Berkshire Hathaway Inc.BRK-B
NYQ • Financial Services
$498.66
P/E
14.74
PEG
—
FCF Yield
2.3%
Rev Growth YoY
-9.3% YoY
Gross Margin
24.8%
Health Score
7/10
D/E Ratio
0.18
Confidence
MEDIUM
Business Snapshot
Berkshire Hathaway operates as a diversified conglomerate, with core insurance and reinsurance operations generating substantial float that funds a portfolio of wholly owned businesses (railroad, utilities, manufacturing) and publicly traded equities. It holds a dominant competitive position in the insurance industry, supported by a fortress balance sheet and disciplined capital allocation under long-standing management. With a market capitalisation of $1.08 trillion and trailing twelve-month revenue of $92.07 billion, the company is a mega-cap financial services giant. Its defining characteristic is the ability to deploy insurance float into value-oriented acquisitions and equity investments, creating a unique cash-flow engine that is largely uncorrelated with underwriting cycles.
Financial Health
Gross margin stands at 24.8% with net margin at 19.3%, reflecting a moderate cost structure but strong bottom-line conversion on insurance and investment income. The balance sheet is conservative: debt-to-equity ratio of 0.18x indicates minimal leverage, and the current ratio of 1.34x suggests adequate short-term liquidity...
Risk Assessment
- VALUATION — Current price of $498.66 is significantly above the Python DCF estimate of $215.93, implying a premium of over 130% to intrinsic value based on a simplified model with high terminal growth sensitivity.
- REVENUE DECELERATION — Revenue declined 9.3% YoY and 17.4% QoQ, indicating accelerating contraction in the core business.
- EARNINGS MOMENTUM — Net income fell 48.7% year-over-year, a severe earnings deterioration that cannot be dismissed as cyclical.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
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