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Berkshire Hathaway Inc Class A BRK.A

Morningstar Rating
$652,040.00 −10,780.00 (1.63%)
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Company Report

Higher Rates and Improved Equity Markets Continue to Contribute to Berkshire's Valuation Gains

We continue to believe that Berkshire, owing to its diversification and its lower overall risk profile, offers one of the better risk-adjusted return profiles in the financial-services sector (and remains a generally solid candidate for downside protection during market selloffs). We remain impressed by Berkshire's ability in most years to generate high-single- to double-digit growth in book value per share, comfortably above our estimate of its cost of capital.

Price vs Fair Value

BRK.A is trading at a 49% premium.
Price
$652,040.32
Fair Value
$939,475.00
Uncertainty
Low
1-Star Price
$597,237.00
5-Star Price
$272,356.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Book value per share, which is a good proxy for measuring changes in Berkshire's intrinsic value, increased at an estimated 18.3% CAGR during 1965-2023, compared with a 10.2% annualized return for the S&P 500 TR Index.

Bears

Given its size, Berkshire's biggest long-term hurdle will be its ability to consistently find deals that not only add value but are large enough to be meaningful.

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News

Trading Information

Previous Close Price
$662,820.00
Day Range
$651,000.00665,550.00
52-Week Range
$502,000.00741,971.40
Bid/Ask
$630,888.88 / $681,968.56
Market Cap
$936.85 Bil
Volume/Avg
1,861 / 8,460

Key Statistics

Price/Earnings (Normalized)
23.28
Price/Sales
2.30
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.78%

Company Profile

Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the companies that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Large Core
Total Number of Employees
396,500

Competitors

Valuation

Metric
BRK.A
PGR
ALL
Price/Earnings (Normalized)
23.2823.8923.76
Price/Book Value
1.645.502.77
Price/Sales
2.301.900.78
Price/Cash Flow
25.4122.1318.34
Price/Earnings
BRK.A
PGR
ALL

Financial Strength

Metric
BRK.A
PGR
ALL
Quick Ratio
Current Ratio
Interest Coverage
18.8627.544.90
Quick Ratio
No chart available

Profitability

Metric
BRK.A
PGR
ALL
Return on Assets (Normalized)
3.90%6.83%1.46%
Return on Equity (Normalized)
7.49%32.37%10.07%
Return on Invested Capital (Normalized)
6.61%24.07%7.13%
Return on Assets
BRK.A
PGR
ALL
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Insurance - Diversified Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Berkshire Hathaway Inc Class B
BRK.B
VmyzjwlksZht$936.6 Bil
Allianz SE ADR
ALIZY
HlwnbvndJsvv$110.7 Bil
AXA SA ADR
AXAHY
SsgtbczPxk$77.6 Bil
Zurich Insurance Group AG ADR
ZURVY
HphfkrfqcPldqxxj$76.7 Bil
American International Group Inc
AIG
HqnfptxjyQcpv$49.4 Bil
Sun Life Financial Inc
SLF
FscwkpzLchk$28.7 Bil
Aviva PLC ADR
AVVIY
WckkqdnchZnsg$16.6 Bil
Aegon Ltd ADR
AEG
YfvhgwhJlcbc$10.6 Bil
Ageas SA/ NV ADR
AGESY
FcgvsQvnl$8.6 Bil

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