Berkshire Hathaway Inc (NYSE:BRK.B) (2024)

Berkshire Hathaway Inc (NYSE:BRK.B) (1)

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Berkshire Hathaway Inc (NYSE:BRK.B) (2)

Berkshire Hathaway Inc

NYSE:BRK.B

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open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/brk.b/summary">Summary open = false, 5000)":class="open && 'disabled'"class="item active"href="https://www.alphaspread.com/security/nyse/brk.b/dcf-valuation">DCF Valuation open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/brk.b/relative-valuation">Relative Valuation open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/brk.b/analyst-estimates">Wall St Estimates open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/brk.b/profitability">Profitability open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/brk.b/solvency">Solvency open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/brk.b/financials/income-statement">Financials open = false, 5000)":class="open && 'disabled'"class="item"href="https://www.alphaspread.com/security/nyse/brk.b/discount-rate">Discount Rate

Price:403.15 USD0.19% Market Closed

Updated:Mar 10, 2024

Section:

DCF Value

This DCF valuation model was created byBerkshire Hathaway Inc (NYSE:BRK.B) (3)Alpha Spreadand was last updated onMar 10, 2024.

Estimated DCF Value of oneBerkshire Hathaway Inc (NYSE:BRK.B) (4)BRK.Bstock is223.16USD.Compared to the current market price of 403.15 USD, the stock isOvervalued by 45%.

BRK.BDCF Value

Base Case

223.16USD

Overvaluation 45%

DCF Value

Price

Berkshire Hathaway Inc (NYSE:BRK.B) (5)

Worst Case

Base Case

Best Case

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model

Base Case Scenario

Berkshire Hathaway Inc (NYSE:BRK.B) (6)

The present value of cash flows over the next 5 years amounts to -1B USD.The present value of the terminal value is 48.8B USD.The total present value equals 47.8B USD.

DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value

Capital Structure

Berkshire Hathaway Inc (NYSE:BRK.B) (7)

Present Value47.8B USD
+Cash & Equivalents38BUSD
+Investments536.3BUSD
Firm Value622.1BUSD
-Debt128.3BUSD
-Minority Interest9.5BUSD
Equity Value484.3BUSD
/Shares Outstanding2.2B
BRK.B DCF Value223.16USD

Overvalued by 45%

Valuation Analysis

Sensitivity Analysis

DCF Value Sensitivity Analysis

Berkshire Hathaway Inc (NYSE:BRK.B) (8)

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials

Financials used in DCF Calculation

Berkshire Hathaway Inc (NYSE:BRK.B) (9)

Revenue

371.9B392.9B

Operating Income

49.8B62.5B

FCFF

-3.5B5.3B

See Also

SummaryBRK.B intrinsic value, competitors valuation, and company profile.
DCF ValuationBRK.B stock valuation using Discount Cash Flow valuation method.
Relative ValuationBRK.B stock valuation using valuation multiples.
Wall Street EstimatesBRK.B price targets and financial estimates made by Wall st analysts.
Profitability AnalysisDetailed analysis of the company's profitability.
Solvency AnalysisAnalysis of the financial position and solvency of the company.
FinancialsIncome Statement, Balance Sheet, Cash Flow Statement.
Discount RateBRK.B stock discount rate: cost of equity and WACC.

Summary

DCF Valuation

Relative Valuation

Wall Street Estimates

Profitability Analysis

Solvency Analysis

Financials

Discount Rate

Discover More

What is the DCF value of one BRK.B stock?

Estimated DCF Value of oneBerkshire Hathaway Inc (NYSE:BRK.B) (10)BRK.Bstock is223.16USD.Compared to the current market price of 403.15 USD, the stock isOvervalued by 45%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation.Utilizing the DCF operating model, Berkshire Hathaway Inc (NYSE:BRK.B) (11) Berkshire Hathaway Inc's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at47.8B USD.

2. DCF Value Calculation.The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of223.16 USDper share.

';return tooltip;}// dcfCalculator.renderValueDecompositionChart = function (){if (this.valueDecompositionChart){this.valueDecompositionChart.destroy();this.valueDecompositionChart = false;}this.valueDecompositionChart = this.createValueDecompositionChart();}dcfCalculator.createValueDecompositionChart = function (){varcObj = this;varcolumns = cObj.createValueDecompositionChartColumns();return Highcharts.chart('dcf-calculator-value-decomposition-chart', {credits: {enabled: false},chart: {type: 'waterfall',spacing: 0},plotOptions: {waterfall: {borderWidth: 0,borderRadius: 3,},series: {dataLabels: {enabled: true,inside: false,crop: false,formatter: function () {vardivider = getDivider(this.y);vardividerText = getDividerShortText(divider);varvalue = accounting.formatNumber(this.y / divider) + dividerText;if (!this.point.isSum)value = ((this.y < 0) ? '' : '+') + value;return value;},style: {fontWeight: 'normal',color: '#7B8794'}}}},title: {text: null},xAxis: {type: 'category',tickColor: 'transparent',lineColor: 'transparent',labels: {step: 1,style: {fontSize: '0.85rem',fontWeight: 300,color: '#3E4C59'}}},yAxis: {title: {text: null},labels: {enabled: false},visible: false},legend: {enabled: false},tooltip: {shared: false,backgroundColor: 'rgba(0, 0, 0, 0)',borderWidth: 0,borderRadius: 0,padding: 0,shadow: false,shape: 'rect',useHTML: true,formatter: function () {return cObj.createValueDecompositionChartTooltip(this);},style: {fontSize: '0.95rem'}},series: [{data: columns}]});}dcfCalculator.createValueDecompositionChartColumns = function (){varcObj = this;varcolumns = new Array;vardates = cObj.model.cashFlowsDates;varnHistoricalCashFlows = cObj.model.nHistoricalCashFlows;for (var i = 0; i < cObj.cashFlowsPv.length; i++){varcf = cObj.cashFlowsPv[i];vardate = dates[nHistoricalCashFlows + i];columns.push({name: date,color: (cf > 0) ? '#079A82' : '#EF5350',y: Math.round(cObj.cashFlowsPv[i])});}columns.push({name: 'Growth Period Value',color: '#627D98',isSum: true});columns.push({name: 'Terminal Value',color: (cObj.tvPv > 0) ? '#079A82' : '#EF5350',y: Math.round(cObj.tvPv),});columns.push({name: 'Total Present Value',color: '#627D98',isSum: true,});return columns;}dcfCalculator.createValueDecompositionChartTooltip = function (obj){varcolor = obj.color;varitem = obj.key;vardivider = getDivider(obj.y);vardividerText = getDividerShortText(divider);varvalue = accounting.formatNumber(obj.y / divider) + dividerText;vartooltip = '';if ((!obj.point.options.isSum) && (obj.y > 0))value = '+' + value;tooltip += '

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' + item + ':${value} USD

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';return tooltip;}// dcfCalculator.renderSensitivityResults = function (fieldName, sensitivityResults) {this.sensitivityChart = this.createSensitivityChart(fieldName, sensitivityResults);if (this.sensitivityChart)this.renderSensitivityInfoOnChart(sensitivityResults);}dcfCalculator.destroySensitivityChart = function () {if (this.sensitivityChart){this.sensitivityChart.destroy();this.sensitivityChart = false;}}dcfCalculator.createSensitivityChart = function (fieldName, sensitivityResults) {varcObj = this;return Highcharts.chart('sensitivity-analysis-chart', {credits: {enabled: false},title: {text: null},chart: {type: 'column',backgroundColor: 'transparent',zooming: {mouseWheel: false}},legend: {enabled: false},plotOptions: {column: {crisp: false,borderWidth: 0,borderRadius: 2}},xAxis: {tickColor: 'transparent',lineColor: 'transparent',startOnTick: false,endOnTick: false,labels:{enabled: true,reserveSpace: true,style: {fontSize: '0.85rem',fontWeight: 300,color: '#3E4C59'},formatter: function () {return accounting.formatNumber(this.value) + '%'}},},yAxis: {title: {text : null},gridLineColor: '#E4E7EB',gridLineDashStyle: 'Dash',startOnTick: false,endOnTick: false,opposite: true,labels: {enabled: true,reserveSpace: true,style: {fontSize: '0.85rem',fontWeight: 300,color: '#3E4C59'},formatter: function () {if (this.value == 0)return '';return accounting.formatNumber(this.value) + ' USD'}},min: 0},tooltip: {outside: true,backgroundColor: 'rgba(0, 0, 0, 0)',borderWidth: 0,borderRadius: 0,padding: 0,shadow: false,shared: true,shape: 'rect',hideDelay: 50,useHTML: true,formatter: function () {return cObj.createSensitivityChartTooltip(this, fieldName);},style: {fontSize: '0.95rem'}},rangeSelector: {enabled: false},scrollbar: {enabled: false},navigator: {enabled: false},series: [{name: 'Intrinsic Value',data: sensitivityResults,dataGrouping: {enabled: false,},zones: [{value: 403.15,color: '#EF5350'}, {color: '#26A69A'}]}],responsive: {rules: [{condition: {maxWidth: 991},chartOptions: {yAxis: {labels: {enabled: false}}}}]}});}dcfCalculator.createSensitivityChartTooltip = function (obj, fieldName){vartooltip = '';varintrinsicValue = accounting.formatNumber(obj.y, countDecimals(obj.y)) + ' USD';varunderOverValuation, underOverValuationText;if (403.15 > obj.y){if (obj.y > 0)underOverValuation = (403.15 - obj.y) / 403.15;elseunderOverValuation = 1;underOverValuationText =accounting.formatNumber(underOverValuation * 100) +'% overvalued';}else{underOverValuation = 1 - (403.15 / obj.y);underOverValuationText =accounting.formatNumber(underOverValuation * 100) +'% undervalued';}tooltip += '

';tooltip += '

';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '';tooltip += '
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Intrinsic value:' + intrinsicValue + '

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${underOverValuationText}

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${underOverValuationText}

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';return tooltip;}dcfCalculator.renderSensitivityInfoOnChart = function (sensitivityResults){this.renderStockPriceOnSensitivityChart();}dcfCalculator.renderStockPriceOnSensitivityChart = function (){this.sensitivityChart.yAxis[0].addPlotLine({dashStyle: 'ShortDot',value: 403.15,width: 1,zIndex: 3,color: '#1F2933',label: {y: -2,x: -10,useHTML: true,text: '

Last Price: 403.15 USD

',align: 'right'}});}dcfCalculator.startExclusiveAnimator = function (selector, callback){varcObj = this;if (cObj.animatorStates[selector] === undefined)cObj.animatorStates[selector] = 'init';if (cObj.animatorStates[selector] === 'init'){cObj.animatorStates[selector] = 'started';new Animator($(`#${selector}`), () => {cObj.animatorStates[selector] = 'init';callback();});}}//

Berkshire Hathaway Inc (NYSE:BRK.B) (2024)
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