Berkshire Hathaway Valuation
Is BRK/B undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
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 (CHF651.35)
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?
Key metric: As BRK/B is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is BRK/B's PE Ratio? | |
|---|---|
| PE Ratio | 14.4x |
| Earnings | US$67.86b |
| Market Cap | US$974.27b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.2x |
| Enterprise Value/EBITDA | 8.3x |
| PEG Ratio | -0.4x |
Price to Earnings Ratio vs Peers
How does BRK/B's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 22.3x | ||
UBSG UBS Group | 22.4x | 25.6% | CHF 90.0b |
PGHN Partners Group Holding | 33.4x | 14.2% | CHF 32.0b |
INVE A Investor | 4.4x | -55.0% | SEK 910.4b |
BAER Julius Bär Gruppe | 29.1x | 22.4% | CHF 10.9b |
BRK/B Berkshire Hathaway | 14.4x | -33.5% | CHF 974.3b |
Price-To-Earnings vs Peers: BRK/B is good value based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (22.2x).
Price to Earnings Ratio vs Industry
How does BRK/B's PE Ratio compare vs other companies in the European Diversified Financial Industry?
| 7 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 7 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: BRK/B is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the European Diversified Financial industry average (11.2x).
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 14.4x |
| Fair PE Ratio | 18.8x |
Price-To-Earnings vs Fair Ratio: BRK/B is good value based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).
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.
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