What is Berkshire Hathaway Inc. (BRK.B) DCF Fair Value and Intrinsic Value in 2026?

Berkshire Hathaway Inc. (BRK.B) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Berkshire Hathaway Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Berkshire Hathaway Inc. operates in the Financials sector (Insurance - Diversified) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Berkshire Hathaway Inc.'s financial health rating and Piotroski F-Score?

Berkshire Hathaway Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Berkshire Hathaway Inc. (BRK.B) for quarterly SEC filing thesis breaks?

LocalAlpha audits Berkshire Hathaway Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksBRK.B

BRK.B

Berkshire Hathaway Inc. NewFinancial Services / Insurance - DiversifiedINTACT

Berkshire Hathaway Inc., together with its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses. The company provides property, casualty, life, accident, and health insurance and reinsurance; operates railroad systems in North America; generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. It manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; prefabricated and site-built residential homes, flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. In addition, the company provides recreational vehicles, apparel, footwear, toys, jewelry, custom picture framing products, alkaline batteries, logistics services, and professional aviation training and shared aircraft ownership programs; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys. Further, it distributes televisions and information, and grocery and non-food consumer products; franchises and services quick service restaurants; and distributes electronic components. Additionally, it retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and floor coverings; watches, home decor and repair services; sells kitchenware; and motorcycle clothing and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.

Share Price

$510.37

52W: $464.01 - $537.74

DCF Fair Value

$1696.84

+69.9% MoS

Thesis Hub

P/E (TTM)

12.8x

ROIC

24.5%

Operating Margin

32.6%

FCF Yield

6.6%

Debt / Equity

0.17x

Piotroski Score

9/9

Altman Z-Score

4.22

Market Cap

$1092.6B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$1696.84

MOS Buy Target (-25%)

$1272.63

Valuation Overlays: DCF Fair Value ($1696.84) 25% MOS Buy Target ($1272.63) Revised Graham ($1202.44) Graham Number ($21611.70)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$510.37

DCF Fair Value

$1694.85

+69.9% MoS

Starting Free Cash Flow ($M)$71,975M

$100M$71,975M (Reported)$179,938M

Stage 1 Growth (Years 1-5)16.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$236,900M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$878.3B

PV of Terminal Value

$1271.2B

Implied Enterprise Value

$2149.4B

Implied Equity Value

$2386.3B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$83,707	$97,351	$113,219	$131,674	$153,137	$160,028	$167,229	$174,755	$182,619	$190,837
Present Value (PV)	$76,795	$81,939	$87,426	$93,281	$99,529	$95,420	$91,480	$87,704	$84,083	$80,611

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number+97.6% MoS

$21611.70

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $39.75BVPS: $522225.90

Revised Graham Formula+57.6% MoS

$1202.44

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings9.5% Yield

$48.56 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $68.4BYield: 9.5%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-3.7% CAGR (Next 10 Yrs)

At the current price of $510.37, the market is assuming the business will compound Free Cash Flow at -3.7% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil BRK.B with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Berkshire Hathaway Inc. New. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 32.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Berkshire Hathaway Inc. New (BRK.B) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Berkshire Hathaway Inc. New.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Berkshire Hathaway Inc. New has an estimated DCF intrinsic fair value of $1696.84 per share compared to its current market price of $510.37. This represents an estimated 69.9% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $21611.70.