Berkshire Hathaway Valuation
| BERK34 Stock | BRL 142.74 2.23 1.54% |
At this time, the firm appears to be overvalued. Berkshire Hathaway shows a prevailing Real Value of R$124.48 per share. The current price of the firm is R$142.74. Our model approximates the value of Berkshire Hathaway from analyzing the firm fundamentals such as Current Valuation of 4.09 T, insignificant profit margin, and Return On Equity of -0.001 as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Berkshire Hathaway's price fluctuation is very steady at this time. Calculation of the real value of Berkshire Hathaway is based on 3 months time horizon. Increasing Berkshire Hathaway's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Berkshire Hathaway is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Berkshire Stock. However, Berkshire Hathaway's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 142.74 | Real 124.48 | Hype 144.97 | Naive 149.29 |
The real value of Berkshire Stock, also known as its intrinsic value, is the underlying worth of Berkshire Hathaway Company, which is reflected in its stock price. It is based on Berkshire Hathaway's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Berkshire Hathaway's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Berkshire Hathaway helps investors to forecast how Berkshire stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Berkshire Hathaway more accurately as focusing exclusively on Berkshire Hathaway's fundamentals will not take into account other important factors: Berkshire Hathaway Total Value Analysis
Berkshire Hathaway is currently projected to have takeover price of 4.09 T with market capitalization of 3.62 T, debt of 111.91 B, and cash on hands of 105.41 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Berkshire Hathaway fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.09 T | 3.62 T | 111.91 B | 105.41 B |
Berkshire Hathaway Investor Information
The company has price-to-book (P/B) ratio of 1.49. Some equities with similar Price to Book (P/B) outperform the market in the long run. Berkshire Hathaway had not issued any dividends in recent years. The entity had 20:1 split on the 27th of January 2021. Based on the key measurements obtained from Berkshire Hathaway's financial statements, Berkshire Hathaway is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Berkshire Hathaway Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of Berkshire suggests not a very effective usage of assets in December.Berkshire Hathaway Ownership Allocation
Berkshire Hathaway holds a total of 43.94 Billion outstanding shares. Almost 99.99 percent of Berkshire Hathaway outstanding shares are held by general public with 0.01 % by other corporate entities. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Berkshire Hathaway Profitability Analysis
The company reported the revenue of 276.09 B. Net Income was 89.8 B with profit before overhead, payroll, taxes, and interest of 114.86 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Berkshire Hathaway's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Berkshire Hathaway and how it compares across the competition.
About Berkshire Hathaway Valuation
The stock valuation mechanism determines Berkshire Hathaway's current worth on a weekly basis. Our valuation model uses a comparative analysis of Berkshire Hathaway. We calculate exposure to Berkshire Hathaway's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Berkshire Hathaway's related companies.Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska. BERKSHIRE DRN operates under InsuranceDiversified classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 372000 people.
8 Steps to conduct Berkshire Hathaway's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Berkshire Hathaway's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Berkshire Hathaway's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Berkshire Hathaway's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Berkshire Hathaway's revenue streams: Identify Berkshire Hathaway's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Berkshire Hathaway's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Berkshire Hathaway's growth potential: Evaluate Berkshire Hathaway's management, business model, and growth potential.
- Determine Berkshire Hathaway's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Berkshire Hathaway's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Berkshire Stock analysis
When running Berkshire Hathaway's price analysis, check to measure Berkshire Hathaway's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Berkshire Hathaway is operating at the current time. Most of Berkshire Hathaway's value examination focuses on studying past and present price action to predict the probability of Berkshire Hathaway's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Berkshire Hathaway's price. Additionally, you may evaluate how the addition of Berkshire Hathaway to your portfolios can decrease your overall portfolio volatility.
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