Berkshire Hathaway Valuation

Q: What is the Fair Price of BRK/B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BRK/B (CHF267.44) is trading below our estimate of [[fair value]] (CHF639.03)

Is BRK/B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BRK/B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BRK/B (CHF267.44) is trading below our estimate of fair value (CHF639.03)

Significantly Below Fair Value: BRK/B is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BRK/B?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BRK/B. This is calculated by dividing BRK/B's market cap by their current preferred multiple.
What is BRK/B's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$1.00t

BRK/B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	8.5x
PEG Ratio	-0.7x

Price to Earnings Ratio vs Peers

How does BRK/B's PE Ratio compare to its peers?

The above table shows the PE ratio for BRK/B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.4x
UBSG UBS Group	41.4x	33.5%	CHF 83.5b
PGHN Partners Group Holding	31.7x	13.4%	CHF 31.8b
INVE A Investor	5.2x	-51.4%	SEK 936.6b
BAER Julius Bär Gruppe	27.3x	21.9%	CHF 10.2b
BRK/B Berkshire Hathaway	14.8x	-20.0%	CHF 1.0t

Price-To-Earnings vs Peers: BRK/B is good value based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (26.4x).

Price to Earnings Ratio vs Industry

How does BRK/B's PE Ratio compare vs other companies in the European Diversified Financial Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	-6.7%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	-6.7%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: BRK/B is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the European Diversified Financial industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is BRK/B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BRK/B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.8x
Fair PE Ratio	12.9x

Price-To-Earnings vs Fair Ratio: BRK/B is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.