Berkshire Hathaway Inc.
BRK-B
$477.35
-0.24%
Berkshire Hathaway Inc. is a diversified financial services conglomerate primarily engaged in insurance, freight rail transportation, and utilities. It is defined by its unique structure of wholly-owned subsidiaries and a long-term value investing philosophy, positioning it as a fortress of financial stability and operational diversity.…
BRK-B
Berkshire Hathaway Inc.
$477.35
Investment Opinion: Should I buy BRK-B Today?
Based on a synthesis of the available data, BRK-B warrants a 'Hold' rating for most investors. The company's fortress balance sheet, strong cash flow, and reasonable trailing valuation metrics provide a solid foundation and downside protection. However, the recent revenue decline, earnings volatility, negative price momentum, and high forward P/E ratio suggest limited near-term upside catalysts. The investment case hinges on patience for the diversified business model to navigate current cycles and for earnings to stabilize, making it more suitable for existing shareholders or very long-term, value-oriented investors rather than those seeking near-term growth.
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BRK-B 12-Month Price Forecast
The analysis leans neutral due to the tension between high-quality fundamentals and recent operational softness. The strong financial position provides a margin of safety, but the stock lacks a clear near-term catalyst for outperformance, likely leading to range-bound trading.
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 $620.56 and implied upside of +30.0% versus the current price.
Average Target
$620.56
1 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
1
covering this stock
Price Range
$382 - $621
Analyst target range
No sufficient analyst coverage available. The provided data includes only one analyst's estimates for future EPS and revenue, but no consensus target price or ratings distribution from Wall Street analysts is present. Recent institutional ratings from a single firm (UBS) consistently show a 'Buy' action, but this does not constitute a broad analyst consensus.
Bulls vs Bears: BRK-B Investment Factors
Berkshire Hathaway presents a classic value and stability investment with strong financials and a reasonable valuation, offset by recent revenue weakness and a negative price trend. The stock's low volatility and cash generation are positives, but earnings volatility and lack of analyst consensus add uncertainty.
Bullish
- Strong Financial Health: Low debt-to-equity of 0.19 and high current ratio of 6.75 provide stability.
- Reasonable Valuation: Trailing P/E of 16.2 and P/B of 1.5 are modest for a quality conglomerate.
- Robust Cash Generation: TTM free cash flow of $25B supports financial flexibility and investments.
- Diversified Business Model: Insurance, rail, and utilities provide operational resilience across cycles.
Bearish
- Recent Revenue Decline: Q4 2025 revenue fell 7.1% YoY, indicating potential top-line pressure.
- Weak Price Trend: Stock down 3.4% over 6 months and underperforming S&P 500 over 1 year.
- Earnings Volatility: Net margin dropped from 32.4% in Q3 to 20.4% in Q4 2025.
- Limited Analyst Coverage: No broad consensus target price, reducing visibility on near-term catalysts.
BRK-B Technical Analysis
The stock's overall trend over the past six months has been negative, with the price declining from approximately $496 in early October 2025 to $479.20 on March 31, 2026, representing a 6-month decline of 3.37%. Short-term performance shows weakness, with the stock down 5.10% over the past month and 4.67% over the past three months, underperforming the S&P 500 (SPY) which declined 5.25% and 4.63% over the same periods, respectively. The current price of $479.11 sits near the lower end of its 52-week range of $455.19 to $542.07, approximately 11.6% above the low and 11.6% below the high. The stock exhibits a low beta of 0.688, indicating lower volatility than the broader market, but its relative strength versus the S&P 500 has been negative over the past year at -25.95. The price action shows a significant peak in late November 2025 around $514, followed by a general downtrend with a notable sell-off in late March 2026 to a low near $468. The recent close of $479.20 represents a slight recovery from that low, but the stock remains in a downtrend channel based on the provided data.
Beta
0.69
0.69x market volatility
Max Drawdown
-14.9%
Largest decline past year
52-Week Range
$455-$542
Price range past year
Annual Return
-11.2%
Cumulative gain past year
| Period | BRK-B Return | S&P 500 |
|---|---|---|
| 1m | -0.8% | -3.6% |
| 3m | -3.9% | -4.0% |
| 6m | -4.3% | -2.0% |
| 1y | -11.2% | +16.2% |
| ytd | -3.9% | -3.8% |
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BRK-B Fundamental Analysis
Revenue for Q4 2025 was $94.23 billion, showing a year-over-year decline of 7.13% from Q4 2024's $101.47 billion. Profitability is mixed; the Q4 2025 net income was $19.20 billion, resulting in a net margin of 20.37%, which is a slight increase from the 19.41% margin in Q4 2024, but down significantly from the 32.43% net margin reported in Q3 2025. Financial health appears strong with a low debt-to-equity ratio of 0.19 and a robust current ratio of 6.75, indicating ample liquidity. The company generated $11.19 billion in operating cash flow for Q4 2025 and has a trailing twelve-month free cash flow of $25.04 billion, supporting its financial flexibility. Operational efficiency metrics show a Return on Equity (ROE) of 9.33% and a Return on Assets (ROA) of 5.11%. The company's asset turnover and operational margins have fluctuated quarter-to-quarter, reflecting the cyclical and diverse nature of its business segments, which include insurance underwriting results and investment gains.
Quarterly Revenue
$94.2B
2025-12
Revenue YoY Growth
-0.07%
YoY Comparison
Gross Margin
+0.23%
Latest Quarter
Free Cash Flow
$25.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BRK-B Overvalued?
Given the company's substantial positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 16.19, while the forward P/E is 22.01 based on analyst estimates. The Price-to-Book (P/B) ratio is 1.51, and the Price-to-Sales (P/S) ratio is 2.92. Peer comparison data is not available in the provided inputs. The valuation appears reasonable relative to historical metrics, with the P/E ratio being lower than the forward estimate, suggesting the market may be pricing in lower future earnings growth or reflecting recent quarterly earnings volatility.
PE
16.2x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -52x~62x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.0x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risks for BRK-B stem from its operational and market exposure. Financially, the company exhibits strong health with low debt and high liquidity, but recent quarterly revenue declines and significant earnings volatility (net margin dropping from 32.4% to 20.4% between Q3 and Q4 2025) highlight sensitivity to economic cycles and investment gains. The diversified business model across insurance, rail, and utilities mitigates some sector-specific risks but exposes the company to broad macroeconomic headwinds, interest rate changes, and catastrophic insurance losses.
Market risks are evident in the stock's technical performance, having underperformed the S&P 500 by approximately 26% over the past year and trading near the lower end of its 52-week range. The lack of a broad Wall Street analyst consensus reduces visibility on near-term catalysts and fair value. Furthermore, the forward P/E of 22.0, which is higher than the trailing P/E of 16.2, implies the market is pricing in a recovery in earnings growth; failure to meet these expectations could lead to multiple compression.
FAQ
Key risks include economic sensitivity leading to further revenue declines, as seen in the 7.1% YoY drop in Q4 2025. Earnings are volatile, with net margin falling sharply last quarter. The stock has significantly underperformed the S&P 500 over the past year. Additionally, the success of its large investment portfolio is tied to market performance, and the company faces execution risk on future acquisitions.
The 12-month outlook is for range-bound trading with a neutral bias. The base case (50% probability) sees a price range of $480 to $515, aligning with current valuation multiples. The bull case (30%) targets up to the 52-week high of $542 on strong earnings, while the bear case (20%) could see a retest of the 52-week low near $455 if operational pressures worsen.
BRK-B appears fairly valued based on current metrics. The trailing P/E of 16.2 and Price-to-Book of 1.51 are reasonable for a company of its quality and stability. However, the forward P/E of 22.0 is higher, indicating the market expects earnings growth. If that growth does not materialize, the stock could be considered slightly overvalued on a forward basis.
BRK-B is a good buy for long-term, value-oriented investors seeking stability and capital preservation, but less ideal for those seeking short-term growth. The company's strong financial health (D/E 0.19, Current Ratio 6.75) and reasonable trailing P/E of 16.2 provide a solid foundation. However, recent revenue declines and earnings volatility suggest investors should be patient and have a multi-year horizon.
BRK-B is far more suitable for long-term investment. Its low-beta, value-oriented philosophy, and cyclical business segments are designed to compound wealth over decades, not quarters. The recent negative price trend and lack of near-term catalysts make it a poor candidate for short-term trading. Investors should have a minimum horizon of 3-5 years.