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Berkshire HathawayBSP:BERK34 +2.28%67 Debt-to-EBITDA is 0.87 as of Jun. 2026, which is 22% below its 10-year median of 1.12. GuruFocus rates BSP:BERK34 with a GF Score™ of 67/100 and a GF Value™ of R$140.99 (Fairly Valued). The stock has 4 warning signs investors should review. Among 324 Insurance companies, Berkshire Hathaway ranks better than 56.79% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Berkshire Hathaway's Debt-to-EBITDA or its related term are showing as below:
BSP:BERK34'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -8.05 Med: 1.12 Max: 5.53
Current: 1.02
During the past 13 years, the highest Debt-to-EBITDA Ratio of Berkshire Hathaway was 5.53. The lowest was -8.05. And the median was 1.12.
BSP:BERK34's Debt-to-EBITDA is ranked better than 56.79% of 324
companies
in the Insurance industry
Industry Median: 1.2
vs BSP:BERK34: 1.02
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Berkshire Hathaway Debt-to-EBITDA Related Terms
Berkshire Hathaway Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Berkshire Hathaway's Debt-to-EBITDA 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.
BSP:BERK34 vs AIG, HIG, ACGL: Debt-to-EBITDA Comparison
For the Insurance - Diversified subindustry, Berkshire Hathaway's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Berkshire Hathaway (BSP:BERK34) has a Debt-to-EBITDA of 0.87 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Berkshire Hathaway. This is 22% below median its historical median of 1.12. According to the industry distribution chart, Berkshire Hathaway ranks #140 out of 324 companies in the Insurance industry, placing it in the top 43.2%.
Is Berkshire Hathaway's Debt-to-EBITDA too high?
Berkshire Hathaway's current Debt-to-EBITDA of 0.87 is 22% below median its 10-year median of 1.12. The Insurance industry median Debt-to-EBITDA is 1.20. Berkshire Hathaway's value of 0.87 is 27.5% below this industry median. Based on the distribution chart, Berkshire Hathaway ranks #140 out of 324 companies in the Insurance industry, which is above the industry midpoint. Overall, Berkshire Hathaway has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Berkshire Hathaway's Debt-to-EBITDA compare to AIG and HIG?
According to the Insurance industry distribution chart, Berkshire Hathaway ranks #140 out of 324 companies for Debt-to-EBITDA. This puts Berkshire Hathaway in the upper half of its industry. The industry median Debt-to-EBITDA is 1.20. Berkshire Hathaway's value of 0.87 is 27.5% below this benchmark. While the company's 10-year median is 1.12 vs. the industry median of 1.20, Berkshire Hathaway has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Insurance company?
The median Debt-to-EBITDA among Insurance companies is 1.20, based on 324 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Berkshire Hathaway's current Debt-to-EBITDA of 0.87 is 27.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Berkshire Hathaway. For the Insurance industry, the median Debt-to-EBITDA is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Berkshire Hathaway's current Debt-to-EBITDA is 0.87, which is 22% below median its own 10-year median of 1.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Berkshire Hathaway stock overvalued right now?
Based on GuruFocus' analysis, Berkshire Hathaway (BSP:BERK34) is currently considered Fairly Valued. The stock's GF Value™ is R$140.99, compared to a current price of R$134.92 — trading 4.3% below its estimated fair value. The current Debt-to-EBITDA is 0.87, which is 22% below median its 10-year median of 1.12 and 27.5% below the Insurance industry median of 1.20. Berkshire Hathaway's overall GF Score™ is 67/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Berkshire Hathaway (BSP:BERK34), the current Debt-to-EBITDA is 0.87 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Berkshire Hathaway (BSP:BERK34) Overvalued in 2026?
Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued.
The current stock price of R$134.92 is trading 4.3% below its estimated GF Value™ of R$140.99.
GuruFocus considers Berkshire Hathaway to be Fairly Valued.
Key valuation signals for BSP:BERK34:
Debt-to-EBITDA: 0.87 (22% below median its 10-year median of 1.12)
GF Value™: R$140.99 vs. price of R$134.92 (4.3% below fair value)
Industry Position: 27.5% below the Insurance median (#140 of 324)
No single metric tells the full story. See the BSP:BERK34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 its operations to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the companies that make up its manufacturing, service, and retailing operations (which include Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis. Berkshire generated close to $371.4 billion in operating revenue in during 2025.
67GF Score
Get the complete analysis for BSP:BERK34
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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