Highly Regarded

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

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

70% Discount TTM fundamentals · sector averages from covered peers

BRK.B trades at 2.9× TTM sales — a 70% discount to its Financials sector average of 9.7× 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: 24.3×

P/S (TTM)

2.9×

Sector avg: 9.7×

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 $504.14 —
V $379.47 —
MA $589.33 37.7×
BAC $61.96 16.9×
MS $213.41 21.9×
GS $1026.48 20.9×

Is the Discount Justified?

August 30, 2026

Berkshire Hathaway's negative TTM earnings make a P/E comparison impractical, but its P/S of 2.9x reflects its diverse holdings. Recent Q2 2026 results showed robust operating earnings growth and a significant increase in net earnings, largely driven by investment gains. The company became a net buyer of stocks, notably increasing its Alphabet position, and repurchased $4.5 billion of its shares while maintaining substantial cash reserves. Despite underperforming the S&P 500 over the past year due to its historical avoidance of the technology sector, Berkshire's disciplined capital allocation and diversified business model continue to underpin its valuation.

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 9.7x in our coverage — a 70% 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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