Highly Regarded

Is Berkshire Hathaway Inc. (BRK.B) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Financials sector peers in our coverage

68% Discount TTM fundamentals · sector averages from covered peers

BRK.B trades at 2.9× TTM sales — a 68% discount to its Financials sector average of 9.2× in our coverage.

BRK.B has negative trailing-twelve-month earnings, so a P/E ratio isn't meaningful — we compare on price-to-sales instead.

The Numbers

P/E (TTM)

—

Sector avg: 23.7×

P/S (TTM)

2.9×

Sector avg: 9.2×

Market Cap

$1.09T

EPS (TTM): —

Revenue (TTM)

$372.13B

Net income: $67.74B

Financials Peer Comparison

How BRK.B's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
BRK.B This page $506.66 —
V $357.21 —
MA $533.36 34.1×
BAC $59.89 16.4×
MS $222.08 22.8×
GS $1054.88 21.4×

Is the Discount Justified?

July 6, 2026

Berkshire Hathaway's valuation is presented with negative TTM earnings, making a P/E ratio inapplicable. Its P/S ratio is 2.9x. The company reported Q1 2026 adjusted operating earnings rose 17.7% year-over-year to $11.3 billion, with adjusted operating revenue increasing 4.4% to $93.7 billion. Net income for Q1 2026 was $10.1 billion, up 120% year-over-year, with profit margin at 11%. The company's cash pile reached a record $397 billion. However, full-year 2025 EPS and net income were down from FY 2024, and profit margins decreased. Revenue is forecast to grow 3.3% annually over the next two years, which is below the Diversified Financial industry forecast of 5.1%. The negative TTM earnings likely reflect GAAP accounting for investment gains/losses, as the underlying operating businesses demonstrate positive and growing profitability.

Sources

Frequently Asked Questions

Is BRK.B overvalued or undervalued?
On trailing-twelve-month sales, BRK.B trades at 2.9x versus a Financials sector average of 9.2x in our coverage — a 68.2% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing BRK.B with its own Financials peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Financials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Financials peers

MA GS MS V BAC JPM