Berkshire Hathaway Inc (BRK-B) fair value: what the stock is really worth
As of Oct 14, 2026: fair value of Berkshire Hathaway Inc $397, price $526, upside -24.6%, quality 57 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 13, 2026.
How to read this chart
60‑month range $264.00 – $539.80 · fair‑value band $297.59 – $495.99 · the $526.35 price screens above the $396.79 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Oct 13, 2026.
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Berkshire Hathaway Inc., together with its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses.
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The company provides property, casualty, life, accident, and health insurance and reinsurance; operates railroad systems in North America; generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets.
It manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; prefabricated and site-built residential homes, flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services.
In addition, the company provides recreational vehicles, apparel, footwear, toys, jewelry, custom picture framing products, alkaline batteries, logistics services, and professional aviation training and shared aircraft ownership programs; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys.
Further, it distributes televisions and information, and grocery and non-food consumer products; franchises and services quick service restaurants; and distributes electronic components.
Additionally, it retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and floor coverings; watches, home decor and repair services; sells kitchenware; and motorcycle clothing and equipment.
The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.
Stock analysis
Berkshire Hathaway Inc (BRK-B) currently trades at $526.35, while our model-based Fair Value estimate is $396.79, 24.6% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $404.05 per share, and 0 of the 4 models we run sit above the $526.35 price.
Bear case: the Asset-Based group reads lowest at $223.08, and 4 of the 4 models stay below the price. Data coverage for this calculation is high.
Scenario range: $297.59 (bear) to $495.99 (bull), the price of $526.35 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Berkshire Hathaway Inc reported revenue of $371B in FY2025 versus $355B in FY2021, a compound +1.2%/yr. Reported net income was $67.0B in FY2025, compounding −7.1%/yr from FY2021.
Key figures
Market cap $1.1T · P/E ratio 12.7 · P/S ratio 2.28 · EPS (TTM) $40.07 · Net margin 18.0% · Return on equity 12.1% · Return on assets (EBIT) 6.0% · Operating margin 32.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 68 out of 100 (high confidence).
What moves the price
The share trades about 1% below its 52-week high and 13% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −23% fair-value upside, at −25%, BRK-B screens richer than that median.
Fair Value models
Bear$297.59Fair Value $396.79Bull$495.99
Price $526.35 · Upside -24.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($31.62 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+0.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.6%
Start year 2020 (pandemic). Over 10 years: +5.8% a year
Revenue growth 37 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+1.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+1.6%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−1.3% vs 12.3%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.24% → 16%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +11.9% a year for the price.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Durable advantages in organization capital and owner alignment deliver moderate pricing power, yet minimal innovation focus and dependence on capital allocation skills limit resilience.
Main risk: Succession risk threatens the disciplined capital allocation that sustains the insurance float funding investments across sectors.
Berkshire's insurance operations keep supplying a large, low-cost float that has long funded its investments across sectors. Greg Abel has started deploying more of the cash reserves on deals such as the Taylor Morrison acquisition and additional Alphabet shares. With Buffett now fully in the background, will the new leadership maintain the same level of discipline in capital allocation or move toward faster deployment of the reserves?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Insurance - Diversified · 81 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score57 · Above median
Fair Value upside−24.6% · Below median
Profitability
Return on equity (12 months)12.1% · Below median
Return on assets5.5% · Top 25%
Net margin (12 months)22.3% · Top 25%
Operating margin (12 months)32.6% · Top 25%
Growth and dividend
Revenue growth10.0% · Above median
Balance sheet
Debt / equity0.18× · Below median
Valuation Multiplesvs Insurance - Diversified median · lower = cheaper
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Is Berkshire Hathaway Inc (BRK-B) overvalued or undervalued?
As of Oct 13, 2026, our model estimates a fair value of $396.79 versus a price of $526.35, about −25% upside (overvalued).
What is the fair value of BRK-B?
Our model-based fair value for Berkshire Hathaway Inc is $396.79 (as of Oct 13, 2026), built from audited fundamentals. The current price: $526.35.
What is the quality score of BRK-B?
Berkshire Hathaway Inc has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Berkshire Hathaway Inc (BRK-B)?
Our model-based price target is the fair value of $396.79 (as of Oct 13, 2026) from 4 valuation models. Cautious scenario $297.59, optimistic scenario $495.99. It is a calculation from audited fundamentals, not an analyst target.
What is the Berkshire Hathaway Inc stock forecast for 2026?
Our models put fair value at $396.79, about −25% upside versus a price of $526.35 (overvalued). Cautious scenario $297.59, optimistic scenario $495.99. The calculation is refreshed regularly with new filings.
What is the revenue of Berkshire Hathaway Inc (BRK-B)?
Berkshire Hathaway Inc reported trailing-twelve-month revenue of about $385B (latest available figure, as of Oct 13, 2026).
What growth is priced into Berkshire Hathaway Inc (BRK-B)?
For today's price to be fair in a discounted-cash-flow model, Berkshire Hathaway Inc would have to grow free cash flow by +14.6 % per year for five years (discount rate 7.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.6 % per year. As of Oct 13, 2026.
What discount rate (WACC) does the fair value of BRK-B use?
Our models discount Berkshire Hathaway Inc at 7.9 %: a base by market capitalisation (mega), damped by beta 0.60, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Berkshire Hathaway Inc that is +14.6 % per year a year over ten years, using the same discount rate (7.9 %) and the same formula as our fair value.
How much growth has Berkshire Hathaway Inc (BRK-B) delivered so far?
Over the past 5 years revenue at Berkshire Hathaway Inc grew +8.6 % a year. The price currently implies +14.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Berkshire Hathaway Inc (BRK-B) growing?
The median revenue growth in the sector is +9.3 % a year. That is the yardstick for the growth priced into Berkshire Hathaway Inc (+14.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Berkshire Hathaway Inc (BRK-B)?
The free-cash-flow yield on the price is 2.21 %: that much free cash flow Berkshire Hathaway Inc produces per unit of market value. When it exceeds the discount rate of our models (7.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Berkshire Hathaway Inc (BRK-B)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Berkshire Hathaway Inc it is $396.79 per share (as of Oct 13, 2026), against a price of $526.35. It is the blended result of 4 valuation models (cash flow, earnings, asset, dividend).
Is Berkshire Hathaway Inc stock overvalued or undervalued in 2026?
As of Oct 13, 2026, BRK-B trades above its calculated fair value: price $526.35, fair value $396.79, a gap of about −25% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BRK-B?
No. The price is what the market pays today ($526.35); the fair value is what the company's own numbers justify ($396.79). For Berkshire Hathaway Inc the two are $129.56 per share apart. That gap is exactly why we show both numbers side by side.
How much is Berkshire Hathaway Inc worth?
The market values Berkshire Hathaway Inc at about $1.1T (market capitalisation, as of Oct 13, 2026). Per share that is $526.35; our models calculate a fair value of $396.79 per share.
What do the bullish and bearish scenarios say about BRK-B?
Our models span a range for Berkshire Hathaway Inc: cautious scenario $297.59, base $396.79, optimistic $495.99 per share (as of Oct 13, 2026, price $526.35). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BRK-B?
Berkshire Hathaway Inc trades at a price-to-earnings ratio of 12.7 (as of Oct 13, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $396.79 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 25.5 (reported for FY2025: 17.0). Median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, FY2020, FY2025 ex one-offs: 10.9. Other multiples: PEG 10.1, P/B 1.6, P/S 2.9, EV/EBITDA 9.2.
What is the PEG ratio of BRK-B?
The PEG ratio of Berkshire Hathaway Inc is 10.06 (P/E divided by earnings growth, as of Oct 13, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Berkshire Hathaway Inc (BRK-B)?
Balance-sheet figures for Berkshire Hathaway Inc (as of Oct 13, 2026): return on equity 12.1%, debt of 0.18 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is BRK-B from its 52-week high?
Berkshire Hathaway Inc trades at $526.35, about 1% below its 52-week high of $529.42 and 13% above the low of $465.40 (as of Oct 14, 2026). Distance from the high says nothing about value: that is what the fair value of $396.79 is for.
Which stocks are comparable to Berkshire Hathaway Inc?
From the same area (Financial Services) we also value Allianz SE, Zurich Insurance Group, AXA SA, Assicurazioni Generali S.p.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Berkshire Hathaway Inc stock attractive at the current price?
The data as of Oct 13, 2026: price $526.35, calculated fair value $396.79 (−25%), Quality Score 57/100, from 4 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BRK-B calculated?
We run Berkshire Hathaway Inc through 4 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $396.79, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.7 % above its aggregate fair value. Berkshire Hathaway Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Berkshire Hathaway Inc (BRK-B)?
The closing price on Oct 14, 2026 was $526.35. Our model-based fair value is $396.79, about −25% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Berkshire Hathaway Inc right now?
The price sits above even our optimistic bull case ($495.99). The favourable scenario is already priced in. Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Berkshire Hathaway Inc (BRK-B) come from?
Earnings per share at Berkshire Hathaway Inc grew +17.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +8.0 %, EBIT margin −0.3 %, tax rate +1.5 %, residual (interest, one-offs) +7.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Berkshire Hathaway Inc
How large is the market capitalisation of Berkshire Hathaway Inc (BRK-B)?
The market capitalisation of Berkshire Hathaway Inc is $1.1T. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Berkshire Hathaway Inc (BRK-B)?
The price-to-sales ratio of Berkshire Hathaway Inc is 2.28 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Berkshire Hathaway Inc (BRK-B)?
Earnings per share at Berkshire Hathaway Inc are $40.07 (price ÷ EPS = P/E 12.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Berkshire Hathaway Inc (BRK-B)?
The net margin of Berkshire Hathaway Inc is 18.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Berkshire Hathaway Inc (BRK-B)?
The return on equity (ROE) of Berkshire Hathaway Inc is 12.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Berkshire Hathaway Inc (BRK-B)?
On an EBIT basis the return on assets of Berkshire Hathaway Inc is 6.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Berkshire Hathaway Inc (BRK-B)?
The operating margin of Berkshire Hathaway Inc is 32.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Berkshire Hathaway Inc (BRK-B)?
Revenue at Berkshire Hathaway Inc is growing +10.0% versus a year earlier (3y avg +7.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Berkshire Hathaway Inc (BRK-B)?
Earnings per share at Berkshire Hathaway Inc are growing +108% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Berkshire Hathaway Inc (BRK-B) carry?
The net debt of Berkshire Hathaway Inc is $87.1B (fiscal year 2025, ≈ 3.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 13, 2026