Berkshire Hathaway Inc.

BMV:BRKB * Stock Report

Market Cap: Mex$20.6t

Berkshire Hathaway Valuation

Is BRKB * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 BRKB * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BRKB * (MX$9583) is trading below our estimate of fair value (MX$10468.17)

Significantly Below Fair Value: BRKB * is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BRKB *?

Key metric: As BRKB * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BRKB *. This is calculated by dividing BRKB *'s market cap by their current earnings.
What is BRKB *'s PE Ratio?
PE Ratio9.5x
EarningsUS$106.88b
Market CapUS$1.02t

Price to Earnings Ratio vs Peers

How does BRKB *'s PE Ratio compare to its peers?

The above table shows the PE ratio for BRKB * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
INVE A Investor
4.4x-55.0%SEK 910.4b
EXO Exor
1.2x-87.4%€20.3b
V Visa
31.4x9.8%US$606.8b
MA Mastercard
38.9x12.2%US$479.0b
BRKB * Berkshire Hathaway
9.5x-41.6%Mex$1.0t

Price-To-Earnings vs Peers: BRKB * is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

How does BRKB *'s PE Ratio compare vs other companies in the South American Diversified Financial Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies5PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BRKB * is expensive based on its Price-To-Earnings Ratio (9.5x) compared to the South American Diversified Financial industry average (8.6x).

Price to Earnings Ratio vs Fair Ratio

What is BRKB *'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.

BRKB * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio9.2x

Price-To-Earnings vs Fair Ratio: BRKB * is expensive based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (9.2x).

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.

Discover undervalued companies

International Money Express

US$649.0m

Operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia.

IMXI *

US$430.00

7D

0%

1Y

n/a

3i Group

UK£33.0b

A private equity firm specializing in mature companies, growth capital, middle markets, infrastructure, and management leveraged buyouts and buy-ins.

III N

UK£905.30

7D

0%

1Y

110.5%

Western Union

US$3.7b

Provides money movement and payment services worldwide.

WU *

US$222.00

7D

0%

1Y

n/a