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Berkshire Hathaway (STU:BRH) Shiller PE Ratio : 21.03 (As of Apr. 28, 2024)


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What is Berkshire Hathaway Shiller PE Ratio?

As of today (2024-04-28), Berkshire Hathaway's current share price is €569500.00. Berkshire Hathaway's E10 for the quarter that ended in Dec. 2023 was €27,077.40. Berkshire Hathaway's Shiller PE Ratio for today is 21.03.

The historical rank and industry rank for Berkshire Hathaway's Shiller PE Ratio or its related term are showing as below:

STU:BRH' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.51   Med: 22.67   Max: 29.7
Current: 20.28

During the past years, Berkshire Hathaway's highest Shiller PE Ratio was 29.70. The lowest was 15.51. And the median was 22.67.

STU:BRH's Shiller PE Ratio is ranked worse than
71.19% of 361 companies
in the Insurance industry
Industry Median: 13.13 vs STU:BRH: 20.28

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 Dec. 2023 was €23,832.830. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €27,077.40 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Berkshire Hathaway Shiller PE Ratio Historical Data

The historical data trend for Berkshire Hathaway's Shiller PE Ratio 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 Shiller PE Ratio Chart

Berkshire Hathaway Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.58 18.81 17.97 19.54 18.13

Berkshire Hathaway Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial 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 19.54 17.60 17.95 19.10 18.13

Competitive Comparison of Berkshire Hathaway's Shiller PE Ratio

For the Insurance - Diversified subindustry, Berkshire Hathaway's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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's Shiller PE Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Berkshire Hathaway's Shiller PE Ratio distribution charts can be found below:

* 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
=569500.00/27077.4
=21.03

* 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's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Berkshire Hathaway's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=23832.83/129.4194*129.4194
=23,832.830

Current CPI (Dec. 2023) = 129.4194.

Berkshire Hathaway Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 2,069.226 99.695 2,686.186
201406 2,862.304 100.560 3,683.766
201409 2,181.336 100.428 2,811.046
201412 2,051.060 99.070 2,679.396
201503 2,904.132 99.621 3,772.805
201506 2,175.822 100.684 2,796.808
201509 5,111.667 100.392 6,589.690
201512 3,059.694 99.792 3,968.075
201603 3,054.098 100.470 3,934.089
201606 2,707.380 101.688 3,445.708
201609 3,901.689 101.861 4,957.287
201612 3,624.062 101.863 4,604.472
201703 2,308.515 102.862 2,904.533
201706 2,306.880 103.349 2,888.801
201709 2,074.847 104.136 2,578.613
201712 16,722.296 104.011 20,807.294
201803 -561.212 105.290 -689.829
201806 6,249.656 106.317 7,607.704
201809 9,666.960 106.507 11,746.605
201812 -13,601.822 105.998 -16,607.307
201903 11,689.965 107.251 14,106.305
201906 7,618.080 108.070 9,123.086
201909 9,188.052 108.329 10,976.819
201912 16,095.600 108.420 19,213.069
202003 -27,740.965 108.902 -32,967.581
202006 14,486.832 108.767 17,237.507
202009 16,125.906 109.815 19,004.753
202012 18,501.576 109.897 21,788.286
202103 6,415.920 111.754 7,430.083
202106 15,345.040 114.631 17,324.624
202109 5,849.700 115.734 6,541.403
202112 23,478.165 117.630 25,831.361
202203 3,435.872 121.301 3,665.827
202206 -28,061.198 125.017 -29,049.403
202209 -1,926.070 125.227 -1,990.560
202212 11,586.656 125.222 11,975.056
202303 22,768.118 127.348 23,138.493
202306 22,867.325 128.729 22,990.021
202309 -8,268.088 129.860 -8,240.067
202312 23,832.830 129.419 23,832.830

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  (STU:BRH) 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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Berkshire Hathaway (STU:BRH) Business Description

Address
3555 Farnam Street, Omaha, NE, USA, 68131
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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