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Berkshire Hathaway Inc

BRK.A
Yahoo Finance ↗ Investor Relations ↗ SEC Filings ↗

ValueLens Investability Score

56
Mixed Signals
Valuation 48
35% weight
Financial Health 55
25% weight
Earnings Power 70
20% weight
Competitive Moat 53
15% weight
Shareholder Alignment —
5% weight
Holding it back: Brand premium (gross margin) (Competitive Moat), Earnings quality (OCF/NI) (Earnings Power), High P/E vs. peers (Valuation)
Based on 14/16 signals

Overview

$733550.00
$718420.00
$1053.73B
22.84x
N/A
Financial Services
NEW YORK STOCK EXCHANGE, INC.
US
berkshirehathaway.com ↗

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. Originally a textile manufacturer, the company transitioned into a conglomerate starting in 1965 under the management of chairman and CEO Warren Buffett and vice chairman Charlie Munger. Greg Abel succeeded Buffett as CEO at the beginning of 2026. Buffett personally owns 38.4% of the Class A voting shares of Berkshire Hathaway, representing a 15.1% overall economic interest in the company.

Ben Graham Analysis

WEAK (2/6)

Stock passes only 2 of 6 Graham criteria. Limited margin of safety. Requires deep conviction or special situation rationale.

~ Moderate (15-25)
22.84
Graham preferred P/E below 15 for defensive investors
✗ Risky
Earnings Yield: 4.38%
AAA Bond Yield: 5.49%
Gap: -1.11%
Safe if earnings yield exceeds bond yield by 25%+
✗ Trading above by 21.5%
Graham Number: $603562.51
Current Price: $733550
Book Value/Share: 504090.64
Margin: -21.5%
Graham Number = √(22.5 × EPS × Book Value). Buy when price is well below this number.
N/A — Financial Sector
NCAV is not applicable to financial companies. Banks, insurers, and financial conglomerates do not report current assets in the traditional sense — Graham excluded financials from his net-net screen.
✗ Weak (1.0–1.5)
1.23x
Current Assets ÷ Current Liabilities. Graham required ≥ 2.0 for defensive investors — ensures the company can comfortably cover short-term obligations.
✓ Conservative (< 0.5)
0.18x
Total Debt ÷ Total Equity. Graham favored companies with low leverage. Below 0.5 is conservative; above 2.0 signals significant risk.
✓ Positive growth & earnings
TTM EPS: $50396.49
5-Year EPS Growth: 11.79%
Graham required 10+ consecutive years of positive earnings. Consistent, growing earnings signal durable competitive advantage.

⚠ Risk Factors

  • Earnings yield not sufficiently above bond yield
  • Stock price exceeds Graham Number — may be overvalued
  • Current ratio below Graham's 2.0 threshold

About this analysis: Based on Benjamin Graham's margin of safety principles from The Intelligent Investor and Security Analysis. A positive margin of safety indicates the stock may be trading below its estimated intrinsic value.

Financial Health & Signals

Piotroski F-Score, Owner Earnings, Earnings Quality, and Shareholder Yield

Piotroski F-Score

3/6

Poor financial health signals. Proceed with caution.

✓ Positive ROA ROA = 5.5%
✓ Positive Operating Cash Flow OCF = $46.0B
✗ ROA Improving 7.7% → 5.5%
✗ Cash Flow > Net Income Earnings may rely on accruals rather than cash
— Leverage Decreasing Data not available
— Current Ratio Improving Data not available
— No Share Dilution Data not available
✓ Gross Margin Improving 55.9% → 56.9%
✗ Asset Turnover Improving 0.32x → 0.30x
Joseph Piotroski's 9-point scoring system for financial strength. Scores of 8–9 signal strong fundamentals; 0–3 suggest weakness.

Owner Earnings (2025)

$48.5B
Net Income $67.0B + D&A $13.5B − CapEx $20.9B
Buffett's preferred measure: Net Income + Depreciation − CapEx. More honest than reported earnings for capital-intensive businesses.

Earnings Quality (2025)

0.69x OCF / Net Income

Reported earnings significantly exceed cash flow — possible aggressive accounting or large non-cash gains.

Historical Valuation

Where the current valuation sits within its own 5-year range

P/E 14.2x
7.4x 78th percentile 16.2x
P/B 1.4x
1.3x 27th percentile 1.8x

How to read this: These gauges show where the current P/E and P/B ratios fall within their own -year range. A low percentile suggests the stock is historically cheap on that metric; a high percentile suggests it's historically expensive. Compare with the company's growth trajectory to determine if the valuation is justified.

Margin of Safety Target Price

Set your desired margin of safety to calculate a target buy price

$698553.55
Normalized EPS $46570.24 × 15x P/E
$733550.00
5.0% above intrinsic
—
Adjust the slider below
0% Margin of Safety: 25% 50%
No margin 15% 25% 33% 50%
14.25x
15x
11.79%

How to use this: The intrinsic value is calculated as Normalized EPS × a fair P/E of 15 (Graham's benchmark for a conservatively valued company). Slide to apply your desired margin of safety — Graham recommended at least 25–33% — and the target buy price will update. Only consider buying when the market price falls to or below your target.

Reverse DCF Calculator

What growth rate is the market pricing in?

Market-Implied Growth Rate
4.28% CONSERVATIVE

The market expects modest growth. A conservative assumption — this could signal undervaluation if the company outperforms.

$16961.40
$24.4B
5.66%
5% 10% 15% 20%
3.0%
0% 1% 2% 3% 4% 5%
10 years
3 5 10 15 20
Implied Growth Rate — Sensitivity to Discount Rate & Terminal Growth

How to read this: A reverse DCF works backwards from the current stock price to reveal what annual FCF growth rate the market is implicitly assuming. Compare this implied rate against the company's historical growth and your own expectations — if the market expects more growth than you think is realistic, the stock may be overvalued.

ROIC vs. WACC

Return on Invested Capital versus Weighted Average Cost of Capital

✦
Value Creator — ROIC (7.91%) exceeds WACC (5.66%). The company earns more than its cost of capital, beating it in 4 of the past 5 years.
Beta0.21
Cost of Equity5.66%
Cost of Debt6.99%
Effective Tax Rate18.4%
Equity Weight100.0%
Debt Weight0.0%

How to read this: ROIC measures how efficiently a company turns invested capital into profits. WACC is the minimum return investors demand. When ROIC consistently exceeds WACC, management is creating value — a hallmark of a durable competitive advantage (moat). A declining ROIC trending toward WACC may signal moat erosion.

Capital Allocation

How the company has deployed its cash over 5 years

Dividends Share Buybacks Acquisitions CapEx

How to read this: This chart shows how the company allocated capital each fiscal year across four categories. Companies that consistently invest in CapEx and return cash via dividends often signal durable competitive advantages. Heavy share buybacks at elevated valuations can destroy shareholder value.

7 Powers Analysis

Hamilton Helmer's strategic moat framework applied to Berkshire Hathaway Inc (Financial Services)

🛡️
Narrow Moat (Quantitative Only)
2 of 4 measurable powers show strength. Some competitive advantages present, but gaps remain.
📐 Scale Economies Moderate
📊 Quantitative Moderate

Operating margin moved from 11.7% to 12.0% over 5 years (+0.3pp).

🤖 Qualitative —

Awaiting AI analysis

🌐 Network Effects N/A
📊 Quantitative N/A

Requires non-financial data (user counts, engagement metrics) not available in SEC filings.

🤖 Qualitative —

Awaiting AI analysis

♟️ Counter-Positioning N/A
📊 Quantitative N/A

Requires identifying a specific incumbent competitor for comparison — a qualitative judgment.

🤖 Qualitative —

Awaiting AI analysis

🔒 Switching Costs Strong
📊 Quantitative Strong

Gross margin volatility 1.7pp (avg 22.6%) with 8.6% 5Y revenue growth.

🤖 Qualitative —

Awaiting AI analysis

👑 Branding Weak
📊 Quantitative Weak

Gross margin 24.8% vs peers median 43% (0.57x). Inventory turnover 11.5x.

🤖 Qualitative —

Awaiting AI analysis

💎 Cornered Resource Not Detected
📊 Quantitative Not Detected

Insufficient ROA data to evaluate asset efficiency.

🤖 Qualitative —

Awaiting AI analysis

⚙️ Process Power Weak
📊 Quantitative Weak

Avg ROIC 8.8% vs WACC 5.7% (alpha +3.1pp, σ 6.7pp).

🤖 Qualitative —

Awaiting AI analysis

Loading AI qualitative analysis...

How to read this: The 7 Powers framework (Hamilton Helmer) identifies seven empirical sources of lasting business value. Each power shows both a quantitative score (from financial data) and a qualitative score (from AI analysis). The combined signal per power takes the more conservative of the two. Network Effects and Counter-Positioning can only be assessed qualitatively. When AI analysis is available, the overall moat signal reflects all 7 powers combined.

Insider Transactions

Open-market purchases and sales by company insiders (past 12 months)

No open-market insider transactions were reported in the past 12 months. Some companies — particularly those with long-tenured leadership or high share prices — may have very little insider trading activity.