BRK.A

Technical Analysis

BRK.A exhibits exceptional price stability with minimal fluctuations, a hallmark of its diversified structure. While showing slight underperformance versus the broader market recently (-0.32% over three months), the stock trades comfortably in the upper-middle of its 52-week range. The manageable maximum drawdown of -14.43% suggests controlled volatility rather than excessive risk.

Fundamental Analysis

Berkshire Hathaway demonstrates strong fundamental health with impressive Q3 profitability—net income surged to $30.8 billion, boosting the net margin to 32.4%. Revenue growth remains steady, and operating margins are robust at 17.5%. The company’s interest coverage is solid, and EBITDA improved significantly, reflecting efficient operations and financial discipline.

Valuation

With a PE ratio of 15.88 and PB ratio of 1.54, BRK.A appears reasonably valued compared to the broader market. Its unique conglomerate structure makes direct peer comparisons less relevant, but these metrics suggest the stock is neither overpriced nor conspicuously cheap. The valuation aligns with its steady growth and quality holdings.

Risk Assessment

BRK.A carries low systematic risk, as indicated by its negligible beta, though a maximum drawdown of -14.43% highlights occasional volatility. Liquidity risk exists due to its high share price, which may impact trade execution. There is no significant short interest, implying stable investor sentiment.

Investment Recommendation

Consider Buying. BRK.A offers a blend of reasonable valuation, strong profitability, and historic stability under seasoned leadership. Its diversified portfolio provides a defensive cushion in uncertain markets, while recent earnings growth underscores operational strength. For long-term investors seeking steady compound returns with moderate risk, it remains a compelling holding.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the comprehensive analysis, here is a 12-month outlook for BRK.A:

The primary catalysts for BRK.A are its exceptional operational strength, as demonstrated by the surge in Q3 profitability and robust margins, coupled with its defensive, diversified structure which should continue to deliver steady compound returns. The key risk remains a broader market downturn, which could trigger a drawdown similar to the observed -14.43%, while the high share price presents a persistent, though manageable, liquidity concern. Given the absence of a specific analyst target but considering its reasonable valuation (PE of 15.88) and strong fundamentals, a conservative target price range for the next 12 months would be in the $780,000 - $820,000 area, reflecting moderate growth aligned with its historical performance.

Wall Street Consensus

Most Wall Street analysts are optimistic about BRK.A's 12-month outlook, with consensus target around $743437.69, indicating expected upside potential.

Overall, BRK.A has investment potential but also faces challenges. Here are key factors to weigh before investing.

BRK.A has demonstrated remarkable stability with minimal fluctuations over recent periods despite modest declines. The stock has maintained relative price steadiness compared to typical market volatility, reflecting its unique characteristics as a diversified holding company.

Short-term performance shows minimal movement, with BRK.A declining slightly by -0.03% over one month and -0.32% over three months. While these changes are negligible in magnitude, the stock has underperformed the broader market by 3.69% during the three-month period, indicating relative weakness despite its stability.

Currently trading at $742,300, BRK.A sits approximately 49% above its 52-week low and about 9% below its all-time high, positioning it squarely in the upper-middle range. With a maximum drawdown of -14.43% over the past year, the stock appears reasonably valued rather than significantly overbought or oversold.

1. Revenue & Profitability BRK.A demonstrated solid revenue growth with Q3 2025 revenue increasing to $94.97 billion from $92.52 billion in Q2. Profitability improved significantly with net income surging to $30.8 billion in Q3 from $12.4 billion in Q2, reflected in the net income ratio climbing from 13.4% to 32.4%. The company maintains strong operating margins, with Q3 operating income ratio at 17.5%.

2. Financial Health The company shows manageable interest expenses of $1.26 billion against operating income of $16.66 billion, indicating comfortable interest coverage. Strong cash generation is evident through EBITDA of $42.7 billion in Q3, though specific debt figures aren't available in this dataset. The quarterly interest expense remained stable at around $1.26 billion.

3. Operational Efficiency Operating efficiency appears stable with consistent administrative expenses while showing significant improvement in overall profitability metrics. The substantial increase in EBITDA ratio from 20.9% to 45.0% between quarters suggests enhanced operational performance, though asset turnover and ROE calculations require full balance sheet data not provided in this quarterly dataset.

**Valuation Level**

BRK.A's current PE ratio of 15.88 and PB ratio of 1.54 suggest a valuation that is reasonable or potentially modest relative to the broader market, indicating it is neither significantly overvalued nor undervalued. The PS ratio of 2.89 further supports this assessment, reflecting a stable pricing level for its sales. Overall, these metrics point to a fairly valued stock based on traditional valuation multiples.

**Peer Comparison**

Due to the conglomerate nature of Berkshire Hathaway, a direct peer comparison using standard industry averages is not highly applicable, as its diverse holdings span multiple sectors. Therefore, the provided ratios should be evaluated more in the context of the company's own historical averages and the general market rather than against a specific industry benchmark. This unique structure makes its valuation distinct from typical single-industry firms.

Volatility Risk: BRK.A exhibits no measurable beta, indicating its price movements are largely independent of broader market swings. However, the 1-year maximum drawdown of -14.43% demonstrates that the stock is still capable of significant price depreciation, primarily driven by company-specific factors or sector-wide events rather than systematic market risk.

Other Risks: The absence of short interest suggests minimal speculative pressure or negative sentiment from bearish investors. The primary risk for such a large-cap, low-turnover stock like BRK.A is likely liquidity-related, as the extremely high share price can create practical challenges for execution and limit the investor base, potentially amplifying price impact during large trades.