Berkshire Hathaway Inc Stock Probability Of Bankruptcy
BERKSHIRE HATHAWAY's threat of distress is under 9% at the present time. It has tiny chance of undergoing some form of financial crisis in the near future. Chance of distress shows the probability of financial torment over the next two years of operations under current economic and market conditions. All items used in analyzing the odds of distress are taken from the BERKSHIRE balance sheet, as well as cash flow and income statements available from the company's most recent filings. Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
BERKSHIRE |
BERKSHIRE HATHAWAY INC Company chance of distress Analysis
BERKSHIRE HATHAWAY's Probability Of Bankruptcy is a relative measure of the likelihood of financial distress. For stocks, the Probability Of Bankruptcy is the normalized value of Z-Score. For funds and ETFs, it is derived from a multi-factor model developed by Macroaxis. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100, indicating the firm's actual probability it will be financially distressed in the next 2 fiscal years.
More About Probability Of Bankruptcy | All Equity Analysis
Probability Of Bankruptcy | = | Normalized | | Z-Score |
Current BERKSHIRE HATHAWAY Probability Of Bankruptcy | Less than 9% |
Most of BERKSHIRE HATHAWAY's fundamental indicators, such as Probability Of Bankruptcy, 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 INC is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Our calculation of BERKSHIRE HATHAWAY probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures. To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting BERKSHIRE HATHAWAY odds of financial distress. These include financial statement analysis, different types of price predictions, earning estimates, analysis consensus, and basic intrinsic valuation. Please use the options below to get a better understanding of different measures that drive the calculation of BERKSHIRE HATHAWAY INC financial health.
Is BERKSHIRE HATHAWAY's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of BERKSHIRE HATHAWAY. If investors know BERKSHIRE will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about BERKSHIRE HATHAWAY listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of BERKSHIRE HATHAWAY INC is measured differently than its book value, which is the value of BERKSHIRE that is recorded on the company's balance sheet. Investors also form their own opinion of BERKSHIRE HATHAWAY's value that differs from its market value or its book value, called intrinsic value, which is BERKSHIRE HATHAWAY's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because BERKSHIRE HATHAWAY's market value can be influenced by many factors that don't directly affect BERKSHIRE HATHAWAY's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between BERKSHIRE HATHAWAY's value and its price as these two are different measures arrived at by different means. Investors typically determine if BERKSHIRE HATHAWAY is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BERKSHIRE HATHAWAY's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors taken into account include analysis of liquidity, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
CompetitionBased on the latest financial disclosure, BERKSHIRE HATHAWAY INC has a Probability Of Bankruptcy of 9.0%. This is 81.97% lower than that of the Financial Services sector and 81.53% lower than that of the Insurance - Diversified industry. The probability of bankruptcy for all United States stocks is 77.4% higher than that of the company.
BERKSHIRE Probability Of Bankruptcy 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 Probability Of Bankruptcy 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 probability of bankruptcy category among related companies.
BERKSHIRE Fundamentals
| Return On Equity | 0.22 | ||||
| Return On Asset | 0.11 | ||||
| Profit Margin | 0.27 % | ||||
| Current Valuation | 171.76 B | ||||
| Shares Outstanding | 448.21 M | ||||
| Price To Earning | 12.17 X | ||||
| Price To Book | 1.35 X | ||||
| Price To Sales | 0.43 X | ||||
| Revenue | 60.7 B | ||||
| Gross Profit | 14.15 B | ||||
| EBITDA | 11.55 B | ||||
| Net Income | 6.77 B | ||||
| Cash And Equivalents | 18.65 B | ||||
| Cash Per Share | 23.17 X | ||||
| Total Debt | 24.29 B | ||||
| Debt To Equity | 1.23 % | ||||
| Book Value Per Share | 150.67 X | ||||
| Cash Flow From Operations | 9.04 B | ||||
| Earnings Per Share | 13.20 X | ||||
| Number Of Employees | 13 | ||||
| Market Capitalization | 171.41 B | ||||
| Total Asset | 198.73 B | ||||
| Retained Earnings | 322.6 B | ||||
| Z Score | 5.6 |
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.The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft 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 Microsoft - 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 Microsoft to buy it.
The correlation of Microsoft 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 Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft 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 Microsoft 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 Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Tools for BERKSHIRE Stock
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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