BRK.B Fair Value | Berkshire Hathaway Inc (BRK.A) (2024)

Peter Lynch's formula is:

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
2019-12-31 2020-12-31 2021-12-31 2022-12-31 2023-12-31 5Y Avg
Net income 81,417.00 42,521.00 89,795.00 -22,819.00 96,223.00 57,427.40
YoY growth 1,924.79% -47.77% 111.18% -125.41% 521.68% 476.89%
BRK.B Fair Value | Berkshire Hathaway Inc (BRK.A) (2024)

FAQs

BRK.B Fair Value | Berkshire Hathaway Inc (BRK.A)? ›

As of 2024-06-04, the Fair Value of Berkshire Hathaway Inc (BRK.B) is 847.11 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 414.79 USD, the upside of Berkshire Hathaway Inc is 104.2%.

Is Berkshire Hathaway Class B undervalued? ›

Fair Value Estimate for Berkshire Hathaway

With its 4-star rating, we believe Berkshire Hathaway's stock is undervalued compared with our long-term fair value estimate of $427 per Class B share, which is equivalent to 1.45 times our estimate of the firm's book value per share at the end of 2024 and 1.35 times for 2025.

What is the true value of BRK B? ›

As of 2024-06-02, the Intrinsic Value of Berkshire Hathaway Inc (BRK.B) is 442.32 USD. This BRK. B valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 414.40 USD, the upside of Berkshire Hathaway Inc is 6.7%.

What is brkb 10 year average return? ›

Trailing Returns
Total Return %1-Day10-Year
BRK.B-0.2812.05
Industry-0.0711.26
Index0.3312.17

What is the difference between Berkshire Hathaway stock BRK A and BRK B? ›

Berkshire Hathaway Class A is the company's original stock offering, known for its stratospheric price per share. Berkshire Hathaway Class B shares, first issued in 1996, are more modestly priced and have a correspondingly modest share of equity value in the company.

Is BRK B worth investing? ›

Berkshire Hathaway

A 1.57%) (BRK. B 1.42%) stock has proven to be one of the best-performing investments of all time. Since 1980, shares have increased more than 2,000 times in value. A $500 investment would now be worth a cool $1 million.

Does BRK B outperform the S&P 500? ›

The results are nothing short of remarkable. Berkshire Hathaway's compound annual return since Buffett took over is 19.8% compared to 10.2% for the S&P 500. Buffett managed to achieve those results through all sorts of markets and economic conditions.

What is a fair price for brk b? ›

As of 2024-06-02, the Fair Value of Berkshire Hathaway Inc (BRK.B) is 847.11 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 414.4 USD, the upside of Berkshire Hathaway Inc is 104.4%.

What is the future of BRK B? ›

B Stock Forecast FAQ. Based on analyst ratings, Berkshire Hathaway B's 12-month average price target is $454.25. Berkshire Hathaway B has 9.62% upside potential, based on the analysts' average price target.

How much did BRK B stock cost in 2000? ›

In January of 2000, shares of Berkshire Class B traded at about $1,646. Right before the stock split in 2010, they traded for roughly $3,353, which means at that point, you were up about 104% and had turned your $5,000 into $10,200.

Is a 10% annual return realistic? ›

The average stock market return is about 10% per year, as measured by the S&P 500 index, but that 10% average rate is reduced by inflation. Investors can expect to lose purchasing power of 2% to 3% every year due to inflation.

What is a realistic long term investment return? ›

Many consider a conservative rate of return in retirement 10% or less because of historical returns. Here's what you need to know. Need help planning for retirement? A financial advisor can help you manage your portfolio, figure out how much income you'll need and assist in other important decisions.

What is Warren Buffett's average rate of return? ›

Warren Buffett has attained legendary status in the investment world, thanks to the incredible returns he has racked up over the past nearly-60 years at Berkshire Hathaway (BRK.B) . Buffett has generated average annual returns of 22%, doubling the S&P 500, since he got started in 1965, according to Yahoo Finance.

Will BRK crash when Buffett dies? ›

Buffett said that when he dies, he thinks "the stock would go up tomorrow." Chris Davis, a Berkshire board member and investment manager, explains that a price increase would be because of an attempted value-enhancing conglomerate breakup.

Is Berkshire Hathaway a good long-term investment? ›

NYSE: BRK.

B 1.42%) needs no introduction. The Warren Buffett-managed conglomerate has a stellar track record of growing value for its shareholders. It can make a great long-term investment.

Can you convert Berkshire Hathaway A shares to B shares? ›

Berkshire has two classes of common stock designated Class A Common Stock and Class B Common Stock. Each share of Class A Common Stock is convertible, at the option of the holder, into 30 shares of Class B Common Stock.

What is the fair value of Berkshire Hathaway Class B? ›

As of 2024-05-29, the Fair Value of Berkshire Hathaway Inc (BRK.B) is 847.33 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 403.9 USD, the upside of Berkshire Hathaway Inc is 109.8%.

What is the price prediction for BRK B? ›

Berkshire Hathaway B (BRK.B) Price Targets
Average Price TargetHighest Price TargetUpside to Average Price Target
$490.00$490.0019.92%

Why does BRK B not pay dividends? ›

Despite being a large, mature, and stable company, Berkshire Hathaway does not pay dividends to its investors. Instead, the company chooses to reinvest retained earnings into new projects, investments, and acquisitions.

How much debt does BRK B have? ›

Total debt on the balance sheet as of December 2023 : $128.27 B. According to Berkshire Hathaway 's latest financial reports the company's total debt is $128.27 B. A company's total debt is the sum of all current and non-current debts.

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