Berkshire Hathaway Valuation
| BRK-B Stock | USD 463.41 3.28 0.71% |
At this time, the firm appears to be overvalued. Berkshire Hathaway shows a prevailing Real Value of $425.93 per share. The current price of the firm is $463.41. Our model approximates the value of Berkshire Hathaway from analyzing the firm fundamentals such as Current Valuation of 1.08 T, profit margin of 0.29 %, and Return On Equity of 0.18 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Berkshire Hathaway's valuation include:
Price Book 1.5773 | Enterprise Value 1.1 T | Price Sales 2.6796 | Forward PE 22.8833 | Trailing PE 9.3031 |
Overvalued
Today
Please note that Berkshire Hathaway's price fluctuation is very steady at this time. Calculation of the real value of Berkshire Hathaway is based on 3 months time horizon. Increasing Berkshire Hathaway's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Berkshire Hathaway is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Berkshire Stock. However, Berkshire Hathaway's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 463.41 | Real 425.93 | Target 390.44 | Hype 462.9 | Naive 466.65 |
The real value of Berkshire Stock, also known as its intrinsic value, is the underlying worth of Berkshire Hathaway Company, which is reflected in its stock price. It is based on Berkshire Hathaway's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Berkshire Hathaway's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Berkshire Hathaway helps investors to forecast how Berkshire stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Berkshire Hathaway more accurately as focusing exclusively on Berkshire Hathaway's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Berkshire Hathaway's intrinsic value based on its ongoing forecasts of Berkshire Hathaway's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Berkshire Hathaway's closest peers. If more than one evaluation category is relevant for Berkshire Hathaway we suggest using both methods to arrive at a better estimate.
Berkshire Hathaway Cash |
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Berkshire Valuation Trend
Comparing Berkshire Hathaway's enterprise value against its market capitalization is a good way to estimate the value of Berkshire Hathaway uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Berkshire Hathaway Total Value Analysis
Berkshire Hathaway is currently estimated to have takeover price of 1.08 T with market capitalization of 991.16 B, debt of 128.27 B, and cash on hands of 35.81 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Berkshire Hathaway fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.08 T | 991.16 B | 128.27 B | 35.81 B |
Berkshire Hathaway Investor Information
About 66.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.58. Some equities with similar Price to Book (P/B) outperform the market in the long run. Berkshire Hathaway recorded earning per share (EPS) of 49.46. The entity had not issued any dividends in recent years. The firm had 50:1 split on the 21st of January 2010. Based on the key measurements obtained from Berkshire Hathaway's financial statements, Berkshire Hathaway is performing exceptionally good at this time. It has a great probability to report excellent financial results in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.13 | 0.132 |
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| Total Cash From Operating Activities | 51.7 B | 49.2 B |
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| Operating Income | 50.5 B | 48.1 B |
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Berkshire Hathaway Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Berkshire Hathaway has an asset utilization ratio of 34.06 percent. This suggests that the Company is making $0.34 for each dollar of assets. An increasing asset utilization means that Berkshire Hathaway is more efficient with each dollar of assets it utilizes for everyday operations.Berkshire Hathaway Ownership Allocation
Berkshire Hathaway holds a total of 1.33 Billion outstanding shares. Over half of Berkshire Hathaway's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Berkshire Hathaway Profitability Analysis
The company reported the revenue of 364.48 B. Net Income was 97.15 B with loss before overhead, payroll, taxes, and interest of (28.09 B).Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Berkshire Hathaway's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Berkshire Hathaway and how it compares across the competition.
About Berkshire Hathaway Valuation
The stock valuation mechanism determines Berkshire Hathaway's current worth on a weekly basis. Our valuation model uses a comparative analysis of Berkshire Hathaway. We calculate exposure to Berkshire Hathaway's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Berkshire Hathaway's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 70.9 B | 116.5 B | |
| Pretax Profit Margin | 0.33 | 0.59 | |
| Operating Profit Margin | 0.13 | 0.13 | |
| Net Profit Margin | 0.26 | 0.14 | |
| Gross Profit Margin | 0.19 | 0.18 |
Berkshire Hathaway Quarterly Retained Earnings |
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Berkshire Hathaway Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 2.2 B | |
| Quarterly Earnings Growth Y O Y | -0.147 | |
| Forward Price Earnings | 22.8833 |
Berkshire Hathaway Current Valuation Indicators
Valuation refers to the process of determining the present value of Berkshire Hathaway and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Berkshire we look at many different elements of the entity such as Berkshire's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Berkshire Hathaway, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Berkshire Hathaway's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Berkshire Hathaway's worth.Complementary Tools for Berkshire Stock analysis
When running Berkshire Hathaway's price analysis, check to measure Berkshire Hathaway's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Berkshire Hathaway is operating at the current time. Most of Berkshire Hathaway's value examination focuses on studying past and present price action to predict the probability of Berkshire Hathaway's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Berkshire Hathaway's price. Additionally, you may evaluate how the addition of Berkshire Hathaway to your portfolios can decrease your overall portfolio volatility.
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