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BRK-B Berkshire Hathaway Inc. - Fundamental Analysis

BULLISH
BRK-B Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Insurance - Diversified
Current Price
$508.94
Analyst Target
$528.67
+3.9% Upside
52W High
$542.07
52W Low
$440.1

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$1.11T
P/E
16.29
ROE
10.2%
Profit margin
18.1%
Debt/Equity
0.18
Dividend yield
N/A

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
88%
Analysis Accuracy
Berkshire Hathaway (BRK-B) trades at $508.94, showing resilience with a 2.5% gain over the past month and 8.8% return over the past year, despite a recent 6M dip. The company’s valuation appears attractive relative to peers, with a P/E of 16.29 well below the sector average of 24.27, while delivering strong profitability (41.1% operating margin) and robust earnings growth of 17.2% YoY. Financial health is exceptional, supported by a debt/equity ratio of just 0.18 and strong liquidity (current ratio of 2.72), though the lack of dividend policy and minimal analyst coverage limit some traditional appeal. Analysts recommend a 'buy' with a $528.67 target, implying ~3.9% upside, while insider selling raises minor concerns but does not override the fundamentally sound profile.

Key Strengths

P/E of 16.29 is significantly below Financial Services sector average of 24.27, offering valuation cushion
Exceptional operating margin of 41.10%, reflecting pricing power and cost discipline across operating subsidiaries
Strong earnings growth of 17.2% YoY, outpacing modest 2.1% revenue growth, indicating margin expansion
Superior financial health with debt/equity of 0.18 and current ratio of 2.72, far exceeding sector leverage norms
Market cap of $1.11T places BRK-B among the most dominant players in financial services, with unparalleled capital flexibility

Key Risks

Forward P/E of 25.35 suggests potential earnings compression or high expectations not yet realized
Insider selling activity: $8.43M in sales over last 6 months with no buys, signaling caution at current levels
Revenue growth of only 2.1% YoY indicates limited top-line expansion despite strong earnings momentum
No dividend policy (0% payout ratio), reducing appeal for income-oriented investors despite sector peers like WFC offering yield
Minimal analyst coverage (only 3 analysts) and lack of consensus metrics (e.g., target high/low) reduce market transparency
AI Fair Value Estimate
Based on comprehensive analysis
$528.67
+3.9% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
70
Strong
Value
92
Future
76
Past
88
Health
95
Dividend
0
AI Verdict
Berkshire Hathaway presents a compelling value proposition within the Financial Services sector, trading below its fair value estimate of $528.67 despite superior profitability and financial strength, with modest growth and insider skepticism offset by strong analyst conviction and long-term price momentum.
Key drivers: Attractive valuation relative to sector and high-quality earnings, Exceptional balance sheet and liquidity positioning, Strong historical profitability and capital allocation track record
Confidence
90%
Value
92/100

BRK-B is materially cheaper than peers like V (P/E 32.42) and MA (P/E 34.83), despite lower revenue growth, underscoring its value appeal in a high-multiple sector.

Positives
  • P/E of 16.29 offers significant discount to sector average of 24.27
  • Price/Sales of 2.98 is reasonable given diversified cash-generating businesses
Watchpoints
  • Forward P/E expansion to 25.35 may reflect near-term earnings uncertainty
  • Price/Book of 0.00 is non-informative due to unique GAAP accounting for insurance and investments
Future
76/100

While earnings are accelerating, revenue growth lags the sector average of 64.31%, and recent price action (6M: -1.0%) reflects tepid sentiment despite long-term 5Y return of +118.3%.

Positives
  • 17.2% YoY earnings growth indicates effective capital deployment and operating leverage
  • Q/Q earnings growth of 17.3% shows sustained momentum into recent quarters
Watchpoints
  • Revenue growth of only 2.1% YoY suggests limited organic expansion across core operations
  • Lack of forward guidance and innovation pipeline transparency limits growth visibility
Past
88/100

Berkshire has delivered stable profitability and strong long-term returns, though recent quarters show no earnings beats and limited short-term momentum (1Y: +8.8%, 6M: -1.0%).

Positives
  • Consistently high operating margin of 41.10% reflects durable business models
  • 5Y share price return of +118.3% demonstrates long-term compounding power
Watchpoints
  • No quarterly earnings surprises reported (0/4 beats), suggesting conservative guidance or lack of earnings volatility
  • Incomplete earnings history data limits trend analysis despite 25 quarters available
Health
95/100

BRK-B’s leverage is far below sector average of 0.88, and its liquidity ratios exceed typical financial services firms, reflecting fortress balance sheet strength despite data gaps.

Positives
  • Debt/equity of 0.18 is exceptionally low, providing significant financial flexibility
  • Current and quick ratios of 2.72 and 2.55 indicate robust short-term liquidity
Watchpoints
  • Missing total debt and cash figures limit full capital structure assessment
  • No free cash flow or operating cash flow data available for trend analysis
Dividend
0/100

Berkshire’s capital allocation strategy prioritizes reinvestment and buybacks over dividends, diverging from typical financial services firms that return capital via yield.

Positives
  • N/A
Watchpoints
  • No dividend yield or payout history, unlike peers such as WFC and SCHW
  • 0% payout ratio reflects capital retention but excludes income investors

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$508.94
Analyst Target
$528.67
Upside/Downside
+3.9%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for BRK-B and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
BRK-B
Berkshire Hathaway Inc.
Primary
+118.3% +64.2% +8.8% -1.0% +2.5% +2.0%
BRK-A
Berkshire Hathaway Inc.
Peer
+118.5% +63.1% +9.0% -0.9% +2.7% +2.1%
V
Visa Inc.
Peer
+60.9% +60.8% +7.8% -9.3% -4.3% -1.6%
MA
Mastercard Incorporated
Peer
+67.4% +61.7% +5.5% -6.2% -3.0% -1.1%
WFC
Wells Fargo & Company
Peer
+283.2% +96.9% +19.4% +12.9% -1.1% -1.1%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
16.29
Forward P/E
25.35
PEG Ratio
N/A
P/B Ratio
0.0
P/S Ratio
2.98
EV/Revenue
-0.68
EV/EBITDA
-2.42
Market Cap
$1.11T

Profitability

Profit margins and return metrics

Profit Margin 18.13%
Operating Margin 41.1%
Gross Margin 24.36%
ROE 10.17%
ROA 4.78%

Growth

Revenue and earnings growth rates

Revenue Growth +2.1%
Earnings Growth +17.2%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +17.3%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.18
Low debt
Current Ratio
2.72
Strong
Quick Ratio
2.55
Excellent
Cash/Share
$265377.0

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-21
$N/A
2025-11-01
$6.25
+9.0% surprise
2025-08-02
$5.17
+2.7% surprise
2025-05-03
$4.47
-5.4% surprise

Financial Services Sector Comparison

Comparing BRK-B against 32 companies in the Financial Services sector (19 bullish, 12 neutral, 1 bearish)
P/E Ratio
16.29
This Stock
vs
22.34
Sector Avg
-27.1% (Discount)
Return on Equity (ROE)
10.17%
This Stock
vs
26.06%
Sector Avg
-61.0% (Below Avg)
Profit Margin
18.13%
This Stock
vs
25.09%
Sector Avg
-27.8% (Weaker)
Debt to Equity
0.18
This Stock
vs
0.75
Sector Avg
-75.9% (Less Debt)
Revenue Growth
2.1%
This Stock
vs
20.1%
Sector Avg
-89.6% (Slower)
Current Ratio
2.72
This Stock
vs
1.41
Sector Avg
+93.0% (Stronger)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
BRK-B
Berkshire Hathaway Inc.
BULLISH $1.11T 16.29 10.2% 18.1% $508.94
BRK-A
Berkshire Hathaway Inc.
NEUTRAL $1.11T 16.29 10.2% 18.1% $763867.0
V
Visa Inc.
NEUTRAL $636.9B 32.42 52.1% 50.1% $330.02
MA
Mastercard Incorporated
BULLISH $490.06B 34.83 184.9% 45.3% $545.73
WFC
Wells Fargo & Company
BULLISH $266.98B 14.01 11.5% 26.6% $85.05

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-10 BUFFETT WARREN E Chief Executive Officer Gift 2,700,000 -
2025-11-10 BUFFETT WARREN E Chief Executive Officer Stock Award 2,700,000 -
2025-11-03 GUYMAN CHARLOTTE M Director Gift 410 -
2025-11-03 GUYMAN CHARLOTTE M Director Stock Award 1,500 -
2025-10-22 JAIN AJIT Officer and Director Gift 32 -
2025-09-26 JAIN AJIT Officer and Director Sale 15,000 $7,500,450
2025-09-24 JAIN AJIT Officer and Director Gift 32 -
2025-08-08 JAIN AJIT Officer and Director Sale 2,000 $929,452
2025-07-14 BUFFETT WARREN E Chief Executive Officer Gift 30 -
2025-06-30 BUFFETT WARREN E Chief Executive Officer Gift 12,358,321 -
2025-06-27 BUFFETT WARREN E Chief Executive Officer Stock Award 12,358,500 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
3 analysts
UBS
2025-11-03
main
Buy Buy
UBS
2025-10-15
main
Buy Buy
UBS
2025-08-04
main
Buy Buy
UBS
2025-07-23
main
Buy Buy
UBS
2025-06-03
main
Buy Buy