Is BRK.A Stock Undervalued?
A comprehensive valuation analysis of BRK.A (BRK.A) examining current multiples, intrinsic value, and comparing to analyst expectations.
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.
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.
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.
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.
More Analysis for BRK.A
Compare with Peers
See how BRK.A stacks up against similar companies
Popular Valuation Analysis
Explore valuation analysis for top stocks
Related: BRK.A Dividend, BRK.A Growth, BRK.A Financial Health
Compare: BRK.A vs AAPL, BRK.A vs MSFT, BRK.A vs GOOGL