Berkshire Hathaway Inc.BRK-B
NYQ • Financial Services
$496.86
P/E
12.64
PEG
0.03
FCF Yield
2.4%
Rev Growth YoY
+41.5% YoY
Gross Margin
99.0%
Health Score
9/10
D/E Ratio
0.17
Confidence
HIGH
Business Snapshot
Berkshire Hathaway is a diversified financial services conglomerate generating revenue across insurance operations, railroad and utility assets, and a portfolio of wholly owned operating businesses that span manufacturing, retail, and services. As one of the largest insurance groups globally, it holds a dominant competitive position characterised by substantial scale, a fortress balance sheet, and a reputation for disciplined capital allocation. The company is a mega-cap with a market capitalisation of $1.06 trillion and TTM revenue of $117.89 billion, placing it among the most valuable publicly traded entities in the world. What sets Berkshire apart is its unique structure: a parent holding company with a diversified portfolio of operating subsidiaries plus a significant equity securities portfolio, managed with a long-term, capital-preservation mindset under a stable leadership framework.
Financial Health
Gross margin sits at 99.0%, reflecting the capital-light nature of insurance float economics, while net margin of 22.3% demonstrates strong conversion of revenue to bottom-line profit. The balance sheet is conservative, with debt/equity of just 0.17x and a current ratio of 1.34x, indicating ample short-term liquidity and minimal leverage risk relative to sector peers...
Risk Assessment
EARNINGS QUALITY — The company beat analyst estimates in only 2 of the last 4 quarters, indicating management guidance has historically missed expectations half the time.
VALUATION DIVERGENCE — The DCF estimate of $558.08 relies on assumptions flagged as highly sensitive, where a 0.5% change in terminal growth moves the value by 15-25%, introducing meaningful uncertainty around the intrinsic value.
VALUATION — The extraordinary earnings growth of 457.6% is heavily distorted by one-off items, making the trailing P/E of 12.64x potentially understate the true ongoing earnings multiple.
TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin sits at 99.0%, reflecting the capital-light nature of insurance float economics, while net margin of 22.3% demonstrates strong conversion of revenue to bottom-line profit. The balance sheet is conservative, with debt/equity of just 0.17x and a current ratio of 1.34x, indicating ample short-term liquidity and minimal leverage risk relative to sector peers. Free cash flow generation is robust at $25.04 billion, though the resulting FCF yield of 2.4% is modest given the company's massive scale and mature growth profile. Overall, the combination of near-zero net leverage, positive and substantial cash generation, and high margins points to an exceptionally resilient financial position with significant capacity for reinvestment, opportunistic acquisitions, and continued shareholder returns without any near-term risk of dilution or financial distress.
EARNINGS QUALITY — The company beat analyst estimates in only 2 of the last 4 quarters, indicating management guidance has historically missed expectations half the time. VALUATION DIVERGENCE — The DCF estimate of $558.08 relies on assumptions flagged as highly sensitive, where a 0.5% change in terminal growth moves the value by 15-25%, introducing meaningful uncertainty around the intrinsic value. VALUATION — The extraordinary earnings growth of 457.6% is heavily distorted by one-off items, making the trailing P/E of 12.64x potentially understate the true ongoing earnings multiple. TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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