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Berkshire Hathaway Shiller PE Ratio

: 21.31 (As of Today)
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As of today (2020-11-25), Berkshire Hathaway's current share price is $351101.00. Berkshire Hathaway's E10 for the quarter that ended in Sep. 2020 was $16,474.20. Berkshire Hathaway's Shiller PE Ratio for today is 21.31.

NYSE:BRK.A' s Shiller PE Ratio Range Over the Past 10 Years
Min: 16.52   Med: 22.84   Max: 28.33
Current: 21.33

16.52
28.33

During the past years, Berkshire Hathaway's highest Shiller PE Ratio was 28.33. The lowest was 16.52. And the median was 22.84.

NYSE:BRK.A's Shiller PE Ratio is ranked lower than
76% of the 327 Companies
in the Insurance industry.

( Industry Median: 13.53 vs. NYSE:BRK.A: 21.33 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Berkshire Hathaway's adjusted earnings per share data for the three months ended in Sep. 2020 was $18,994.000. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $16,474.20 for the trailing ten years ended in Sep. 2020.

Shiller PE for Stocks: The True Measure of Stock Valuation


Berkshire Hathaway Shiller PE Ratio Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Berkshire Hathaway Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.90 24.72 25.21 25.82 20.54

Berkshire Hathaway Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.87 20.54 20.77 18.15 19.42

Competitive Comparison
* 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.


Berkshire Hathaway Shiller PE Ratio Distribution

* The bar in red indicates where Berkshire Hathaway's Shiller PE Ratio falls into.



Berkshire Hathaway Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Berkshire Hathaway's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=351101.00/16474.2
=21.31

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Berkshire Hathaway's E10 for the quarter that ended in Sep. 2020 is calculated as:

For example, Berkshire Hathaway's adjusted earnings per share data for the three months ended in Sep. 2020 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Sep. 2020 (Change)*Current CPI (Sep. 2020)
=18994/109.8149*109.8149
=18,994.000

Current CPI (Sep. 2020) = 109.8149.

Berkshire Hathaway Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201012 2,655.750 92.914 3,138.813
201103 917.000 94.890 1,061.229
201106 2,072.000 95.319 2,387.108
201109 1,380.000 95.529 1,586.366
201112 1,846.370 95.632 2,120.191
201203 1,966.000 97.075 2,224.006
201206 1,882.000 96.661 2,138.099
201209 2,373.000 97.595 2,670.121
201212 2,757.000 97.158 3,116.171
201303 2,977.000 98.107 3,332.259
201306 2,763.000 98.557 3,078.623
201309 3,074.000 98.536 3,425.882
201312 3,035.360 98.692 3,377.465
201403 2,862.000 100.023 3,142.173
201406 3,889.000 100.520 4,248.600
201409 2,811.000 100.176 3,081.489
201412 2,529.050 98.604 2,816.608
201503 3,143.000 99.824 3,457.581
201506 2,442.000 100.691 2,663.285
201509 5,737.000 100.346 6,278.333
201512 3,333.000 99.957 3,661.690
201603 3,401.000 100.947 3,699.775
201606 3,042.000 101.524 3,290.439
201609 4,379.000 101.988 4,715.059
201612 3,822.850 102.456 4,097.410
201703 2,469.000 103.167 2,628.090
201706 2,592.000 103.278 2,756.064
201709 2,473.000 104.070 2,609.520
201712 19,789.700 104.578 20,780.758
201803 -692.000 105.708 -718.885
201806 7,301.000 106.324 7,540.711
201809 11,280.000 106.695 11,609.853
201812 -15,474.200 106.200 -16,000.920
201903 13,209.000 107.818 13,453.594
201906 8,608.000 108.250 8,732.440
201909 10,119.000 108.577 10,234.368
201912 17,884.000 108.841 18,044.074
202003 -30,653.000 108.173 -31,118.179
202006 16,314.000 109.318 16,388.230
202009 18,994.000 109.815 18,994.000

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Berkshire Hathaway  (NYSE:BRK.A) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Berkshire Hathaway Shiller PE Ratio Related Terms


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