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 22.64 is considered Fairly compared with the five-year average of 22.08. The fair price of Berkshire Hathaway Inc (BRK.B) is between 438.50 to 511.96 according to relative valuation methord.
Relative Value
Fair Zone
438.50-511.96
Current Price：496.12
Fair
22.64
PE
1Y
3Y
5Y
0.00
EV/EBITDA
Berkshire Hathaway Inc. (BRK.B) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 5.60. The thresholds are as follows: Strongly Undervalued below -7.83, Undervalued between -7.83 and -1.12, Fairly Valued between 12.31 and -1.12, Overvalued between 12.31 and 19.02, and Strongly Overvalued above 19.02. 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 36.77. The thresholds are as follows: Strongly Undervalued below -41.05, Undervalued between -41.05 and -2.14, Fairly Valued between 75.69 and -2.14, Overvalued between 75.69 and 114.60, and Strongly Overvalued above 114.60. The current Forward EV/EBIT of 0.00 falls within the Historic Trend Line -Fairly Valued range.
2.72
PS
Berkshire Hathaway Inc. (BRK.B) has a current PS of 2.72. The 5-year average PS is 2.47. The thresholds are as follows: Strongly Undervalued below 1.76, Undervalued between 1.76 and 2.11, Fairly Valued between 2.82 and 2.11, Overvalued between 2.82 and 3.17, and Strongly Overvalued above 3.17. The current Forward PS of 2.72 falls within the Historic Trend Line -Fairly Valued range.
32.33
P/OCF
Berkshire Hathaway Inc. (BRK.B) has a current P/OCF of 32.33. The 5-year average P/OCF is 25.33. The thresholds are as follows: Strongly Undervalued below -38.45, Undervalued between -38.45 and -6.56, Fairly Valued between 57.22 and -6.56, Overvalued between 57.22 and 89.11, and Strongly Overvalued above 89.11. The current Forward P/OCF of 32.33 falls within the Historic Trend Line -Fairly Valued range.
86.94
P/FCF
Berkshire Hathaway Inc. (BRK.B) has a current P/FCF of 86.94. The 5-year average P/FCF is 4.95. The thresholds are as follows: Strongly Undervalued below -35.39, Undervalued between -35.39 and -15.22, Fairly Valued between 25.12 and -15.22, Overvalued between 25.12 and 45.29, and Strongly Overvalued above 45.29. The current Forward P/FCF of 86.94 falls within the Strongly Overvalued range.
Berkshire Hathaway Inc (BRK.B) has a current Price-to-Book (P/B) ratio of 1.53. Compared to its 3-year average P/B ratio of 1.47 , the current P/B ratio is approximately 4.12% higher. Relative to its 5-year average P/B ratio of 1.43, the current P/B ratio is about 7.06% higher. Berkshire Hathaway Inc (BRK.B) has a Forward Free Cash Flow (FCF) yield of approximately 1.80%. Compared to its 3-year average FCF yield of 2.85%, the current FCF yield is approximately -36.76% lower. Relative to its 5-year average FCF yield of 3.34% , the current FCF yield is about -45.98% lower.
1.53
P/B
Median3y
1.47
Median5y
1.43
1.80
FCF Yield
Median3y
2.85
Median5y
3.34
Competitors Valuation Multiple
The average P/S ratio for BRK.B's competitors is 1.60, providing a benchmark for relative valuation. Berkshire Hathaway Inc Corp (BRK.B) exhibits a P/S ratio of 2.72, which is 70.22% above the industry average. Given its robust revenue growth of 2.13%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BRK.B increased by 6.48% 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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Frequently Asked Questions
Is Berkshire Hathaway Inc (BRK.B) currently overvalued or undervalued?
Berkshire Hathaway Inc (BRK.B) is now in the Fair zone, suggesting that its current forward PE ratio of 22.64 is considered Fairly compared with the five-year average of 22.08. The fair price of Berkshire Hathaway Inc (BRK.B) is between 438.50 to 511.96 according to relative valuation methord.
What is Berkshire Hathaway Inc (BRK.B) fair value?
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. The fair price of Berkshire Hathaway Inc (BRK.B) is between 438.50 to 511.96 according to relative valuation methord.
How does BRK.B's valuation metrics compare to the industry average?
The average P/S ratio for BRK.B's competitors is 1.60, providing a benchmark for relative valuation. Berkshire Hathaway Inc Corp (BRK.B) exhibits a P/S ratio of 2.72, which is 70.22% above the industry average. Given its robust revenue growth of 2.13%, this premium appears unsustainable.
What is the current P/B ratio for Berkshire Hathaway Inc (BRK.B) as of Jan 07 2026?
As of Jan 07 2026, Berkshire Hathaway Inc (BRK.B) has a P/B ratio of 1.53. This indicates that the market values BRK.B at 1.53 times its book value.
What is the current FCF Yield for Berkshire Hathaway Inc (BRK.B) as of Jan 07 2026?
As of Jan 07 2026, Berkshire Hathaway Inc (BRK.B) has a FCF Yield of 1.80%. This means that for every dollar of Berkshire Hathaway Inc’s market capitalization, the company generates 1.80 cents in free cash flow.
What is the current Forward P/E ratio for Berkshire Hathaway Inc (BRK.B) as of Jan 07 2026?
As of Jan 07 2026, Berkshire Hathaway Inc (BRK.B) has a Forward P/E ratio of 22.64. This means the market is willing to pay $22.64 for every dollar of Berkshire Hathaway Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Berkshire Hathaway Inc (BRK.B) as of Jan 07 2026?
As of Jan 07 2026, Berkshire Hathaway Inc (BRK.B) has a Forward P/S ratio of 2.72. This means the market is valuing BRK.B at $2.72 for every dollar of expected revenue over the next 12 months.