Insurance - Diversified · NYSE
Current Price
$475.51
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Berkshire Hathaway Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America. It also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. In addition, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. Further, it provides recreational vehicles, apparel and footwear products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys. Additionally, the company distributes televisions and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution services, and professional aviation training and shared aircraft ownership programs. It also retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle clothing and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.
ROIC (TTM)
3.5%
ROE (TTM)
9.8%
FCF Yield
2.44%
Based on trailing twelve-month data, BRK-B shows a free cash flow per share of N/A and a ROIC of 3.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.44% are important context metrics when evaluating BRK-B's stock valuation relative to peers.
The intrinsic value of BRK-B depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether BRK-B is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $475.51. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Berkshire Hathaway Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Insurance - Diversified industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BRK-B's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Berkshire Hathaway Inc., this means projecting how much free cash flow the Insurance - Diversified will produce over the next 5-10 years, then discounting those amounts to today's dollars. BRK-B's ROIC of 3.5% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BRK-B, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
