Berkshire Hathaway Inc. (BRK.B) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-28.6%

$397.35

vs $556.26 price

Levered DCF

$179.30

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

3.14

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.19×	10.98×	8.06×	-29.9×	7.54×	13.04×	6.82×	125.26×
P/B	1.51×	1.51×	1.38×	1.44×	1.34×	1.25×	1.31×	1.44×
P/S	2.92×	2.63×	2.13×	2.25×	2.45×	2.26×	2.18×	2.03×
EV / EBITDA	16.19×	14.85×	14.37×	14.72×	15.49×	15.5×	14.04×	13.62×
Gross margin	23.6%	23.3%	19.5%	19.7%	20.0%	19.9%	20.5%	20.5%
Operating margin	15.9%	16.0%	13.2%	13.8%	12.7%	12.2%	12.8%	13.0%
Net margin	18.0%	24.0%	26.4%	-7.5%	32.6%	17.3%	32.0%	1.6%
Current ratio	6.75×	5.94×	4.14×	3.83×	4.74×	4.28×	4.18×	3.7×
Debt / equity	0.19×	0.22×	0.24×	0.27×	0.24×	0.28×	0.26×	0.28×
Interest coverage	11.62×	11.43×	9.62×	9.56×	8.39×	7.34×	8.25×	8.33×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.3%	13.7%	17.1%	-4.8%	17.8%	9.6%	19.2%	1.2%
Return on invested capital	4.1%	4.4%	3.8%	3.3%	3.1%	2.8%	3.3%	4.8%
Return on assets	5.5%	7.7%	9.0%	-2.4%	9.4%	4.9%	10.0%	0.6%
Free cash flow yield	2.3%	1.2%	3.8%	3.2%	3.9%	4.8%	4.1%	4.5%
Earnings yield	6.2%	9.1%	12.4%	-3.3%	13.3%	7.7%	14.7%	0.8%
Enterprise value	$1.2T	$1.1T	$870.7B	$772.5B	$708.4B	$628.9B	$600.2B	$570.6B
Net debt / EBITDA	1.2×	1.33×	1.58×	1.75×	0.68×	1.83×	1.05×	1.6×
Cash conversion cycle (days)	35	42	45	57	47	45	47	43