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BRK-B

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.
Market price
USD 571.97
Undervalued by 176768.3%
Base value (EPS-based Gordon proxy) is 176768.3% above the market price · low confidence
Data: Price updated 06 Nov 2026 18:17; FY2025, period ended 31 Dec 2025 from SEC EDGAR (downloaded 48 min ago).
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Verdict

Looks undervalued

PriceUSD 571.97
Fair value range783981.65–1174800.27base 1011633.56
Estimate reliabilityLow
5-year outlook–

5-year outlook: Not shown because confidence is low: Earnings-based DCF is somewhat apart.

Why: Berkshire earns across many businesses and pays no dividend; reported free cash flow is used as a rough proxy for owner earnings.

Start with the price and fair value range, then review the data dates and assumptions below. Estimates are not predictions or investment advice.

EPS-based Gordon proxy

Market price below modeled range

Showing the EPS-based Gordon proxy you selected on the company card, using 3% growth, 2.4% terminal growth and 9.6% discount. The range varies these assumptions slightly; it is illustrative, not 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

Show the recommended model instead

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 (+67756.0%)
  • EPS-based Gordon proxy — USD 1011633.56 (+176768.3%)
    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.
  • DCF (trailing free cash flow) — USD 388115.97 (+67756.0%)
    Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
  • FCFF (steady state) — USD 378290.04 (+66038.1%)
    Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
  • EV/EBITDA (12x) — not applicable
    Not used: Cannot be computed: EBITDA is missing, zero or negative.
  • Fade DCF (10-year growth fade) — USD 387744.02 (+67691.0%)
    Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
  • EV/Sales (Rule of 40) — USD 394531.59 (+68877.7%)
    Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
Illustrative range / share USD 783981.65–1174800.27
Base scenario / share USD 1011633.56
Margin of safety (share of value) Cheap even in the bear case
Bear USD 783981.6599.9%
Base USD 1011633.5699.9%
Bull USD 1174800.27100.0%

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.

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

6 months price change: +20.47% · USD 572.33 · Market data through 05 Nov 2026 ; dashed line is today’s model base value (USD 1011633.56). The fair value is today’s estimate, not what the model said in the past.

Saved price history is current through 05 Nov 2026; last refreshed 06 Nov 2026 18:14 (51 minutes ago).

07 May 2026Range USD 470.29 – 579.0905 Nov 2026

Latest news

Headlines provided by EODHD. Articles may mention multiple companies and are not investment recommendations.

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.

Profitability3 of 4 years profitable15 / 20
Cash generationfree cash flow positive in 4 of 4 years20 / 20
Growthrevenue +16.6% a year20 / 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.

CompanyPriceMargin of safetyP/EP/BYieldQuality
BRK-B (this company) USD 571.97 99.9% 0.0 0.0 – 92
PSH.L Pershing Square Holdings, Ltd. GBP 38.66 68.4% 3.7 0.6 1.3% 76
LRE.L Lancashire Holdings Limited GBP 6.86 45.8% 7.1 1.6 3.3% 76
ACA.PA Credit Agricole S.A. EUR 15.84 36.1% 6.8 0.7 6.9% 78
PRU.L Prudential plc GBP 9.23 34.4% 8.0 1.6 1.9% 78
V Visa Inc. USD 422.59 33.3% 8.9 – 0.2% 100
AGS.BR ageas SA/NV EUR 77.50 32.6% 8.1 1.5 5.0% 76
NWG.L NatWest Group plc GBP 5.87 30.2% 8.2 1.3 5.0% 88
SYF Synchrony Financial USD 74.07 29.9% 7.2 1.4 2.1% 100
Peer median 7.6 1.4
Sector Financials
Exchange NYSE
Currency USD

Annual financial statement

Saved annual report · Fiscal year 2025 · SEC EDGAR annual filings · period ended 31 Dec 2025

RevenueUSD 371,444,000,000
EBITDAUSD
EBITUSD
Net incomeUSD 66,968,000,000
Free cash flowUSD 25,042,000,000
Capital expendituresUSD -20,927,000,000
DebtUSD
CashUSD
Working capitalUSD
Shares outstanding941,481