Overvalued range.

0.00

P/OCF

Berkshire Hathaway Inc. (BRK.B) has a current P/OCF of 0.00. The 5-year average P/OCF is 25.01. The thresholds are as follows: Strongly Undervalued below -37.66, Undervalued between -37.66 and -6.32, Fairly Valued between 56.34 and -6.32, Overvalued between 56.34 and 87.68, and Strongly Overvalued above 87.68. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Berkshire Hathaway Inc. (BRK.B) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Berkshire Hathaway Inc (BRK.B) has a current Price-to-Book (P/B) ratio of 1.69. Compared to its 3-year average P/B ratio of 1.49 , the current P/B ratio is approximately 13.80% higher. Relative to its 5-year average P/B ratio of 1.43, the current P/B ratio is about 18.48% higher. Berkshire Hathaway Inc (BRK.B) has a Forward Free Cash Flow (FCF) yield of approximately 1.09%. Compared to its 3-year average FCF yield of 3.00%, the current FCF yield is approximately -63.75% lower. Relative to its 5-year average FCF yield of 3.57% , the current FCF yield is about -69.55% lower.

1.69

P/B

Median3y

1.49

Median5y

1.43

1.09

FCF Yield

Median3y

3.00

Median5y

3.57

Competitors Valuation Multiple

The average P/S ratio for BRK.B's competitors is 1.87, providing a benchmark for relative valuation. Berkshire Hathaway Inc Corp (BRK.B) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -0.16%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

BRK.B.N

Berkshire Hathaway Inc

Hartford Insurance Group Inc

Performance Decomposition

Market capitalization of BRK.B decreased by 1.47% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.44 to 13.69.

The secondary factor is the Revenue Growth, contributed -0.16%to the performance.

Overall, the performance of BRK.B in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.16%

89.87B → 89.73B

Revenue Growth

-63.52%

14.28 → 5.21

Margin Expansion

62.21%

8.44 → 13.69

P/E Change

-1.47%