Berkshire Hathaway Inc., headquartered in Omaha, NE, is a diversified multinational holding company with full ownership of well-known brands such as GEICO, Duracell, Fruit of the Loom and Dairy Queen. Founded in 1998, the company engages in the insurance, freight rail transportation and utility businesses worldwide. It also has significant holdings in many other publicly traded companies, including Coca-Cola, Bank of America, American Express and Apple. With a workforce of 383,000 employees, Berkshire Hathaway is a major player in the insurance and investment industry.
Berkshire Hathaway reported a net loss of $12.8 billion for the third quarter of 2023, primarily due to accounting rules that require unrealized gains and losses in the company's equity portfolio to be included in net income. The company's operating earnings, which exclude the impact of market changes, rose by 41% for the quarter compared to the previous year. Analysts expect the company's fourth-quarter revenue to be heavily impacted by gains or losses from the investment portfolio, with operating earnings showing a 20% decline outside of the insurance segment. For 2024, the company is expected to grow at similar rates, focusing on long-term value and operational performance.
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Over the last 12 months, Berkshire Hathaway's shares have ranged in value from as little as $317.41 up to $430. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Berkshire Hathaway's is 0.888. This would suggest that Berkshire Hathaway's shares are less volatile than average (for this exchange).
Historical closes compared with the last close of $402.1
| 1 week (2024-04-18) | -0.74% |
|---|---|
| 1 month (2024-03-27) | -4.38% |
| 3 months (2024-01-25) | 4.33% |
| 6 months (2023-10-26) | 21.22% |
| 1 year (2023-04-27) | 22.39% |
| 2 years (2022-04-27) | 21.38% |
| 3 years (2021-04-27) | 47.32% |
| 5 years (2019-04-25) | 87.70% |
The gauge below shows real-time ratings that are based on 26 popular indicators such as moving averages, for specific time periods. It's not a recommendation but is simply technical analysis that can form part of your research.
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Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value. Check out the Berkshire Hathaway P/E ratio, PEG ratio and EBITDA
Berkshire Hathaway's current stock price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 9x. In other words, Berkshire Hathaway stocks trade at around 9x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of November 09, 2023 (20.44). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Berkshire Hathaway's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 10.0559. Higher PEG ratios such as this can be interpreted as meaning the shares offer worse value given the current rate of growth.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Berkshire Hathaway's future profitability. By accounting for growth, it could also help you if you're comparing the stock prices of multiple high-growth companies.
Berkshire Hathaway's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $135.7 billion.
The EBITDA is a measure of a Berkshire Hathaway's overall financial performance and is widely used to measure a its profitability.
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