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 3.1× TTM sales — a 68% discount to its Financials sector average of 9.6× 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: 22.5×

P/S (TTM)

3.1×

Sector avg: 9.6×

Market Cap

$1.14T

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 $529.51 —
V $401.77 —
MA $615.03 39.3×
BAC $51.60 14.1×
MS $181.14 18.6×
GS $882.11 17.9×

Is the Discount Justified?

October 4, 2026

Berkshire Hathaway Inc. reports negative TTM earnings, making its P/E ratio inapplicable. Its P/S ratio of 2.9x provides a valuation context for this unique conglomerate. Berkshire Hathaway's value is derived from its diverse portfolio of operating businesses and its actively managed investment holdings, which were valued at $299.3 billion across 29 positions in its Q2 2026 13F filing. The portfolio is concentrated in blue-chip equities, with Financial Services representing the largest sector exposure. Strategic adjustments, including increasing stakes in companies like Alphabet and Delta Air Lines, and significant share repurchases, underscore the firm's capital allocation strategy. This blend of stable operating income and a dynamic investment portfolio influences its market perception, even in periods of reported negative earnings.

Sources

Frequently Asked Questions

Is BRK.B overvalued or undervalued?
On trailing-twelve-month sales, BRK.B trades at 3.1x versus a Financials sector average of 9.6x 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

V MA GS JPM BAC MS