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:
Below please find a table outlining a discounted cash flow forecast for BRK.B, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Berkshire Hathaway Inc ranked in the 47th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3.5%. The most interesting components of our discounted cash flow analysis for Berkshire Hathaway Inc ended up being:
As a business, BRK.B is generating more cash flow than 98.43% of positive cash flow stocks in the Financial Services.
Berkshire Hathaway Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 12.95% 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 2%; for context, that number is higher than only 12.95% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TIPT, WLTW, HMN, SLF, and PZN can be thought of as valuation peers to BRK.B, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
The growth stock is looking a lot like a young Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B). Importantly, the stock is a wonderful business trading at a meaningful discount. The post Warren Buffett: Create Generational Wealth With This Young Berkshire Hathaway appeared first on The Motley Fool Canada .
Buy this growth stock, a young version of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), in the year 2020 to create incredible generational wealth! The post Got $3,000? Buy This Growth Stock to Get Rich appeared first on The Motley Fool Canada .
Warren Buffett's holding company Berkshire Hathaway made a surprising new investment in the second quarter. Where does Warren Buffett now see value? The post Warren Buffett’s Berkshire Hathaway Bought This Canadian Stock: Should You? appeared first on The Motley Fool Canada .
Electric automaker BYD Auto Co. Ltd. a unit of BYD Company Limited (OTC: BYDDF ), revealed there is strong demand for its latest luxury sedan at the Beijing auto show, CNBC reported Wednesday. What Happened: The Berkshire Hathaway Inc (NYSE: BRK-A ) (NYSE: BRK-B ) Chairman Warren Buffett-backed electric vehicle company said orders for its “Han” electric cars crossed 40,000 within two months of launch, according to CNBC. The automaker reportedly delivered 4,000 sedans in August. The car is priced between $33,000 to $40,000. A hybrid version is … Full story available on Benzinga.com