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 lower than the median of its peer group: around 21.00. The company valuation of Berkshire Hathaway Inc. according to these metrics is below 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): 10.69. 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 slightly higher than its historical 5-year average: 19.8. The (current) company valuation of Berkshire Hathaway Inc. is therefore consistent with its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2020P/E NTM
Berkshire Hathaway Inc.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Reinsurance6.6616.0410.69
DJIA18.8818.7717.34
United States of America4.9511.1211.93
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Beta (Ref: DJIA)
Levered betaUnlevered beta
1-Year0.730.77
2-Year0.790.83
3-Year0.830.88
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Stock Perf excl. Dividends (in USD)
BRK.BDJIARel. Perf.
Year-to-Date-12.0%-6.6%-5.5%
1-Week3.7%0.3%3.4%
1-Month11.4%3.2%8.2%
1-Year-1.7%0.7%-2.4%
3-Year11.3%21.1%-9.7%
5-Year40.0%51.5%-11.5%
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International Peers - Berkshire Hathaway Inc.
Company NameCtryMarket
Cap.
last (mUSD)
Berkshire Hathaway Inc.USA484 146
International Peers Median1.06
Union Pacific Corporati...USA116 801
The Sherwin-Williams Co...USA58 376
PPG Industries Inc.USA25 339
Chevron Corp.USA158 338
Exxon Mobil CorporationUSA178 633
GPRV Analysis
Berkshire Hathaway I...
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Berkshire Hathaway Inc.
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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).