Berkshire Hathaway, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska.
BRK.B Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Berkshire Hathaway Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Berkshire Hathaway Inc ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 5.5%. The most interesting components of our discounted cash flow analysis for Berkshire Hathaway Inc ended up being:
The company has produced more trailing twelve month cash flow than 98.44% of its sector Financial Services.
Berkshire Hathaway Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 10.51% of tickers in our DCF set.
BRK.B's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 10.51% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Berkshire Hathaway Inc? See FFG, Y, CINF, L, and FCFS.
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