Berkshire Hathaway Valuation
| BRKB Stock | MXN 9,715 28.64 0.29% |
At this time, the firm appears to be overvalued. Berkshire Hathaway shows a prevailing Real Value of 7944.28 per share. The current price of the firm is 9715.0. Our model approximates the value of Berkshire Hathaway from analyzing the firm fundamentals such as Current Valuation of 15.09 T, return on equity of -0.001, and insignificant Profit Margin as well as examining its technical indicators and probability of bankruptcy.
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.
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 9715.0 | Real 7944.28 | Hype 9743.64 | Naive 9996.59 |
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 Total Value Analysis
Berkshire Hathaway is currently anticipated to have takeover price of 15.09 T with market capitalization of 12.87 T, debt of 111.91 B, and cash on hands of 144.06 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Berkshire Hathaway fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
15.09 T | 12.87 T | 111.91 B | 144.06 B |
Berkshire Hathaway Investor Information
About 66.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.5. Some equities with similar Price to Book (P/B) outperform the market in the long run. Berkshire Hathaway recorded earning per share (EPS) of 102.72. The entity had not issued any dividends in recent years. The firm had 50:1 split on the 21st of January 2010. Based on the key measurements obtained from Berkshire Hathaway's financial statements, Berkshire Hathaway is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Berkshire Hathaway Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of Berkshire suggests not a very effective usage of assets in November.Berkshire Hathaway Ownership Allocation
Berkshire Hathaway holds a total of 1.3 Billion outstanding shares. Over half of Berkshire Hathaway's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Berkshire Hathaway. Please watch out for any change in the institutional holdings of Berkshire Hathaway as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Berkshire Hathaway Profitability Analysis
The company reported the revenue of 354.64 B. Net Income was 89.8 B with profit before overhead, payroll, taxes, and interest of 114.86 B.About Berkshire Hathaway Valuation
Our relative valuation model uses a comparative analysis of Berkshire Hathaway. We calculate exposure to Berkshire Hathaway's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Berkshire Hathaway's related companies.Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska. BERKSHIRE HATHAWAY operates under InsuranceDiversified classification in Mexico and is traded on Mexico Stock Exchange. It employs 360000 people.
8 Steps to conduct Berkshire Hathaway's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Berkshire Hathaway's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Berkshire Hathaway's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Berkshire Hathaway's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Berkshire Hathaway's revenue streams: Identify Berkshire Hathaway's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Berkshire Hathaway's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Berkshire Hathaway's growth potential: Evaluate Berkshire Hathaway's management, business model, and growth potential.
- Determine Berkshire Hathaway's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Berkshire Hathaway's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional 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.