Berkshire Hathaway Inc.
BRK-B
$510.37
+0.66%
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 led by a long-term value-investing philosophy, with a reputation for disciplined capital allocation and a fortress-like balance sheet. The current investor narrative centers on the company's ability to compound value through its diverse operating segments, its massive cash reserves, and the ongoing transition in leadership as Warren Buffett's legacy continues to shape strategic decisions. Recent attention has focused on the company's robust insurance underwriting performance, its significant equity portfolio, and its consistent share buyback program, which signal confidence in intrinsic value growth.…
BRK-B
Berkshire Hathaway Inc.
$510.37
Investment Opinion: Should I buy BRK-B Today?
Rating: Hold. Berkshire Hathaway is a high-quality company with a strong balance sheet and consistent cash flow, but its current valuation and growth prospects do not offer a compelling margin of safety. The average analyst target of $547.67 implies an 8.2% upside, which is modest, and the lack of a strong buy consensus suggests limited near-term catalysts. The stock is suitable for long-term investors seeking stability and diversification, but not for those expecting high growth.
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BRK-B 12-Month Price Forecast
The AI assessment is neutral with medium confidence. Berkshire's fundamentals are solid, but the valuation is not compelling, and the stock has lagged the market. The forward PE suggests potential earnings headwinds, which could weigh on the stock. However, the company's fortress balance sheet and consistent cash flow provide downside support. The stance would upgrade to bullish if operating earnings growth accelerates above 8% or if the stock price drops to a more attractive valuation (e.g., below 15x trailing PE). It would downgrade to bearish if the company makes a major value-destructive acquisition or if insurance losses significantly impair capital.
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 +7.3% versus the current price.
Average Target
$547.67
0 analysts
Implied Upside
+7.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$510 - $604
Analyst target range
Berkshire Hathaway has coverage from only 3 analysts, with a consensus recommendation of 'none' (likely meaning a mix of Buy and Hold, but no clear consensus). The average target price is $547.67, implying an upside of approximately 8.2% from the current price of $506.03. The target range spans from $510.00 (low) to $604.00 (high), with the low target suggesting a modest 0.8% upside, while the high target implies a significant 19.4% upside. The narrow coverage and lack of a strong consensus signal limited institutional interest, which is unusual for a mega-cap stock, but the presence of UBS with repeated 'Buy' ratings indicates some bullish sentiment. The wide spread between low and high targets (18.4% difference) reflects uncertainty about the company's future earnings power, particularly given the volatile investment portfolio and the transition in leadership.
Bulls vs Bears: BRK-B Investment Factors
Berkshire Hathaway presents a classic value investment profile with strong fundamentals: diversified earnings, low debt, and robust cash flow. However, the stock has lagged the market significantly over the past year, and the forward PE suggests potential earnings headwinds. The bull case rests on the company's ability to compound value through its operating businesses and buybacks, while the bear case highlights valuation concerns and the leadership transition. Currently, the evidence slightly favors the bull case given the fortress balance sheet and analyst upside, but the key tension is whether Berkshire can reignite growth or if it will remain a slow-growth conglomerate in a market that rewards innovation. The resolution of this tension—whether operating earnings accelerate or stagnate—will determine the stock's trajectory.
Bullish
- Diversified earnings with stable growth: Berkshire's revenue grew 4.4% YoY in Q1 2026 to $93.675B, with contributions from insurance, manufacturing, and McLane. This diversification reduces reliance on any single segment, providing a stable base for long-term compounding.
- Strong profitability and returns: Net margin stands at 18.03% and ROE at 9.33%, both robust for a diversified financial conglomerate. The company's operating margin of 15.85% reflects efficient management across its varied businesses.
- Conservative balance sheet with low debt: Debt-to-equity is only 0.19, and the current ratio is 6.75, indicating ample liquidity and financial flexibility. This fortress balance sheet allows Berkshire to weather economic downturns and pursue opportunistic acquisitions.
- Significant free cash flow generation: TTM free cash flow is $23.872B, providing substantial capital for buybacks, dividends (though currently none), and new investments. This cash flow supports the company's ability to compound intrinsic value over time.
Bearish
- Underperformance relative to market: Over the past year, BRK-B returned -0.17% while the S&P 500 gained 18.65%, a relative underperformance of nearly 19 percentage points. This lag may persist if the market continues favoring growth stocks.
- Forward PE suggests earnings decline: The forward PE of 22.80x is higher than the trailing PE of 16.19x, implying the market expects earnings to fall. This is unusual and could reflect anticipated investment losses or margin compression in operating segments.
- Limited analyst coverage and no consensus: Only 3 analysts cover the stock, with a recommendation of 'none' (mixed). The lack of a strong buy consensus and wide target range ($510-$604) signals uncertainty about future earnings power and leadership transition.
- High valuation on price-to-sales: The PS ratio of 2.92x is elevated compared to historical norms for a conglomerate, suggesting the market is paying a premium for Berkshire's assets. This could limit upside if revenue growth remains in the low single digits.
BRK-B Technical Analysis
Berkshire Hathaway's stock has exhibited a broadly sideways-to-slightly-positive trend over the past year, with a 1-year price change of -0.17%, contrasting sharply with the S&P 500's +18.65% return. The current price of $506.03 sits at approximately 94% of its 52-week range (between $464.01 and $537.74), indicating the stock is closer to its highs but has not broken out to new peaks. This positioning suggests a consolidation phase, with the stock having recovered from its lows but lacking the momentum to push into record territory, reflecting a defensive posture relative to the broader market.
Beta
0.60
0.60x market volatility
Max Drawdown
-14.9%
Largest decline past year
52-Week Range
$464-$538
Price range past year
Annual Return
+2.7%
Cumulative gain past year
| Period | BRK-B Return | S&P 500 |
|---|---|---|
| 1m | +0.1% | -1.1% |
| 3m | +4.3% | +3.0% |
| 6m | +4.2% | +15.4% |
| 1y | +2.7% | +16.2% |
| ytd | +2.7% | +12.1% |
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BRK-B Fundamental Analysis
Berkshire Hathaway's revenue trajectory shows steady growth, with the most recent quarter (Q1 2026) reporting revenue of $93.675 billion, a 4.4% increase year-over-year. This growth is consistent with the prior quarters, which saw revenues of $94.232 billion (Q4 2025), $94.972 billion (Q3 2025), and $92.515 billion (Q2 2025), indicating a stable, low-single-digit growth pattern. The company's diverse segments, including insurance ($25.312 billion), manufacturing ($20.672 billion), and McLane ($11.936 billion), contribute to this resilience, though no single segment is driving explosive growth. This steady expansion supports the investment case for Berkshire as a slow but reliable compounder, though it lacks the high-growth characteristics of technology names.
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'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 22.80x, indicating that 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 cautious outlook, with the market pricing in a potential earnings contraction. Compared to the industry average, Berkshire's PE is at a premium, but this is justified by its superior profitability, as evidenced by a net margin of 18.03% and a return on equity of 9.33%, which are strong for a diversified financial conglomerate.
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 and operational risks stem from Berkshire's reliance on insurance underwriting, which is cyclical and subject to catastrophic losses. In Q1 2026, net income was $10.106B, but this can fluctuate significantly; for instance, Q1 2025 saw net income of only $4.603B due to investment losses. The company's operating margin of 15.85% is respectable but could compress if claims rise or if manufacturing and utility segments face cost inflation. Additionally, with a market cap of $1.086T, the company's size makes it difficult to achieve high growth rates, and its low single-digit revenue growth (4.4% YoY) may not justify a premium valuation if earnings decline as the forward PE suggests.