BRK.B Berkshire Hathaway Inc

Berkshire Hathaway is Warren Buffett's diversified holding company with major subsidiaries in insurance (GEICO), railroads (BNSF), utilities, and a large portfolio of publicly traded equities. Sector: Financials.

Berkshire Hathaway Inc (BRK.B) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On a capital return basis, ROIC is 11.73%, WACC is 7.51%, and the economic spread is 4.23%. On balance, the economic spread is positive but compressed — adequate for value preservation, less convincing for aggressive compounding. Supporting metrics show ROE at 9.85% and ROA at 5.38%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

On an earnings multiple basis, trailing P/E of 15.46, forward P/E of 21.27. The gap between trailing and forward multiples is not especially wide, suggesting the market is pricing a steadier earnings path rather than a sharp near-term re-rating. A current ratio of 7.07 across the company reflects strong short-term liquidity. Combining multiples and liquidity, the company appears adequately priced for its current earnings trajectory, with balance sheet health providing a degree of downside resilience.

Stripping to unit economics, gross margin sits at 26.15%, operating margin at 26.15%, and free cash flow margin at 6.42%. Gross margins are moderate, reflecting industry conditions where input costs weigh more heavily on revenue. The operating margin reading is constructive, suggesting management teams are managing overhead costs effectively. At this FCF margin level, cash conversion is functional without being a standout feature of the company's quality profile. Read as a whole, the margin picture suggests a business with strengths in parts but no clear margin dominance end-to-end.

Where analyst pricing sits today, the estimated 12-month price change of 24.02%, where consensus targets suggest reasonable upside rather than a step-change rerating. At -27.3%, the projected 12-month EPS growth is a notable negative — it suggests earnings headwinds are building, a dynamic that usually invites multiple compression rather than expansion. Without revenue data to anchor the operational context, analyst targets become the primary directional input — a forward projection rather than a grounded operational read. The durability of the analyst consensus is the central variable here — targets not anchored to strong operational fundamentals tend to be more vulnerable to revision. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The balance of evidence suggests a neutral posture is appropriate — there are merits here, but also reasons for caution that limit conviction at current levels.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.