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 46th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Berkshire Hathaway Inc, consider:
The company has produced more trailing twelve month cash flow than 98.43% of its sector Financial Services.
Berkshire Hathaway Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 13.6% 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 13.6% 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 SWKH, RLI, SLF, TIPT, and WLTW.
Warren Buffett, chairman and CEO of Berkshire Hathaway ( BRK.B ), is known as perhaps the greatest value investor of all time, but that doesn't mean he has no use for growth stocks. On the contrary, Buffett has even recently participated in the initial public offering of a red-hot technology stock . The Oracle of Omaha surprised pretty much everyone when Berkshire bought shares in Snowflake ( SNOW ) as the software firm executed the largest software IPO ever in mid-September. But while Snowflake does represent an unusual purchase for Buffett's holding company, it's hardly his only growth play. The Berkshire Hathaway equity portfolio is, in fact, teeming with growth stocks. Its single-largest holding is a high-performance tech equity, and another blue-chip name Buffett has held for more ...
DENVER--(BUSINESS WIRE)--Johns Manville (JM), a global building and specialty products manufacturer and a Berkshire Hathaway Company, broke ground this month on a new production plant in Hillsboro, Texas. The plant, which is projected to be completed by mid-2022, will manufacture polyiso products including ENRGY 3® roof insulation, ProtectoR® HD high density cover board, AP® Foil Faced Foam sheathing and GoBoard® tile backer. These products are preferred in the market due to their high R-value
Occidental Petroleum Corp said on Monday it will pay a $200 million quarterly dividend to Warren Buffett's Berkshire Hathaway Inc in cash instead of common stock, even as the company tries to reduce debt following a plunge in oil prices.