Company Overview
Berkshire Hathaway Inc. is a major player in the financial services sector, primarily operating in the United States. The company boasts a diverse portfolio of subsidiaries across various industries, including insurance, utilities, and manufacturing, contributing to its extensive revenue streams. With a market capitalization of approximately $1.08 trillion, Berkshire Hathaway's diversified business model ensures a significant market presence.
Analysis of recent data
FundamentalsBerkshire Hathaway's recent financial performance is marked by substantial revenue of $202,334,000,000 (u_usd), with a year-over-year growth rate of 28.45%. The net income of $89,561,000,000 underscores its profitability.
The company's Gross Margin stands at 17.71%, while the Operating Margin is 14.31%, indicating efficient cost management. However, the absence of EBIT data limits a deeper analysis of operating efficiency.
With a low Beta of 0.41, Berkshire Hathaway exhibits reduced volatility compared to the broader market, suggesting stability. The Return on Equity (ROE) is 10.11%, reflecting solid returns on shareholder investments.
Valuation
DCF / MultiplesThe valuation of Berkshire Hathaway, based on a current price of $502.67, appears reasonable when compared to the DCF fair value range. The estimated fair value spans from $410.67 in a bear scenario to $1,029.44 in a bull scenario, with a base case of $665.99.
This suggests that the market price reflects moderate expectations of future growth and profitability. The company's PE ratio of 16.04 implies that the market is pricing in continued earnings stability and potential growth.
Conclusion
TakeawayBerkshire Hathaway's stock seems reasonably priced today. The market expects stable growth and profitability. The biggest risk is any unforeseen downturn in its diverse business segments.