Berkshire Hathaway Inc.
BRK-B
$509.92
-1.24%
Berkshire Hathaway Inc. is a diversified global conglomerate headquartered in Omaha, Nebraska, with core operations spanning insurance, freight rail transportation, and utilities, alongside a vast portfolio of manufacturing, service, and retail businesses. As one of the largest companies in the world by market capitalization, it is led by a long-term value investing philosophy and holds significant equity stakes in major public companies. The current investor narrative centers on the company's ability to deploy its massive cash reserves, the performance of its insurance and energy segments, and the ongoing transition as it navigates a post-Buffett era, with attention on capital allocation and operational efficiency.…
BRK-B
Berkshire Hathaway Inc.
$509.92
Investment Opinion: Should I buy BRK-B Today?
Based on the analysis, BRK-B is rated a Buy, with a thesis that its diversified business model, strong cash generation, and reasonable valuation provide a solid risk-adjusted return. The analyst consensus is Buy, with an average target price of $525.33, which is essentially in line with the current price, but the high target of $585 offers 11.5% upside. The stock's low beta of 0.607 and low debt-to-equity of 0.19x provide a defensive profile, making it suitable for long-term investors seeking stability and growth.
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BRK-B 12-Month Price Forecast
The AI assessment leans bullish, as Berkshire Hathaway's fundamentals are solid, with steady revenue growth, strong cash flow, and a reasonable valuation. The low beta and diversified business model make it a defensive choice, but the limited analyst coverage and wide target spread introduce uncertainty. The stance would be upgraded to high confidence if the company announces a major acquisition or if revenue growth accelerates above 6%. Conversely, it would be downgraded to neutral if the forward P/E expands above 30x or if the stock breaks below its 50-day moving average.
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 $531.67 and implied upside of +4.3% versus the current price.
Average Target
$531.67
0 analysts
Implied Upside
+4.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$481 - $604
Analyst target range
The wide spread between the low and high targets ($104) indicates significant divergence in analyst expectations, likely due to the complexity of valuing Berkshire's diverse holdings and the impact of investment portfolio fluctuations. The low target of $481 may price in a market downturn or underperformance in key segments, while the high target of $585 assumes continued strong performance in insurance and energy, plus successful capital deployment. Institutional ratings data shows UBS has maintained a 'Buy' rating consistently since 2024, with no recent downgrades, suggesting a stable positive outlook from at least one major firm. However, the limited coverage (3 analysts) is unusual for a mega-cap stock, possibly due to the company's unique structure and the difficulty in modeling its conglomerate operations, which could lead to less efficient price discovery and higher volatility.
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Bulls vs Bears: BRK-B Investment Factors
Berkshire Hathaway presents a balanced risk/reward profile, with strong fundamentals, a defensive business model, and a reasonable valuation, but it faces challenges from limited analyst coverage, underperformance relative to the S&P 500, and a high forward P/E. The bull case is supported by the company's consistent revenue growth, robust free cash flow, and low beta, while the bear case highlights the potential for earnings normalization and the stock's inability to keep pace in strong bull markets. The most important tension is whether the market will continue to reward BRK-B's stability with a premium valuation, or if the lack of growth catalysts will cause it to lag. Currently, the evidence slightly favors the bull case, as the stock is near its highs and the analyst consensus is Buy, but the wide target spread and limited coverage warrant caution.
Bullish
- Near 52-week high with strong momentum: BRK-B trades at $524.61, just 0.16% below its 52-week high of $525.44, with a 3-month gain of 10.23% and a 1-year gain of 11.88%. The stock's relative strength over the past month is 1.30x the S&P 500, indicating robust buying interest and a clear uptrend.
- Solid revenue growth and profitability: Q1 2026 revenue grew 4.4% YoY to $93.675 billion, with a net margin of 18.03% and operating margin of 15.85%. The company generated $23.872 billion in trailing twelve-month free cash flow, demonstrating strong cash generation across its diverse segments.
- Attractive valuation relative to growth: The trailing P/E of 16.19x is only 8% above the industry average of 15x, while the company's ROE of 9.33% and low debt-to-equity of 0.19x justify a modest premium. The forward P/E of 24.32x reflects expected earnings normalization, but the P/S of 2.92x is reasonable for a high-margin conglomerate.
- Low beta provides defensive characteristics: With a beta of 0.607, BRK-B is significantly less volatile than the broader market, making it an attractive holding for risk-averse investors. Its diversified operations across insurance, rail, and utilities provide stable cash flows and downside protection.
Bearish
- Limited analyst coverage and wide target spread: Only 3 analysts cover BRK-B, which is unusually low for a mega-cap, and the target price spread is $104 (from $481 to $585). This lack of coverage may lead to inefficient price discovery and higher volatility, as the market struggles to value the conglomerate's complex holdings.
- Underperformance vs. S&P 500 over 1 year: BRK-B gained 11.88% over the past year, but the S&P 500 returned 21.46% in the same period, resulting in a relative underperformance of -9.58%. This suggests the stock may lag in strong bull markets, as its defensive nature limits upside participation.
- Elevated forward P/E signals earnings normalization: The forward P/E of 24.32x is significantly higher than the trailing P/E of 16.19x, implying the market expects earnings to decline from current levels. This could be due to lower investment gains or higher catastrophe losses in insurance, which may pressure future EPS.
- High payout ratio and no dividend: BRK-B pays no dividend, with a payout ratio of 0%, which may deter income-focused investors. The company's policy of retaining earnings for reinvestment is a long-term strategy, but it offers no immediate cash return to shareholders.
BRK-B Technical Analysis
Berkshire Hathaway's stock is in a clear uptrend, with a 1-year price change of +11.88% and the current price of $524.61 sitting just 0.16% below its 52-week high of $525.44, while being 13.7% above its 52-week low of $461.37. This positioning near the upper end of the 52-week range indicates strong momentum and investor confidence, though it also suggests the stock may be approaching overbought conditions. The 6-month price change of +3.25% is modest, but the 3-month change of +10.23% shows accelerating momentum, with the stock breaking out to new highs in recent weeks.
Beta
0.61
0.61x market volatility
Max Drawdown
-14.9%
Largest decline past year
52-Week Range
$464-$538
Price range past year
Annual Return
+8.4%
Cumulative gain past year
| Period | BRK-B Return | S&P 500 |
|---|---|---|
| 1m | +2.6% | +3.1% |
| 3m | +5.4% | +3.3% |
| 6m | +2.5% | +13.3% |
| 1y | +8.4% | +20.2% |
| ytd | +2.6% | +13.3% |
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BRK-B Fundamental Analysis
Berkshire Hathaway's revenue for Q1 2026 was $93.675 billion, up 4.4% year-over-year from $89.725 billion in Q1 2025, reflecting steady growth across its diverse segments. The company's revenue has been relatively stable over the past year, with quarterly figures ranging from $89.7 billion to $94.97 billion, indicating a mature but resilient business model. Segment data shows the insurance group as the largest revenue contributor at $25.312 billion, followed by manufacturing at $20.672 billion, with the energy and railroad segments providing stable cash flows.
Quarterly Revenue
$93.7B
2026-03
Revenue YoY Growth
+4.4%
YoY Comparison
Gross Margin
28.8%
Latest Quarter
Free Cash Flow
$23.9B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BRK-B Overvalued?
Given Berkshire Hathaway's positive net income, the trailing P/E ratio of 16.19x is the primary valuation metric, while the forward P/E of 24.32x suggests the market expects earnings growth to slow or normalize, as the trailing earnings include significant investment gains. The P/S ratio of 2.92x is elevated relative to the sector, reflecting the company's high-margin insurance and investment operations. Compared to the industry average P/E of 15x, Berkshire trades at a slight premium of 8%, which is justified by its superior return on equity of 9.33% and strong balance sheet.
PE
16.2x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 4x~35x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks for Berkshire Hathaway stem from its reliance on insurance underwriting, which is subject to catastrophic losses and cyclical pricing. The company's net income can be volatile, as seen in Q1 2025 when EPS was only $2.13 due to investment losses, versus $4.68 in Q1 2026. Additionally, the high forward P/E of 24.32x suggests the market expects earnings to decline, which could lead to multiple compression if operating results disappoint. The debt-to-equity ratio of 0.19x is low, but the company's massive scale means even small margin changes can significantly impact earnings, as evidenced by the operating margin fluctuating between 13.8% and 17.5% over the past year.
FAQ
The key risks of holding BRK-B include: (1) financial risk from insurance underwriting volatility, as seen in Q1 2025 when EPS dropped to $2.13 due to investment losses, (2) market risk from a potential valuation compression if the forward P/E of 24.32x is not justified by future earnings, (3) competitive risk from pricing pressures in insurance and energy sectors, and (4) company-specific risk from limited analyst coverage (only 3 analysts), which may lead to inefficient price discovery. The most severe risk is a major market downturn, which could cause the stock to fall to its 52-week low of $461.37, a -12.1% decline. However, the low beta of 0.607 provides some cushion against market volatility.
The 12-month forecast for BRK-B is moderately bullish, with a base case probability of 50% for a target range of $500-$550, centered on the analyst average of $525.33. The bull case, with a 30% probability, targets $550-$585, driven by strong operating results and successful capital deployment. The bear case, with a 20% probability, targets $461-$481, reflecting a market downturn or major insurance losses. The most likely scenario is the base case, where the stock trades in line with its historical valuation, offering modest returns. Investors should monitor quarterly earnings and any major acquisitions to adjust their expectations.
BRK-B is fairly valued relative to its history and peers. The trailing P/E of 16.19x is slightly above the industry average of 15x, but this premium is justified by the company's superior return on equity of 9.33% and low debt-to-equity of 0.19x. The P/S ratio of 2.92x is elevated, reflecting the high-margin nature of its insurance and investment operations. The forward P/E of 24.32x suggests the market expects earnings to decline, which could indicate that the stock is slightly overvalued if operating results disappoint. However, the stock's low beta and diversified earnings stream support a modest premium. Overall, the market is pricing in stable, moderate growth, and the stock is neither significantly overvalued nor undervalued.
BRK-B is a good stock to buy for investors seeking a defensive, long-term holding with a reasonable valuation. The stock trades at a trailing P/E of 16.19x, only 8% above the industry average, and offers a low beta of 0.607, providing downside protection. The analyst consensus is Buy, with an average target price of $525.33, implying limited upside from the current price of $524.61, but the high target of $585 offers 11.5% upside. The main risk is the potential for earnings normalization, which could pressure the forward P/E of 24.32x. Overall, it is a suitable buy for investors with a time horizon of 3-5 years, particularly those who value stability and diversification.
BRK-B is best suited for long-term investment, given its low beta of 0.607, stable cash flows, and diversified business model. The stock's 1-year return of 11.88% is modest, but it offers downside protection in volatile markets, making it a core holding for conservative portfolios. Short-term trading is possible, as the stock has shown momentum with a 3-month gain of 10.23%, but the limited analyst coverage and wide target spread may lead to unpredictable price movements. For long-term investors, a minimum holding period of 3-5 years is recommended to fully benefit from the company's capital allocation and compounding of earnings. The lack of a dividend makes it less suitable for income-focused investors, but its growth potential and stability make it an excellent long-term wealth-building tool.
