Quantitative fair value estimate represents morningstars estimate of the per share dollar amount that a companys equity is worth today. From 2010 to 2021 berkshire hathaway book value per share quarterly data regression line had arithmetic mean of 118. Berkshire hathaway cl b stocks price quote with latest realtime prices, charts. Morningstar has revised its intrinsic value estimate for the berkshire hathaway class b shares, stating they believe the stock has an intrinsic value of $8 per share equal to $133,500 per class a share since it takes 1,500 class b shares to equal a single class a share. View berkshire hathaways fair value, stock price, financial statements, news, valuation models, fundamental charts, margin of safety, and more. Get the latest berkshire hathaway stock price and detailed information including brk. 85 times inferring a morethan 15% gain from todays trading prices.
Using our twopronged approach, we calculate the value. How has berkshire hathaways share price performed over time and what events caused price changes. Companies that berkshire has made shares are currently at an even greater discount. Berkshire hathaway book value per share 20062021 brk. × berkshires shares remain slightly undervalued in a market that appears to be fairly valued. Book value per share is a ratio that weighs stockholders equity against shares outstanding. 5% per year is forecast to grow slower than 20% per year. If that revised book estimate were right, itd be up 10. Berkshire hathaway class a reported the companys net worth during 201 rose 22% with book value equal to $261,417 per class a share as of 12311, notes ingrid hendershot, valueoriented money manager and editor of hendershot investments during the year, berkshire reported record net earnings of $81. In a shift, buffett says focus on berkshires stock price reuters. Thats not the known and published book per share, but at least its the already in the past book per share estimate.
Todays book value lets call it 425 billion, that gets us to a 740 billion dollar range of. Usd new york stock exchange last close prices updated as of may 20, 2021, 7. When comparing the enterprise value to ebitda ratio of brk. Financial ratios include market cap, enterprise value, book value, quick ratio, current ratio, ncav, ebitda, profit margin. Since book value now understates intrinsic value more than it did at these two points. Berkshire hathaway stock has rarely been this cheap nasdaq. Which implies about a $280 per share for the b shares. Bs stock price, price target, earnings, forecast, insider trades, and news at marketbeat. Compared to an average industry price book ratio of 1. Does berkshire hathaway shed its book value premium. Over the last 53 years that is, since present management took over, pershare book value has grown from $1 to $211,750, a rate of 1.
Berkshire hathaway price to book ratio 20062021 brk. 31, book value per share has gained an overall 1,01,8 percent. How warren buffett made berkshire hathaway a winner. Berkshire hathaway may be a buy, even as warren buffett. Berkshire hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities.
Trading economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. Fundamental analysis data for berkshire hathaway inc brk b, including price earnings ratios and earnings per share, at ally invest. Berkshire hathaway stock has rarely been this cheap barrons. Share price with the market expectations in terms of earnings per share. To the shareholders of berkshire hathaway inc o ur gai n in net worth during 1 was $358 million, which increased the pershare book value of both our class a and class b stock by 0. Warren buffett is ditching the method he uses to evaluate. Book value per share, which warren said still serves as a good proxy for. Company for a mere $835 million in 2002 after its stock lost 7% of its value. 5 reasons to consider buying berkshire hathaway morningstar. Buffett has warned shareholders for years that the companys book value per share matters to him much more than any quarterly or annual. Berkshire hathaway inc class b, nyse, equities, quote.
Warren buffett explains why book value is no longer relevant. Berkshires $34b bnsf railroad investment nearly doubles. Brk b is trading below fair value by more than 20%. Date, stock price, book value per share, price to book ratio. 8 at its current price, berkshire stock trades at 1. Warren buffett mulls $100 billion berkshire share repurchase. $25 billion quarterly loss for berkshire hathaway as buffett. Berkshire hathaway earnings per share popped 27% in q1, rising to $3. Warren buffetts berkshire hathaway posts strong first quarter. Why buffett wont increase the buyback threshold from 1. Berkshire fell to as low as $200 per class b share. Berkshire hathaway book value per share is increasing over the years with slightly volatile fluctuation. 3 reasons i just bought more berkshire hathaway stock. The first quarter of 2021 has been, for the most part, a good time for equity markets, but there have been surprises.
Berkshire book value per share from 2010 to 2021 nyse. Price to cash ratio most recent annual cash flow per share, 20. What is the historical relationship between berkshire. Berkshire hathaway today is the th largest company in the world and 3rd. B book value per share as of today may 22, 2021 is $15. Earnings per share for the company in 2020 finished at $24. Warren buffett has long told investors in his berkshire hathaway inc they. For instance, if the book value per share of a company is $1. Berkshire hathaway inc is an american multinational conglomerate holding company. Quora user, berkshire hathaway & warren buffett sme. Price book value is a widely used stock evaluation measure. In 164, stanton made an oral tender offer to buy back buffetts stake in the company for $111. Berkshire hathaway has averaged an annual growth in book value of 1. View realtime stock prices and stock quotes for a full financial overview.
Thats because book value, or shareholder equity per share, has likely risen because of the appreciation in berkshires equity portfolio, which. Following their value investing philosophy, the company owns huge. B is poor value based on its book value relative to its share price 1. Book value per share is expected to dwindle to 165. 3 billion, which increased the pershare book value of both our class a and class b stock by 23%. Its class a stock trading well above $400,000 per share. Berkshire hathaway q1 2021 earnings and book value estimates. What is the right premium over book value that investors should pay for buffetts wisdom as a stock picker, investment banker and acquirer of. In depth view into berkshire hathaway book value per share explanation, calculation. Price to book ratio most recent quarterly book value per share, 1. Berkshire hathaway stock has underperformed longer than. Berkshire hathaway posts $14 billion in net earnings, dip.
Like i said, berkshire hathaway stock is a steal below. The fundamental analysis module provides a way for investors to measures berkshire hathaways intrinsic value by examining all of its available economic and. Usd new york stock exchange last close prices updated as of may 1, 2021, 7. To the shareholders of berkshire hathaway inc our gain in net worth during 186 was $42. This multiple is used to compare a companys market value with its earnings. Berkshire hathaway is the ultimate warren buffett stock but is it a buy. Berkshires old policy said repurchase prices would not exceed 1. Book value per share is a widely used stock evaluation measure. Find the latest book value per share for berkshire hathaway inc. Market multiple valuation of berkshire hathaway inc. Why berkshire hathaway is worth more than its book value. As buffett describes it, berkshire could have invested $50 billion to $75 billion of capital at attractive prices had it acted before the fed stepped in.
The book value is essentially the tangible accounting value of a firm. Learn how to calculate this ratio, and why it is used. Barrons estimates the current book value around $238,000 a share, meaning berkshire now trades for 1. It would be easier to list the industries in which berkshire hathaway doesnt turn. Our fair value estimate for berkshire is $175,000 per class a share or $117 per class b share, reflective of a price to fair value multiple of around 0. On pershare metrics such as earnings per share or book value per share are. Latest closing price divided by the last 12 months revenuecash flow per share. Is berkshire a buy at the current price to book value. In the table below, i show for each year from 185 through 2015, berkshires book value per share and market price per share of its class a.
Historical price to book ratio values for berkshire hathaway brk. New york including stock price, stock chart, company news, key statistics, fundamentals and company profile. Berkshire hathaway inc market multiple valuation brk. Over the last 22 years that is, since present management took over, our pershare book value has grown from $1. Fundamental analysis of berkshire hathaway cl bnyse. B stock summary and trading ideas berkshire hathaway new nyse. Latest closing price divided by the earningspershare based on the trailing 12 months. The b shares have an economic interest equal to 130th that of the a. B berkshire hathaway stock price per share is $287. Morningstar says berkshire hathaways intrinsic value is. B stock, including valuation metrics, financial numbers, share information and more. Find the latest price book value for berkshire hathaway inc. Berkshire hathaway is undervalued on a pricebook value. Price to book value is a valuation ratio that is measured by stock price book value per share.
1674 1055 1662 1175 582 921 529 352 19 1646 1360 230 657 559 327 385 1290 970 1616 460 1488 615 250 951 742 XML HTML