Is BRK.A Stock Undervalued?

A comprehensive valuation analysis of BRK.A (BRK.A) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Fairly Valued

0.0% downside risk

Based on our analysis, BRK.A appears to be fairly valued at the current price of $0.00. Our fair value estimate of $1092565941534.05 suggests downside risk of approximately 0.0%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing BRK.A relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
10.99
Low
P/B Ratio
1.51
Moderate
P/S Ratio
2.31
Moderate
EV/EBITDA
N/A

Understanding the Metrics

  • P/E Ratio: At 10.99x earnings, BRK.A is trading below the typical market average of 15-20x.
  • P/B Ratio: A P/B of 1.51 means investors pay $1.51 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 2.31 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: EBITDA data not available.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of BRK.A stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$0.00
vs
Fair Value Estimate
$1092565941534.05
Implied Return0.0%

BRK.A appears fairly valued, trading within 15% of our intrinsic value estimate. The market price closely reflects the fundamental value we calculate.

Historical Valuation Trends

Looking at BRK.A's valuation history helps us understand whether the current multiples are typical or unusual for this company.

Current P/E Ratio
10.99
5-Year Average P/E
1.87
Currently above average

BRK.A is currently trading at a P/E ratio 488.1% above its 5-year average. This premium valuation could reflect improved growth prospects, but it may also indicate the stock is expensive relative to its historical norms.

Investment Conclusion

Bottom Line

BRK.A (BRK.A) appears fairly valued at $0.00, trading in line with our fundamental analysis. The stock may be appropriate for investors seeking exposure to this sector without significant valuation risk.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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