Berkshire Hathaway Inc.
BRK-B
$498.23
-1.15%
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 globally by market capitalization, it stands as a unique platform company with a reputation for disciplined capital allocation and a long-term investment horizon. The current investor narrative centers on the company's ability to deploy its substantial cash reserves into accretive acquisitions and share repurchases, while navigating a complex macroeconomic environment characterized by fluctuating interest rates and geopolitical uncertainties. Recent quarterly results show robust operating performance, with revenue growth of 4.4% year-over-year and strong earnings, reinforcing confidence in the conglomerate's diversified business model.…
BRK-B
Berkshire Hathaway Inc.
$498.23
BRK-B 12-Month Price Forecast
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 +9.9% versus the current price.
Average Target
$547.67
0 analysts
Implied Upside
+9.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$510 - $604
Analyst target range
The target price range of $481 to $604 reflects a moderate level of uncertainty, with the high target assuming continued strong operating performance and successful capital deployment, while the low target prices in potential underperformance in insurance underwriting or a broader economic downturn. Institutional ratings data shows UBS has maintained a Buy rating on the stock since at least January 2024, with no recent downgrades or upgrades, indicating stable sentiment. The limited analyst coverage (3 analysts) is typical for a mega-cap stock, but the consistent Buy ratings suggest a positive outlook, though the implied upside is modest relative to the broader market.
Bulls vs Bears: BRK-B Investment Factors
Berkshire Hathaway presents a mixed investment case. On the bullish side, the company demonstrates solid revenue growth, strong operating margins, and a pristine balance sheet with low leverage. The diversified business model provides stability, and analyst sentiment is positive with a Buy consensus. However, the bearish arguments highlight significant underperformance relative to the S&P 500, a high forward PE that suggests expected earnings decline, and limited analyst coverage. The most critical tension is the discrepancy between the trailing and forward PE ratios, which implies that the market is pricing in a potential earnings contraction. If the company can maintain its operating momentum and deploy its cash reserves effectively, the stock could re-rate higher, but if earnings decline materializes, the valuation could compress. Currently, the bull case has slightly stronger evidence given the robust fundamentals, but the forward PE remains a key risk to monitor.
Bullish
- Strong Q1 2026 Revenue Growth: Berkshire Hathaway reported Q1 2026 revenue of $93.675 billion, a 4.4% year-over-year increase from $89.725 billion in Q1 2025, demonstrating consistent demand across its diversified operations.
- Robust Operating Margins: The company's operating margin stood at 15.85% in the latest quarter, with an EBITDA margin of 21.3%, reflecting efficient cost management and strong operational performance across its segments.
- Solid Balance Sheet with Low Leverage: With a debt-to-equity ratio of 0.19 and a current ratio of 6.75, Berkshire maintains a fortress balance sheet, providing ample financial flexibility for acquisitions and share repurchases.
- Positive Analyst Sentiment: All three analysts covering BRK-B rate it a Buy, with an average target price of $531.67, implying a 5.5% upside from the current price of $504.03, indicating a consensus positive outlook.
Bearish
- Underperformance vs. S&P 500: BRK-B has gained only 5.18% over the past year, significantly lagging the S&P 500's 20.37% return, indicating relative weakness and potential investor preference for growth stocks.
- High Forward PE Suggests Earnings Decline: The forward PE of 22.94x is notably higher than the trailing PE of 16.19x, implying that the market expects earnings to decline, which is unusual for a stable conglomerate and could signal headwinds.
- Limited Analyst Coverage: With only 3 analysts covering the stock, there is a lack of broad institutional research, which may lead to less efficient pricing and limited investor attention.
- Negative PEG Ratio: The PEG ratio of -0.65 indicates that earnings growth is expected to be negative, raising concerns about the sustainability of current valuation levels.
BRK-B Technical Analysis
Berkshire Hathaway's stock is currently in a recovery phase, having rebounded from a 52-week low of $464.01 to a current price of $504.03, which represents 93.7% of the 52-week high of $537.74. The 1-year price change of +5.18% indicates a modest uptrend, but the stock has underperformed the S&P 500, which gained 20.37% over the same period, reflecting relative weakness. The price sits near the midpoint of its 52-week range, suggesting a balanced risk-reward profile with room for both upside and downside.
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
+4.4%
Cumulative gain past year
| Period | BRK-B Return | S&P 500 |
|---|---|---|
| 1m | +1.5% | +4.0% |
| 3m | +3.7% | +5.3% |
| 6m | -0.2% | +12.6% |
| 1y | +4.4% | +20.1% |
| ytd | +0.3% | +13.3% |
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BRK-B Fundamental Analysis
Berkshire Hathaway's revenue trajectory remains positive, with the most recent quarter (Q1 2026) reporting revenue of $93.675 billion, a 4.4% year-over-year increase from $89.725 billion in Q1 2025. This growth is driven by strength in the insurance group ($25.312 billion in segment revenue) and manufacturing businesses ($20.672 billion), partially offset by softer performance in other segments. The multi-quarter trend shows consistent revenue expansion, with quarterly revenue ranging from $92.515 billion to $94.972 billion over the past year, indicating stable demand across the conglomerate's diverse 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 primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE stands at 16.19x, while the forward PE is 22.94x, implying that the market expects earnings to decline in the coming year, which is unusual for a company with stable growth. This gap suggests that the forward estimates may be conservative or that the market is pricing in potential headwinds, such as higher catastrophe losses or lower investment gains.
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