This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Berkshire Hathaway's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $202.133. Berkshire Hathaway's 10-Year median PS Ratio is 1.9106. Therefore, the Median PS Value for today is $386.20.
As of today (2024-04-18), Berkshire Hathaway's share price is $399.89. Berkshire Hathaway's Median PS Value is $386.20. Therefore, Berkshire Hathaway's Price to Median PS Value for today is 1.04.
The historical rank and industry rank for Berkshire Hathaway's Median PS Value or its related term are showing as below:
BRK.B'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.93 Med: 1.12 Max: 1.58
Current: 1.04
During the past 13 years, the highest Price to Median PS Value of Berkshire Hathaway was 1.58. The lowest was 0.93. And the median was 1.12.
BRK.B's Price-to-Median-PS-Value is ranked worse than 58.5% of 306
companies
in the Insurance industry
Industry Median: 0.95
vs BRK.B: 1.04
Berkshire Hathaway Median PS Value Historical Data
The historical data trend for Berkshire Hathaway's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Berkshire Hathaway Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Median PS Value
225.41
209.69
282.89
195.51
383.12
Berkshire Hathaway Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Median PS Value
195.51
242.08
341.91
345.55
383.12
Competitive Comparison
For the Insurance - Diversified subindustry, Berkshire Hathaway's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Berkshire Hathaway Price-to-Median-PS-Value Distribution
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Price-to-Median-PS-Value falls into.
Berkshire Hathaway Median PS Value Calculation
Berkshire Hathaway's Median PS Value for today is calculated as
10-Year Median PS Ratio is 1.9106.
Berkshire Hathaway's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $202.133.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Berkshire Hathaway (NYSE:BRK.B) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Berkshire Hathaway's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
399.89
/
386.20
=
1.04
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Berkshire Hathaway Median PS Value Related Terms
Thank you for viewing the detailed overview of Berkshire Hathaway's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Berkshire Hathaway (Berkshire Hathaway) Business Description
Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.
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