Berkshire Hathaway Inc.

United States of America Country flag United States of America
Sector: Reinsurance
Ticker: BRK.B
Factsheet Factsheet

Market multiple valuation of Berkshire Hathaway Inc. ( BRK.B | USA)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Berkshire Hathaway Inc. is higher than the median of its peer group: around 20.00. The company valuation of Berkshire Hathaway Inc. according to these metrics is above the market valuation of its peer group.
The P/Earnings NTM ratio of Berkshire Hathaway Inc. is significantly higher than the average of its sector (Reinsurance): 10.05. The company valuation of Berkshire Hathaway Inc. according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of Berkshire Hathaway Inc. is higher than its historical 5-year average: 20.0. The (current) company valuation of Berkshire Hathaway Inc. is therefore above its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2021P/E NTM
Berkshire Hathaway Inc.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Reinsurance8.7010.1710.05
DJIA21.1120.4620.68
United States of America5.1514.0414.21
More...
Beta (Ref: DJIA)
Levered betaUnlevered beta
1-Year0.750.79
2-Year0.770.81
3-Year0.830.87
More...
Stock Perf excl. Dividends (in USD)
BRK.BDJIARel. Perf.
Year-to-Date0.4%1.3%-0.8%
1-Week-0.2%0.6%-0.8%
1-Month5.0%3.3%1.7%
1-Year1.5%6.2%-4.7%
3-Year7.8%18.2%-10.4%
5-Year83.3%92.6%-9.3%
More...
International Peers - Berkshire Hathaway Inc.
Company NameCtryMarket
Cap.
last (mUSD)
Berkshire Hathaway Inc.USA546 939
International Peers Median1.04
Union Pacific Corporati...USA139 491
The Sherwin-Williams Co...USA66 589
PPG Industries Inc.USA32 549
Chevron Corp.USA176 585
Exxon Mobil CorporationUSA201 687
GPRV Analysis
Berkshire Hathaway I...
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
More...
Net Sales Chart
More...
Quotes Chart

1-Year Rebased Stock Chart

  • Berkshire Hathaway Inc.
  • DJIA
More...

Did you know ?

Multiples charts provide an effective way to quickly analyze a company's valuation over a period of time, and compare it against the valuation of another company, a personal list, or a market index.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).