Is BRK-B undervalued?

AlphaMadera's AlphaVal page computes Berkshire Hathaway Inc.'s fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag BRK-B as undervalued, fairly valued, or overvalued.

What is Berkshire Hathaway Inc.'s fair value?

Fair value for BRK-B is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value BRK-B?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from BRK-B's most recent reported fundamentals.

BRK-B - Berkshire Hathaway Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $465.50 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Fair Value Moderate

Trading 22.3% below fair value

Current Price $490.91

Bear Case $442.55 9.9% downside ($442.55 - $490.91) / $490.91 = -9.9% ROTCE 8.4% → 1.20x TBV

Fair Value $632.20 28.8% upside ($632.20 - $490.91) / $490.91 = 28.8% ROTCE 11.2% → 1.97x TBV

Bull Case $821.86 67.4% upside ($821.86 - $490.91) / $490.91 = 67.4% ROTCE 12.8% → 2.43x TBV

Adjust Assumptions

Return on Tangible Equity

11.2%

Cost of Equity

7.6%

Key Value Driver

ROTCE (11.2%) vs. cost of equity (7.6%)

Implied Market Multiple 1.77x

Plain-Language Summary

Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $465.50 from 10 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $632.20 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.

ℹ Wall Street's average price target is $465.50 (from 10 analysts). Our estimate is 45% above the consensus -- consider that gap carefully.

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