Berkshire Hathaway Inc
NYSE:BRK.A
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P/B
Price to Book (P/B) ratio compares a company`s market value to its book value. It shows how much investors are paying for each dollar of net assets on the balance sheet.
Price to Book (P/B) ratio compares a company`s market value to its book value. It shows how much investors are paying for each dollar of net assets on the balance sheet.
Valuation Scenarios
If P/B returns to its 3-Year Average (1.5), the stock would be worth $755 322.83 (6% upside from current price).
| Scenario | P/B Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 1.4 | $715 585.03 |
0%
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| 3-Year Average | 1.5 | $755 322.83 |
+6%
|
| 5-Year Average | 1.5 | $726 859.76 |
+2%
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| Industry Average | 1.6 | $780 400.16 |
+9%
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| Country Average | 2.5 | $1 249 759.88 |
+75%
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Forward P/B
Today’s price vs future total equity
Peer Comparison
| Market Cap | P/B | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
1T USD | 1.4 | 15.4 | |
| SE |
|
Investor AB
STO:INVE B
|
1.1T SEK | 1.2 | 7.3 | |
| ZA |
R
|
Remgro Ltd
JSE:REM
|
107B ZAR | 0.9 | 22.2 | |
| SE |
|
Industrivarden AB
STO:INDU A
|
208.7B SEK | 1 | 5.2 | |
| MC |
|
HAL Trust
AEX:HAL
|
15.4B EUR | 1 | 9.6 | |
| NL |
|
Exor NV
AEX:EXO
|
13.4B EUR | 0.4 | -3.6 | |
| SE |
|
L E Lundbergforetagen AB (publ)
STO:LUND B
|
131.6B SEK | 1 | 10.9 | |
| IN |
|
Bajaj Holdings and Investment Ltd
NSE:BAJAJHLDNG
|
1.2T INR | 1.7 | 13.1 | |
| BE |
|
Groep Brussel Lambert NV
XBRU:GBLB
|
9.6B EUR | 0.8 | -15.4 | |
| BE |
|
Sofina SA
XBRU:SOF
|
7.7B EUR | 0.7 | 71.2 | |
| SA |
|
Kingdom Holding Company SJSC
SAU:4280
|
29.6B SAR | 0.5 | 13.8 |
Market Distribution
| Min | 0 |
| 30th Percentile | 1.5 |
| Median | 2.5 |
| 70th Percentile | 4.8 |
| Max | 147 580.5 |
Other Multiples
Berkshire Hathaway Inc
Glance View
Berkshire Hathaway Inc. began its journey as a humble textile manufacturing company in the early 19th century. However, a pivotal transformation occurred when Warren Buffett took control in 1965 and turned it into a powerhouse of investment and conglomerate empire. The key to Berkshire's meteoric rise has been Buffett's unique investment philosophy where he focuses on the intrinsic value of companies, buying undervalued businesses with strong fundamentals and reliable management. Today, rather than textiles, Berkshire stands as a microcosm of the American economy with its diverse range of holdings and operating businesses spanning from insurance, railroads, utilities, to consumer goods, and fintech. The heart of Berkshire Hathaway's operations revolves around its vast portfolio of wholly owned subsidiaries and significant minority stakes in publicly traded stocks. Its insurance operations, led by entities such as GEICO and Berkshire Hathaway Reinsurance, act as a financial cornerstone, generating substantial premium float that can be invested to compound returns over time. Simultaneously, companies like BNSF Railway and Berkshire Hathaway Energy provide steady, predictable cash flows, aiding in funding further acquisitions and investments. Meanwhile, the equity investments in stalwarts like Apple provide substantial capital gains and dividends. This intricate symbiosis of varied businesses not only fuels Berkshire's financial growth but also encapsulates an ethos of patience and value investment that has captivated investors globally.
