Berkshire Hathaway Inc.
BRK-B
$513.14
+0.31%
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 world's largest companies by market capitalization, it is distinguished by its decentralized management structure and the enduring influence of its legendary chairman, Warren Buffett. The current investor narrative centers on the company's ability to compound value through disciplined capital allocation, its massive cash pile, and the ongoing transition as Buffett's successor, Greg Abel, prepares to take the helm. Recent attention has focused on Berkshire's robust operating performance, its significant equity portfolio, and its strategic moves in a volatile market environment.…
BRK-B
Berkshire Hathaway Inc.
$513.14
Investment Opinion: Should I buy BRK-B Today?
Based on the analysis, BRK-B is rated a Hold. The stock trades at $511.54, near its 52-week high of $516.85, with a trailing PE of 16.19x and a forward PE of 23.71x. Analysts have a consensus Buy rating with an average target of $525.33, implying modest upside of 2.7%. The company's revenue growth of 4.4% YoY and strong margins support a stable outlook, but the elevated forward valuation and underperformance vs. the S&P 500 warrant caution.
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BRK-B 12-Month Price Forecast
The AI model assesses BRK-B as neutral over the next 12 months. The company's fundamentals are solid, but the valuation is not compelling, and growth is limited. The stock is likely to trade in a range, with upside dependent on successful capital deployment and downside protected by its diversified earnings. A upgrade to bullish would require evidence of accelerating growth or a more attractive valuation, while a downgrade would be triggered by deteriorating insurance results or a significant market downturn.
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 $525.33 and implied upside of +2.4% versus the current price.
Average Target
$525.33
0 analysts
Implied Upside
+2.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$481 - $585
Analyst target range
The target price range spans from a low of $481.00 to a high of $585.00, indicating a wide spread of 21.6% between the most bearish and bullish outlooks. The high target assumes continued strong operating performance and potential multiple expansion, while the low target reflects concerns about insurance cycle downturns or broader market corrections. The narrow analyst count and consistent 'Buy' ratings from UBS suggest a stable, high-conviction view, though the wide range highlights uncertainty in the near-term earnings trajectory.
Bulls vs Bears: BRK-B Investment Factors
Berkshire Hathaway presents a balanced risk/reward profile. The bull case rests on its diversified operations, strong margins, and fortress balance sheet, which provide resilience and long-term compounding potential. The bear case highlights its underperformance relative to the S&P 500, elevated forward valuation, and cyclical insurance exposure. Currently, the evidence slightly favors the bull case given the company's consistent profitability and low leverage, but the key tension lies in whether Berkshire can accelerate growth or maintain its premium valuation as leadership transitions. If the company can deploy its massive cash pile effectively or if insurance markets remain favorable, the stock could re-rate higher; otherwise, it may continue to lag the broader market.
Bullish
- Diversified revenue streams: Berkshire's Q1 2026 revenue reached $93.675 billion, up 4.4% YoY, driven by strength across insurance, manufacturing, and energy. This diversification reduces reliance on any single sector, providing stability in varied economic conditions.
- Strong profitability metrics: The company reported a net margin of 18.03% and an operating margin of 15.85% in the latest quarter, reflecting efficient cost management and robust pricing power across its businesses.
- Conservative balance sheet: With a debt-to-equity ratio of only 0.19 and a current ratio of 6.75, Berkshire maintains exceptional financial flexibility. This allows it to weather downturns and seize acquisition opportunities.
- Analyst consensus Buy: All 3 analysts rate BRK-B a Buy, with an average target price of $525.33, implying ~2.7% upside from the current price of $511.54. The high target of $585 suggests potential for 14.4% upside.
Bearish
- Underperformance vs. S&P 500: Over the past year, BRK-B gained 8.40% while the S&P 500 rose 18.19%, underperforming by nearly 10 percentage points. This relative weakness may persist if the market continues favoring high-growth tech names.
- Elevated forward valuation: The forward PE of 23.71x is well above the trailing PE of 16.19x, implying the market expects a significant earnings decline. If earnings fail to recover, the stock could face multiple compression.
- Concentration in insurance cycle: Despite diversification, insurance remains a core segment, and the industry is cyclical. A downturn in underwriting results or catastrophic losses could pressure earnings and the stock.
- Succession uncertainty: Warren Buffett's eventual departure introduces leadership risk. While Greg Abel is named successor, his ability to replicate Buffett's capital allocation acumen remains unproven, which could weigh on sentiment.
BRK-B Technical Analysis
Berkshire Hathaway's stock is currently in a well-defined uptrend, with the price at $511.54, up 8.40% over the past year. The stock is trading near the upper end of its 52-week range, at approximately 98.9% of the high of $516.85, indicating strong momentum and investor confidence. This positioning near the highs suggests the market is rewarding the company's consistent performance, though it also raises the risk of short-term overextension.
Beta
0.61
0.61x market volatility
Max Drawdown
-14.9%
Largest decline past year
52-Week Range
$455-$521
Price range past year
Annual Return
+8.5%
Cumulative gain past year
| Period | BRK-B Return | S&P 500 |
|---|---|---|
| 1m | +1.1% | +1.7% |
| 3m | +10.2% | +4.7% |
| 6m | +1.8% | +10.4% |
| 1y | +8.5% | +21.9% |
| ytd | +3.3% | +11.1% |
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BRK-B Fundamental Analysis
Berkshire Hathaway's revenue trajectory remains solid, with the most recent quarter (Q1 2026) reporting revenue of $93.675 billion, a 4.4% year-over-year increase. This growth is driven by strength across its diverse segments, including insurance, manufacturing, and energy, with the insurance group contributing $25.312 billion in revenue. The multi-quarter trend shows consistent revenue expansion, with Q4 2025 revenue of $94.232 billion and Q3 2025 revenue of $94.972 billion, indicating stable demand across its operations.
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 price-to-earnings (PE) ratio is the most appropriate valuation metric. The trailing PE stands at 16.19x, while the forward PE is 23.71x, reflecting the market's expectation of lower near-term earnings due to potential investment losses or cyclical factors. The gap between trailing and forward PE suggests investors are pricing in a temporary earnings dip, but the long-term growth outlook remains intact.
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
Financially, Berkshire's debt-to-equity ratio of 0.19 is conservative, but its forward PE of 23.71x implies an expected earnings decline, which could lead to multiple compression if not realized. The company's net margin of 18.03% is healthy, yet its reliance on insurance for a significant portion of earnings exposes it to underwriting cycles and catastrophe losses. Additionally, with a payout ratio of 0% and no dividend, investors rely solely on capital appreciation, which may not appeal to income-focused shareholders. The current ratio of 6.75 indicates ample liquidity, but the large cash pile (over $300 billion) could become a drag on returns if not deployed efficiently.
FAQ
The key risks include: 1) Insurance cycle risk - a downturn in underwriting or a major catastrophe could hurt earnings; 2) Valuation risk - the forward PE of 23.71x may compress if earnings disappoint; 3) Leadership transition risk - uncertainty around Warren Buffett's successor could impact sentiment; 4) Market risk - with a beta of 0.61, the stock is less volatile but still exposed to broad market downturns. The most severe risk is a combination of these factors, which could drive the stock down to the 52-week low of $455.19, a potential 11% downside from current levels.
The 12-month forecast for BRK-B is moderately positive. The base case, with a 50% probability, sees the stock trading around $525, in line with the analyst average target. The bull case, with a 25% probability, could push the stock to $585, while the bear case, also 25% probability, could see it fall to $455. The most likely scenario is steady, unspectacular growth, with the stock remaining range-bound. Key factors to watch include revenue growth, insurance results, and any major acquisitions.
BRK-B's trailing PE of 16.19x is below the broader market, but the forward PE of 23.71x is elevated, indicating the market expects a temporary earnings dip. Compared to its own history, the stock is trading near the higher end of its valuation range, suggesting it is fairly valued to slightly overvalued. The price-to-book ratio of 1.51x is reasonable for a company with strong returns on equity. Overall, the market is pricing in stable but not spectacular growth, and the stock appears fairly valued relative to its fundamentals.
BRK-B is a reasonable buy for long-term investors seeking a defensive, diversified investment. With a trailing PE of 16.19x and a low beta of 0.61, it offers stability, but the forward PE of 23.71x suggests near-term earnings headwinds. Analysts have a Buy rating with an average target of $525.33, implying modest upside. However, the stock has underperformed the S&P 500 over the past year, so it may not be ideal for those seeking high growth. It is best suited for investors who value capital preservation and are willing to hold through market cycles.
BRK-B is better suited for long-term investment. The company's diversified operations, strong balance sheet, and consistent profitability make it a reliable compounder over time. With a beta of 0.61, it offers lower volatility, which is attractive for long-term holders. However, its modest growth rate and lack of dividends mean it may not provide significant short-term trading opportunities. A minimum holding period of 3-5 years is recommended to fully benefit from the company's capital allocation and earnings growth.