Berkshire Hathaway Stock Current Valuation
| BRK-A Stock | USD 613,420 1,755 0.29% |
Valuation analysis of Berkshire Hathaway helps investors to measure Berkshire Hathaway's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of April 24, 2024, Enterprise Value Over EBITDA is expected to decline to 12.46. In addition to that, Enterprise Value Multiple is expected to decline to 12.46. Fundamental drivers impacting Berkshire Hathaway's valuation include:
Price Book 1.5576 | Enterprise Value 861.6 B | Price Sales 2.3909 | Forward PE 17.9856 | Trailing PE 9.2593 |
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.
Our valuation method for Berkshire Hathaway is useful when determining the fair value of the Berkshire stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Berkshire Hathaway. 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 613420.0 | Real 553658.0 | Target 593296.0 | Hype 615175.0 | Naive 608180.0 |
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, assets, liabilities, 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, news, and other external factors that may influence Berkshire Hathaway's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: Berkshire Hathaway Company Current Valuation Analysis
Berkshire Hathaway's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Berkshire Hathaway Current Valuation | 861.58 B |
Most of Berkshire Hathaway's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Berkshire Hathaway is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Berkshire Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Berkshire Hathaway is extremely important. It helps to project a fair market value of Berkshire Stock properly, considering its historical fundamentals such as Current Valuation. Since Berkshire Hathaway's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Berkshire Hathaway's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Berkshire Hathaway's interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Berkshire Hathaway has a Current Valuation of 861.58 B. This is much higher than that of the Financial Services sector and significantly higher than that of the Financials industry. The current valuation for all United States stocks is significantly lower than that of the firm.
Berkshire Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Berkshire Hathaway's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Berkshire Hathaway could also be used in its relative valuation, which is a method of valuing Berkshire Hathaway by comparing valuation metrics of similar companies.Berkshire Hathaway is currently under evaluation in current valuation category among related companies.
Berkshire Hathaway ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Berkshire Hathaway's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Berkshire Hathaway's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Berkshire Fundamentals
| Return On Equity | 0.18 | |||
| Return On Asset | 0.0763 | |||
| Profit Margin | 0.26 % | |||
| Operating Margin | 0.51 % | |||
| Current Valuation | 861.58 B | |||
| Shares Outstanding | 563.68 K | |||
| Shares Owned By Insiders | 38.96 % | |||
| Shares Owned By Institutions | 20.22 % | |||
| Number Of Shares Shorted | 404 | |||
| Price To Earning | 61.36 X | |||
| Price To Book | 1.56 X | |||
| Price To Sales | 2.39 X | |||
| Revenue | 364.48 B | |||
| Gross Profit | (28.09 B) | |||
| EBITDA | 60.61 B | |||
| Net Income | 96.22 B | |||
| Cash And Equivalents | 35.81 B | |||
| Total Debt | 133.57 B | |||
| Debt To Equity | 0.25 % | |||
| Current Ratio | 1.46 X | |||
| Book Value Per Share | 389,254 X | |||
| Cash Flow From Operations | 49.2 B | |||
| Short Ratio | 0.03 X | |||
| Earnings Per Share | 66,439 X | |||
| Price To Earnings To Growth | 9.68 X | |||
| Target Price | 683617.0 | |||
| Number Of Employees | 396.5 K | |||
| Beta | 0.89 | |||
| Market Capitalization | 882.62 B | |||
| Total Asset | 1.07 T | |||
| Retained Earnings | 607.35 B | |||
| Net Asset | 1.07 T |
About Berkshire Hathaway Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Berkshire Hathaway's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Berkshire Hathaway using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Berkshire Hathaway based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Berkshire Hathaway Investors Sentiment
The influence of Berkshire Hathaway's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Berkshire. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Berkshire Hathaway's public news can be used to forecast risks associated with an investment in Berkshire. The trend in average sentiment can be used to explain how an investor holding Berkshire can time the market purely based on public headlines and social activities around Berkshire Hathaway. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Berkshire Hathaway's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Berkshire Hathaway's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Berkshire Hathaway's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Berkshire Hathaway.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Berkshire Hathaway in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Berkshire Hathaway's short interest history, or implied volatility extrapolated from Berkshire Hathaway options trading.
Pair Trading with Berkshire Hathaway
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Berkshire Hathaway position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Berkshire Hathaway will appreciate offsetting losses from the drop in the long position's value.Moving together with Berkshire Stock
| 0.78 | ESGR | Enstar Group Limited Earnings Call Next Week | PairCorr |
| 0.7 | FIHL | Fidelis Insurance Report 28th of June 2024 | PairCorr |
| 0.76 | AIG | American International Earnings Call Next Week | PairCorr |
| 0.77 | EQH | Axa Equitable Holdings Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Berkshire Hathaway could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Berkshire Hathaway when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Berkshire Hathaway - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Berkshire Hathaway to buy it.
The correlation of Berkshire Hathaway is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Berkshire Hathaway moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Berkshire Hathaway moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Berkshire Hathaway can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Berkshire Hathaway Piotroski F Score and Berkshire Hathaway Altman Z Score analysis. You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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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