Company Analysis
Berkshire Hathaway Inc
BRK.B • Financial Services
AI Summary
Berkshire Hathaway Inc. is currently trading at approximately 81% of its estimated fair value, reflecting a significant undervaluation for long-term value investors. The company's diversified portfolio, strong management score of 7.4/10, and solid balance sheet with a low debt-to-equity ratio of 0.18 support its investment case. Despite a recent EPS decline of 10.5%, its stable ROE of 10.3% indicates resilient earnings power within a discounted valuation framework.
GoodStock Company Score
Score Breakdown
GoodStock Estimated Valuation
Valuation Range vs. Current Price
GoodStock Price Momentum
Momentum Indicators
Berkshire Hathaway Inc
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GoodStockClassification
| Theme | Quality | Momentum | Value |
|---|---|---|---|
| Best in Class | + | + | + |
| Quality at a Price | + | + | - |
| Contrarian | + | - | + |
| Yesterday's News | + | - | - |
| Restructuring | - | + | + |
| Momentum Trap | - | + | - |
| Value Trap | - | - | + |
| Worst in Class | - | - | - |
These investments were once popular but have lost favor due to changing market dynamics or industry trends. While potentially undervalued, they come with increased risk. Investors may explore them for potential rebounds, but careful evaluation of underlying challenges is essential to avoid continued decline.
Earnings History
Last missActual EPS compared with analyst estimates.
| Fiscal Quarter | Actual | Estimate | Surprise |
|---|---|---|---|
|
Q1 2026
Mar 31, 2026
|
$7,889.45 | $8,078.52 | -2.3% |
|
Q4 2025
Dec 31, 2025
|
$7,093.19 | $8,431.76 | -15.9% |
|
Q3 2025
Sep 30, 2025
|
$9,376.15 | $8,945.84 | +4.8% |
|
Q2 2025
Jun 30, 2025
|
$7,759.58 | $7,744.82 | +0.2% |
|
Q1 2025
Mar 31, 2025
|
$6,703.41 | $7,430.29 | -9.8% |
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Financial Ratios
AI Financial Ratios Summary
The company exhibits a robust Earnings Per Share (EPS) of 50,396.49, indicating strong profitability on a per-share basis, while its P/E ratio of 14.48 suggests the stock may be modestly valued relative to its earnings. The Return on Equity (ROE) of 10.31% reflects moderate efficiency in generating profit from shareholders' equity, supported by a low Debt-to-Equity ratio (0.18), which indicates conservative leverage. However, the Interest Coverage Ratio of 0.57 raises concerns about the company’s ability to meet interest obligations, potentially constraining growth potential. When combined with a Quick Ratio slightly above 1, the company's liquidity appears sufficient for short-term needs, but the weak interest coverage could hinder expansion or lead to refinancing challenges, ultimately impacting the stock’s capacity to reach its full potential.
- $50.4 K
- 14.48
- 10.31%
- 0.18%
- 0.57
- $958 K
- 1.08%
- $1050 B
Operational Ratios
AI Operational Ratios Summary
The company's operating margin of 12.52% and gross margin of 24.81% indicate moderate operational efficiency, with room for improvement in cost management relative to revenue. The net profit margin of 19.31% suggests effective expense control that supports profitability, although the negative free cash flow CAGR (-1.32%) signals potential challenges in generating consistent cash flow, despite a healthy CAPEX growth of 9.97%, which may support future growth initiatives. Overall, these ratios suggest a company with steady profitability and investment in growth, but caution is warranted regarding its cash flow sustainability.
- 12.52%
- 24.81%
- 19.31%
- 5.96%
- $0.0
- 0.0%
- -1.32%
- 9.97%
Valuation Ratios
AI Valuation Ratios Summary
The company's high Book Value Per Share ($497,171.86) and substantial cash per share ($35,950.8) suggest strong intrinsic value and liquidity; however, the negative Price to SAP ratio (-31.53) indicates that the company's stock price is significantly below its value per share, potentially signaling undervaluation. Additionally, the negative PEG ratio (-1.38) may reflect challenges in earnings growth expectations, but combined with positive valuation metrics, it suggests the stock might be undervalued, offering a potential investment opportunity for those willing to accept associated risks.
- $775 K
- $685 K
- $45.8 K
- -31.53%
- -1.38
- $44
- $497 K
- 36 K