P/E Ratio

Berkshire Hathaway’s P/E Ratio of 14.2x means that for every $1 of the company’s earnings per share, investors are currently paying $14.20 — a common tool used to gauge whether a stock is cheap or expensive relative to its profit.

This figure sits just below the Financial Services sector median of 14.3x, placing the stock at the 49th percentile among its peers, indicating a valuation nearly identical to the typical company in its industry. No year-over-year or quarter-over-quarter changes are available because the metric has only a single historical data point, so no trend direction can be assessed. With the P/E standing close to the sector median and no trend to indicate momentum, the level alone offers neither a clear valuation discount nor a premium, implying limited near-term price risk from overvaluation but also no obvious buying opportunity on valuation alone. This metric supports the overall NEUTRAL verdict because the P/E is essentially in line with the sector average, providing no strong reason to overweight or underweight the stock based on this measure.

Frequently Asked Questions

Closest Sector Peers