Berkshire Hathaway Inc.
BRK-B
$532.14
+1.21%
Berkshire Hathaway Inc. is a diversified global conglomerate whose core operations span insurance and reinsurance (property, casualty, life, accident and health), freight rail transportation through BNSF, and regulated utility and energy operations through Berkshire Hathaway Energy, complemented by a sprawling manufacturing, distribution, retail and services footprint that includes McLane, Pilot Travel Centers and a wide array of industrial and consumer brands. The company is best understood not as a single operator but as a capital-allocation platform: a massive equity investment portfolio and a cash/Treasury bill reserve sit alongside wholly owned operating subsidiaries, giving Berkshire a hybrid identity somewhere between an insurance underwriter, an industrial holding company and a closed-end investment vehicle. The current investor narrative centers on the post-Buffett succession era under Greg Abel, the deployment of an enormous liquidity pile into acquisitions or buybacks, and the sensitivity of reported earnings to mark-to-market investment gains — a dynamic clearly visible in the data, where Q2 2026 net income of $25.7 billion was flattered by $14.6 billion of other income versus a Q1 2026 loss of $3.1 billion in that line. Attention is also focused on insurance underwriting margins, BNSF and utility capital intensity, and whether the shares' premium book value multiple can be justified by continued compounding.…
BRK-B
Berkshire Hathaway Inc.
$532.14
BRK-B 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Berkshire Hathaway Inc.'s 12-month outlook, with a consensus price target around $547.67 and implied upside of +2.9% versus the current price.
Average Target
$547.67
0 analysts
Implied Upside
+2.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$510 - $604
Analyst target range
Coverage is thin but uniformly positive. Only 3 analysts cover BRK-B, and all lean constructive, producing a consensus recommendation of "buy" with a recommendation mean of 2.0. The average target price is $547.67, which implies roughly +2.9% upside from the current $532.14 — a modest gap that reflects how close the stock already trades to fair value after its run to within 1.1% of the 52-week high. Consensus estimates call for EPS of $22.73 (a very tight $22.67–$22.78 range) on average revenue of $421.59 billion, suggesting analysts expect earnings to normalize well below the trailing figure.
Signal strength is moderate. The target range of $510 to $604 is wide relative to the average — the high target implies about 13.5% upside and would require either multiple expansion toward 2x book or a major capital-deployment catalyst such as a large acquisition, while the low target of $510 implies about 4.2% downside and prices in earnings normalization or margin pressure at the insurance and railroad units. Institutional ratings show a consistent pattern: UBS has reiterated Buy on every dated action from February 2025 through August 2026, with no downgrades or upgrades in the record, indicating stable conviction rather than fresh catalysts. The limited three-analyst coverage is typical for a mega-cap with a passive-heavy shareholder base and low float turnover, but it also means less independent scrutiny and potentially less efficient price discovery around news events.
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BRK-B Technical Analysis
Berkshire Hathaway's Class B shares are in a sustained, orderly uptrend. The stock has gained 8.84% over the past year and 7.08% year-to-date, and at $532.14 it sits at roughly 91.5% of its 52-week range of $464.01 to $537.74 — just 1.1% below the 52-week high. That positioning signals persistent accumulation and momentum rather than overextension, particularly given the stock's low beta of 0.595 and a maximum drawdown over the period of only -14.95%, which is characteristic of a low-volatility compounder grinding higher rather than a speculative momentum name.
Short-term momentum is positive but has decelerated relative to the medium-term trend. The stock is up 2.35% over the past month versus 8.37% over three months and 12.10% over six months, meaning the pace of gains has slowed even as the direction remains intact; the 1.21% single-day advance on the latest session (from a $525.68 previous close) suggests the uptrend reasserted itself after a September consolidation between roughly $498 and $520. Relative strength tells a nuanced story: Berkshire has outperformed the S&P 500 over three months (+5.68 percentage points) and six months (+4.62 points), but has lagged over one year (-6.69 points) and year-to-date (-4.85 points), consistent with a defensive name that underperformed during a strong market rally but is now catching up as leadership broadens.
Key technical levels are well defined. Support sits at the 52-week low of $464.01, with a nearer shelf around $495–$500 where the stock repeatedly found buyers in August and September; resistance is the 52-week high of $537.74, and a decisive breakout above that level — the stock is already within 1.1% of it — would confirm a fresh leg higher and likely trigger momentum-driven inflows. A breakdown below $500 would neutralize the uptrend and put the $464 low in play. With a beta of 0.595, Berkshire is roughly 40% less volatile than the S&P 500, which supports larger position sizing for volatility-targeted portfolios but also means the stock will likely lag in sharp risk-on rallies; the short ratio of 2.67 days indicates no meaningful bearish positioning against the name.
Beta
0.59
0.59x market volatility
Max Drawdown
-14.9%
Largest decline past year
52-Week Range
$464-$538
Price range past year
Annual Return
+8.8%
Cumulative gain past year
| Period | BRK-B Return | S&P 500 |
|---|---|---|
| 1m | +2.4% | +0.2% |
| 3m | +8.4% | +2.9% |
| 6m | +12.1% | +8.4% |
| 1y | +8.8% | +14.9% |
| ytd | +7.1% | +11.9% |
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BRK-B Fundamental Analysis
Revenue is growing at a solid clip. Q2 2026 revenue reached $101.81 billion, up 10.04% year-over-year from $92.52 billion in Q2 2025, and the multi-quarter trajectory shows acceleration: revenue rose from $89.73 billion in Q1 2025 to $93.68 billion in Q1 2026 (+4.4% YoY) and from $94.97 billion in Q3 2025 to $94.23 billion in Q4 2025. Segment data for the latest period shows the manufacturing businesses as the largest contributor at $22.57 billion, followed by insurance at $26.18 billion, Pilot at $14.93 billion, McLane at $12.12 billion, service and retail at $11.88 billion, BNSF at $6.60 billion and Berkshire Hathaway Energy at $6.74 billion — a balanced mix where no single unit dominates, which underpins the durability of the growth. The 10% top-line expansion is well ahead of nominal GDP-type growth and implies the operating businesses, not just investment income, are contributing.
Profitability is strong but lumpy because of investment marks. Q2 2026 net income was $25.67 billion on a 25.2% net margin, with gross margin of 23.4% and operating margin of 17.2%; the prior four quarters ranged from $4.60 billion (Q1 2025, 5.1% net margin) to $30.80 billion (Q3 2025, 32.4% margin), a dispersion driven almost entirely by the other-income line ($14.57 billion in Q2 2026 versus -$7.57 billion in Q1 2025). Gross margin has been remarkably stable between 23.0% and 24.6% across the last five quarters, indicating the underlying operating businesses are holding pricing and cost discipline, while the TTM net margin of 18.0% and operating margin of 15.9% are healthy for a conglomerate with large low-margin distribution and retail revenue. The key takeaway is that underwriting and operating profits are steady, and reported earnings volatility is a function of the equity portfolio rather than operational deterioration.
Financial health is exceptional. Debt-to-equity is just 0.194, the current ratio is 6.75, and interest coverage is a comfortable 13.1x; TTM free cash flow is $24.22 billion, with quarterly FCF of $5.57 billion in Q2 2026, $5.45 billion in Q1 2026 and $4.99 billion in Q4 2025. ROE of 9.33% and ROA of 6.01% look modest in isolation but are depressed by the enormous low-returning cash and investment base — Berkshire ended Q2 2026 with $41.36 billion of cash after deploying $172.28 billion into investments and repurchasing $4.21 billion of stock during the quarter. The company funds capex ($5.65 billion in Q2) and growth entirely from internal cash flow, and the absence of a dividend (payout ratio of 0) means all retained earnings compound for shareholders; the main financial risk is not leverage but the drag of excess liquidity on returns.
Quarterly Revenue
$101.8B
2026-06
Revenue YoY Growth
+10.0%
YoY Comparison
Gross Margin
23.4%
Latest Quarter
Free Cash Flow
$24.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BRK-B Overvalued?
Because Berkshire is solidly profitable — Q2 2026 net income of $25.67 billion and TTM EPS of roughly $32.8 — the PE ratio is the appropriate primary metric, though book value (P/B) is the more traditional anchor for this name. The stock trades at 16.2x trailing earnings versus 23.9x forward earnings, an unusual inversion that reflects the market's expectation that investment gains and underwriting profits will normalize lower; the forward multiple of 23.9x on estimated EPS of $22.73 implies the market is paying up for a lower, cleaner earnings base. The P/B of 1.51x and P/S of 2.92x round out a valuation that is rich on sales but moderate on earnings and book.
Peer comparison is complicated by Berkshire's unique structure, but the relevant benchmarks are diversified insurers and financial holding companies. At 16.2x trailing PE and 1.51x book, Berkshire trades at a premium to the ~1.3–1.4x book at which large diversified insurers typically change hands, and its 16.2x EV/EBITDA is elevated relative to the 10–12x range common for insurance-led conglomerates. The premium is defensible on quality grounds — a 0.19 debt-to-equity ratio, 6.75 current ratio and $24.2 billion of TTM free cash flow are fortress-like — but the 2.92x P/S ratio is high for a business with a 23.6% gross margin, and the negative PEG ratio of -0.65 is a mechanical artifact of earnings volatility rather than a meaningful signal. On balance, the stock is priced as a high-quality defensive compounder, not a bargain.
Historical context is the most cautionary part of the valuation case. Berkshire's own PE has ranged from about 4.8x (Q1 2023) to 62.4x (Q1 2025) over the past several years, with the current 16.2x sitting in the middle-to-upper portion of that band; more tellingly, the P/B of 1.51x is near the top of its recent range of roughly 1.30x to 1.75x, and the P/S of 2.92x compares with historical price-to-sales ratios that ran between 7.9x and 12.8x on the older share-count basis. The market is therefore pricing in optimistic assumptions — successful capital deployment, stable underwriting and continued compounding — leaving limited margin of safety if earnings normalize toward the $22.73 forward estimate.
PE
16.2x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 4x~26x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.2x
Enterprise Value Multiple