Berkshire Hathaway Inc.
BRK-B
$495.82
-0.21%
Berkshire Hathaway Inc. is a diversified conglomerate headquartered in Omaha, Nebraska, with core operations spanning insurance, freight rail transportation, and utilities, alongside a vast portfolio of manufacturing, service, and retail businesses. As one of the largest companies in the world by market capitalization, it is distinguished by its decentralized management style and the legendary capital allocation of its leadership, historically under Warren Buffett. The current investor narrative centers on the company's ability to compound value through its diverse operating segments, its massive cash pile and investment portfolio, and the ongoing transition as leadership succession plans unfold. Recent financial results show steady revenue growth and robust profitability, but the stock has underperformed the broader market over the past year, prompting debate about its growth prospects and valuation in a higher interest rate environment.…
BRK-B
Berkshire Hathaway Inc.
$495.82
Investment Opinion: Should I buy BRK-B Today?
Rating: Buy. Berkshire Hathaway offers a rare combination of defensive quality and reasonable valuation, with a consensus 'Buy' rating and an average target price of $547.67, implying 10.5% upside. The thesis is that its diversified earnings, superior margins, and fortress balance sheet will drive steady value creation, even if growth is moderate.
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BRK-B 12-Month Price Forecast
The AI assessment leans bullish due to Berkshire's strong profitability, low leverage, and defensive characteristics, which are attractive in an uncertain macro environment. However, the forward PE inversion and relative underperformance temper confidence. The stock appears fairly valued with moderate upside, and the main risk is earnings decline. If revenue growth accelerates above 5% and the forward PE normalizes, the stance would upgrade to high confidence; if earnings decline materializes, it would downgrade to neutral.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Berkshire Hathaway Inc.'s 12-month outlook, with a consensus price target around $547.67 and implied upside of +10.5% versus the current price.
Average Target
$547.67
0 analysts
Implied Upside
+10.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$510 - $604
Analyst target range
With only 3 analysts covering the stock, the consensus recommendation is a 'Buy' with a mean rating of 2.0 (where 1 is Strong Buy and 5 is Sell). The average target price is $547.67, implying an upside of 10.5% from the current price of $495.82. The distribution is entirely bullish, with no Hold or Sell ratings, though the small sample size limits the robustness of this signal. The target range spans from $510.00 to $604.00, with the low target still 2.9% above the current price, indicating that even the most bearish analyst sees limited downside. The high target of $604.00 assumes continued earnings growth and multiple expansion, while the low target may factor in potential headwinds from insurance underwriting cycles or economic slowdown. The wide spread of $94 between low and high targets reflects moderate uncertainty, but the consistent 'Buy' ratings from UBS over the past two years suggest a stable positive outlook.
Bulls vs Bears: BRK-B Investment Factors
Berkshire Hathaway presents a classic value-investing dilemma: solid fundamentals and a defensive profile, but persistent market underperformance. The bull case rests on diversified earnings, superior margins, and a fortress balance sheet, while the bear case highlights slowing growth, a pessimistic forward PE, and relative weakness. Currently, the bull case has stronger evidence—the company's profitability and financial stability are exceptional, and the analyst consensus sees upside. The key tension is whether Berkshire can reaccelerate growth or re-rate higher in a market favoring momentum; if it fails, the stock may continue to lag despite its quality.
Bullish
- Diversified earnings power: Berkshire's Q1 2026 revenue grew 4.4% YoY to $93.675B, with contributions from insurance ($25.3B), manufacturing ($20.7B), and McLane ($11.9B), reducing reliance on any single segment. This diversification underpins stable cash flows across economic cycles.
- Superior profitability vs peers: Net margin of 18.0% and operating margin of 15.9% (Q1 2026) exceed the industry average net margin of 12%, reflecting strong underwriting discipline and operational efficiency. This margin advantage justifies a modest premium to the sector.
- Defensive balance sheet: Debt-to-equity of 0.19 and current ratio of 6.75 indicate minimal leverage and ample liquidity, providing resilience in downturns. The company's massive cash pile (evident from $5.43B quarterly interest income) offers optionality for acquisitions or buybacks.
- Analyst consensus bullish: All 3 covering analysts rate BRK-B a 'Buy' with an average target of $547.67, implying 10.5% upside. Even the low target of $510 is 2.9% above the current price, signaling limited downside risk in the near term.
Bearish
- Underperformance vs market: BRK-B's 1-year return of +1.48% lags the S&P 500's +20.48% by 19 percentage points, indicating persistent relative weakness. This suggests investors are rotating toward higher-growth names, pressuring Berkshire's valuation.
- Forward PE implies earnings decline: The forward PE of 22.34x is 38% higher than the trailing PE of 16.19x, implying the market expects EPS to fall. This unusual inversion may reflect anticipated investment losses or higher expenses, clouding near-term earnings visibility.
- Moderating revenue growth: Revenue growth slowed from 5.3% YoY in Q2 2025 to 4.4% in Q1 2026, and sequential revenue declined from $94.97B in Q3 2025 to $93.675B in Q1 2026. The deceleration suggests mature segments are not accelerating.
- Limited analyst coverage: With only 3 analysts, the bullish consensus is based on a small sample, reducing its statistical significance. The wide target range ($510-$604) reflects uncertainty, and the lack of broader coverage may keep the stock underappreciated.
BRK-B Technical Analysis
Berkshire Hathaway's stock is currently in a range-bound consolidation phase, with the price at $495.82, just 1.04% below its 52-week high of $537.74 and 6.85% above its 52-week low of $464.01. The 1-year price change of +1.48% is significantly lagging the S&P 500's +20.48% gain, indicating clear relative weakness. The stock is trading at 92.2% of its 52-week range, suggesting it is closer to the highs, but the lack of momentum and negative relative strength (-19.0% over 1 year) point to a market that is not rewarding the stock despite its proximity to highs.
Beta
0.61
0.61x market volatility
Max Drawdown
-14.9%
Largest decline past year
52-Week Range
$464-$538
Price range past year
Annual Return
+1.5%
Cumulative gain past year
| Period | BRK-B Return | S&P 500 |
|---|---|---|
| 1m | +1.3% | +3.6% |
| 3m | +1.9% | +2.7% |
| 6m | -0.5% | +11.4% |
| 1y | +1.5% | +18.7% |
| ytd | -0.2% | +12.3% |
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BRK-B Fundamental Analysis
Berkshire Hathaway's revenue trajectory remains steady, with Q1 2026 revenue of $93.675 billion, a 4.4% year-over-year increase from $89.725 billion in Q1 2025. The multi-quarter trend shows consistent growth, with revenue rising from $92.515 billion in Q2 2025 to $94.972 billion in Q3 2025, and $94.232 billion in Q4 2025, though the growth rate has moderated from the 5.3% YoY growth seen in Q2 2025. The company's diverse segments contribute to this stability, with the insurance group generating $25.312 billion, manufacturing businesses $20.672 billion, and McLane Company $11.936 billion in the latest quarter, though no single segment is driving explosive growth.
Quarterly Revenue
$93.7B
2026-03
Revenue YoY Growth
+4.4%
YoY Comparison
Gross Margin
28.8%
Latest Quarter
Free Cash Flow
$23.9B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BRK-B Overvalued?
Given Berkshire Hathaway's positive net income, the PE ratio is the primary valuation metric. The trailing PE is 16.19x, while the forward PE is 22.34x, indicating the market expects earnings to decline in the coming year, which is unusual and may reflect anticipated investment losses or higher expenses. The gap between trailing and forward PE suggests a pessimistic near-term outlook, potentially due to cyclical pressures in insurance or rail. Compared to the industry average PE of 15x (based on available data), Berkshire trades at a slight premium of 8%, which is justified by its superior profitability (net margin of 18.0% vs. industry average of 12%) and lower beta of 0.607, offering defensive characteristics.
PE
16.2x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 4x~35x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are moderate but present. Berkshire's debt-to-equity of 0.19 is low, but its forward PE of 22.34x implies expected earnings decline, which could pressure valuation if realized. The company's net income is volatile due to investment gains/losses—Q1 2025 net income was $4.6B, while Q3 2025 was $30.8B—creating earnings unpredictability. Additionally, the operating margin of 15.9% (Q1 2026) is down from 17.5% in Q3 2025, indicating potential cost pressures. The lack of dividends (yield 0%) means investors rely solely on capital appreciation, increasing sensitivity to growth expectations.