Berkshire Hathaway Inc. (Class B)
Berkshire Hathaway Inc., together with its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses. The company provides property, casualty, life, accident, and health insurance and reinsurance; operates railroad systems in North America; generates, transmits, st…
Berkshire Hathaway Inc., together with its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses. The company provides property, casualty, life, accident, and health insurance and reinsurance; operates railroad systems in North America; generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. It manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; prefabricated and site-built residential homes, flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. In addition, the company provides recreational vehicles, apparel, footwear, toys, jewelry, custom picture framing products, alkaline batteries, logistics services, and professional aviation training and shared aircraft ownership programs; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys. Further, it distributes televisions and information, and grocery and non-food consumer products; franchises and services quick service restaurants; and distributes electronic components. Additionally, it retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and floor coverings; watches, home decor and repair services; sells kitchenware; and motorcycle clothing and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.Looks undervalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF is somewhat apart.
Other models: USD 378290.04–1011633.56 (median 694961.80). The recommended value is in line with them.
Why: Berkshire earns across many businesses and pays no dividend; reported free cash flow is used as a rough proxy for owner earnings.
Details and the full model are below.
Market price below modeled range
Uses reported free cash flow from Fiscal year 2025 as a rough owner-earnings proxy, with cash, debt, and shares from reported statements. Base assumptions are 3% growth, 2.4% terminal growth, and 9.6% discount. Low/high cases vary these assumptions by 1–2 percentage points; it is illustrative, not a statistical confidence interval or investment advice. Low confidence: the modelled value is far from the market price, which usually means the model does not capture this company well (for example expected growth well above its history).
Assumptions: growth 3% (limited from 9.72% because the latest annual revenue declined), discount rate 9.60%, terminal growth 2.40%. See a worked example.
Blended growth assumption: 9.7% (sector default 5.4%, own revenue history 16.6%, analyst revenue consensus 8.4%).
Analyst consensus expects revenue growth of 8.4% a year; the growth assumption used is 3.0%.
Adjust assumptions
Why this model: Berkshire earns across many businesses and pays no dividend; reported free cash flow is used as a rough proxy for owner earnings.
Compare models- Recommended: Owner-earnings proxy DCF — USD 388115.97 (+68754.0%)
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EPS-based Gordon proxy
— USD 1011633.56 (+179369.5%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 388115.97 (+68754.0%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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FCFF (steady state)
— USD 378290.04 (+67010.8%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/EBITDA (12x)
— not applicable
Not used: Cannot be computed: EBITDA is missing, zero or negative.
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Fade DCF (10-year growth fade)
— USD 387744.02 (+68688.0%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/Sales (Rule of 40)
— USD 394531.59 (+69892.1%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 288300.03 | 99.8% |
| Base USD 388115.97 | 99.9% |
| Bull USD 567197.58 | 99.9% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
The price implies free-cash-flow decline faster than 15% a year.
How the Owner-earnings proxy DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 7.6% | 8.6% | 9.6% | 10.6% | 11.6% |
|---|---|---|---|---|---|
| -1.0% | 449662.37 | 378176.79 | 326516.66 | 287430.06 | 256818.01 |
| 1.0% | 492111.77 | 413193.16 | 356182.50 | 313065.25 | 279311.42 |
| 3.0% | 537874.37 | 450914.20 | 388115.97 | 340639.69 | 303488.85 |
| 5.0% | 587145.65 | 491498.68 | 422449.52 | 370266.07 | 329447.64 |
| 7.0% | 640128.75 | 535111.55 | 459320.73 | 402061.46 | 357288.93 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 92 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 3 of 4 years profitable | 15 / 20 |
| Cash generation | free cash flow positive in 4 of 4 years | 20 / 20 |
| Growth | revenue +16.6% a year | 20 / 20 |
Peers in Financials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| BRK-B (this company) | USD 563.68 | 99.9% | 0.0 | 0.0 | – | 92 |
| PSH.L Pershing Square Holdings, Ltd. | GBP 38.44 | 68.5% | 3.6 | 0.6 | 1.3% | 76 |
| LRE.L Lancashire Holdings Limited | GBP 6.88 | 45.6% | 7.1 | 1.6 | 3.3% | 76 |
| ACA.PA Credit Agricole S.A. | EUR 15.73 | 36.6% | 6.7 | 0.7 | 7.0% | 78 |
| V Visa Inc. | USD 414.00 | 34.6% | 8.7 | – | 0.2% | 100 |
| PRU.L Prudential plc | GBP 9.24 | 34.3% | 8.0 | 1.6 | 1.9% | 78 |
| AGS.BR ageas SA/NV | EUR 76.95 | 33.0% | 8.1 | 1.5 | 5.0% | 76 |
| NWG.L NatWest Group plc | GBP 5.86 | 30.3% | 8.2 | 1.3 | 5.0% | 88 |
| ACGL Arch Capital Group | USD 108.49 | 30.3% | 8.5 | 1.6 | 0.1% | 100 |
| Peer median | 8.0 | 1.5 | ||||
Annual financial statement
Saved annual report · Fiscal year 2025 · SEC EDGAR annual filings · period ended 31 Dec 2025
| Revenue | USD 371,444,000,000 |
|---|---|
| EBITDA | USD |
| EBIT | USD |
| Net income | USD 66,968,000,000 |
| Free cash flow | USD 25,042,000,000 |
| Capital expenditures | USD -20,927,000,000 |
| Debt | USD |
| Cash | USD |
| Working capital | USD |
| Shares outstanding | 941,481 |