BRK.A Valuation - Is BRK.A Over or Undervalued?

Comprehensive analysis of BRK.A valuation metrics including P/E, P/B, P/S, and EV/EBITDA ratios

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Current Stock Price

$0.00

Market Cap

N/A

Valuation Date

Jan 13, 2026

Valuation Verdict

+

Potentially Undervalued

Based on valuation multiples, BRK.A appears attractively priced. 1 key metrics suggest potential value opportunity.

Key Valuation Metrics

These four fundamental valuation ratios help determine if BRK.A is trading at a fair price relative to its earnings, assets, revenue, and cash flow generation.

P/E Ratio (Price-to-Earnings)
Good
10.99x
Below market average
Investors pay $10.99 for every $1 of annual earnings
P/B Ratio (Price-to-Book)
Good
1.51x
Moderate premium
Stock trades at 1.51x its book value per share
P/S Ratio (Price-to-Sales)
Good
2.31x
Moderate
Market values each $1 of revenue at $2.31
EV/EBITDA
N/A
EBITDA data unavailable

How to Interpret These Metrics

P/E Ratio: Lower P/E often indicates better value, but compare against industry peers. High-growth companies typically have higher P/E ratios. Market average is 15-20x.
P/B Ratio: Values below 1.0 suggest the stock trades below its net asset value, which could indicate undervaluation or fundamental problems. Technology companies often trade at higher P/B ratios.
P/S Ratio: Useful for unprofitable companies or comparing revenue efficiency. Lower is generally better, but high-margin businesses can justify higher P/S ratios.
EV/EBITDA: Accounts for debt and excludes non-cash expenses, making it ideal for comparing companies with different capital structures. Values under 10x often indicate good value.

How BRK.A Compares to Peers

What This Means for Investors

Potential Value Opportunity

BRK.A (BRK.A) currently trades at valuation multiples that appear attractive relative to historical averages and peer comparisons. This could represent a buying opportunity for long-term investors who believe in the company's fundamentals. However, always investigate why the market is pricing the stock this way - there may be legitimate concerns about future growth or profitability.

Bullish Considerations

  • P/E ratio below market average
  • Reasonable price relative to book value
  • Attractive price-to-sales multiple
  • Multiple metrics suggest undervaluation

Bearish Considerations

    Complete Your Analysis

    Valuation is just one piece of the puzzle. Get the complete picture of BRK.A with our comprehensive analysis tools.

    Frequently Asked Questions

    What is BRK.A's P/E ratio and what does it mean?

    BRK.A has a P/E (Price-to-Earnings) ratio of 10.99. This means investors are paying $10.99 for every $1 of annual earnings. A lower P/E generally suggests better value, but it's important to compare against industry peers and growth prospects. The market average P/E is typically 15-20x.

    Is BRK.A stock overvalued or undervalued?

    Based on our analysis of key valuation metrics (P/E, P/B, P/S, EV/EBITDA), BRK.A appears potentially undervalued. Based on valuation multiples, BRK.A appears attractively priced. 1 key metrics suggest potential value opportunity. However, valuation is just one factor to consider alongside growth prospects, competitive position, and market conditions.

    What is a good P/E ratio for BRK.A?

    There's no single "good" P/E ratio as it varies by industry and growth stage. For BRK.A, compare the current P/E of 10.99 against: (1) Industry peers, (2) Historical average P/E for BRK.A, (3) Expected earnings growth rate. High-growth companies often justify higher P/E ratios, while mature companies typically trade at lower multiples.

    How do I use valuation ratios to make investment decisions?

    Valuation ratios are screening tools, not buy/sell signals. Use them to: (1) Compare BRK.A against competitors, (2) Identify potential over/undervaluation, (3) Understand what you're paying for earnings, assets, or sales. Combine valuation analysis with fundamental research, growth prospects, and technical analysis for comprehensive decision-making.

    What is EV/EBITDA and why does it matter?

    EV/EBITDA (Enterprise Value to EBITDA) is N/A for BRK.A. This ratio is useful because it accounts for debt and excludes non-cash expenses, making it better for comparing companies with different capital structures. Lower EV/EBITDA generally indicates better value. It's particularly useful for comparing companies in capital-intensive industries.

    Disclaimer: This valuation analysis is for informational and educational purposes only and should not be considered investment advice. Valuation metrics are just one factor in investment decisions. Always conduct comprehensive research and consult with a qualified financial advisor before making investment decisions. Past performance and current valuations do not guarantee future results.

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