Berkshire Hathaway Inc. logo BRK-A - Berkshire Hathaway Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY 0
BUY 4
HOLD 5
SELL 1
STRONG
SELL 0
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Moderate
Trading 27.5% below fair value
Current Price $733610.00
Bear Case $708,692.60 3.4% downside ($708,692.60 - $733,610.00) / $733,610.00 = -3.4% ROTCE 8.4% → 1.19x TBV
Fair Value $1,012,418.00 38.0% upside ($1,012,418.00 - $733,610.00) / $733,610.00 = 38.0% ROTCE 11.2% → 1.94x TBV
Bull Case $1,316,143.40 79.4% upside ($1,316,143.40 - $733,610.00) / $733,610.00 = 79.4% ROTCE 12.8% → 2.40x TBV

Adjust Assumptions

11.2%
7.7%

Key Value Driver

ROTCE (11.2%) vs. cost of equity (7.7%)

Implied Market Multiple 1.76x

Plain-Language Summary

With ROTCE of 11.2% vs. 7.7% cost of equity, fair P/TBV is 1.94x on $416843.16 tangible book, implying $1012418.00 per share.

Warnings

⚠ Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
⚠ Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.

Key Risks

  • Book value quality matters as much as level — check loan loss reserves
  • Interest rate sensitivity creates non-linear earnings surprises
  • Insurance reserving is actuarial, not financial — errors emerge slowly