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Berkshire Hathaway (MEX:BRKB) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Berkshire Hathaway Forward PE Ratio Related Terms
Berkshire Hathaway Forward PE Ratio Historical Data
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The historical data trend for Berkshire Hathaway's Forward 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.
Berkshire Hathaway Forward PE Ratio Chart
Berkshire Hathaway Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
13.51
19.34
21.10
17.57
20.92
21.69
21.28
16.21
21.69
22.07
Berkshire Hathaway Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
13.51
15.29
16.29
17.12
19.34
19.88
20.28
21.10
18.90
18.28
18.48
17.57
15.43
12.85
16.61
13.68
95.24
12.58
20.92
23.36
25.91
18.80
21.69
26.81
20.49
18.48
21.28
20.75
21.60
19.05
16.21
18.48
18.38
19.84
21.69
24.38
23.14
22.28
22.07
21.64
MEX:BRKB vs AIG, HIG, ACGL: Forward PE Ratio Comparison
For the Insurance - Diversified subindustry, Berkshire Hathaway's Forward PE Ratio, along with its competitors' market caps and Forward 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 Forward PE Ratio vs Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Berkshire Hathaway (MEX:BRKB) has a Forward PE Ratio of 22.71 as of Jul. 25, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Berkshire Hathaway and its competitors. According to the industry distribution chart, Berkshire Hathaway ranks #249 out of 275 companies in the Insurance industry, placing it in the top 90.5%.
Is Berkshire Hathaway's Forward PE Ratio too high?
Berkshire Hathaway's current Forward PE Ratio is 22.71. The Insurance industry median Forward PE Ratio is 11.83. Berkshire Hathaway's value of 22.71 is 92% above this industry median. Based on the distribution chart, Berkshire Hathaway ranks #249 out of 275 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Berkshire Hathaway has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Berkshire Hathaway's Forward PE Ratio compare to AIG and HIG?
According to the Insurance industry distribution chart, Berkshire Hathaway ranks #249 out of 275 companies for Forward PE Ratio. This places Berkshire Hathaway in the lower half of its industry. The industry median Forward PE Ratio is 11.83. Berkshire Hathaway's value of 22.71 is 92% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Insurance company?
The median Forward PE Ratio among Insurance companies is 11.83, based on 275 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Berkshire Hathaway's current Forward PE Ratio of 22.71 is 92% above 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Berkshire Hathaway and its competitors. For the Insurance industry, the median Forward PE Ratio is 11.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Berkshire Hathaway's current Forward PE Ratio is 22.71. 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 (MEX:BRKB) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN9,269.12, compared to a current price of MXN8,640.00 — trading 6.8% below its estimated fair value. The current Forward PE Ratio is 22.71 and 92% above the Insurance industry median of 11.83. Berkshire Hathaway's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Berkshire Hathaway (MEX:BRKB), the current Forward PE Ratio is 22.71 as of Jul. 25, 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 (MEX:BRKB) Overvalued in 2026?
Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued.
The current stock price of MXN8,640.00 is trading 6.8% below its estimated GF Value™ of MXN9,269.12.
GuruFocus considers Berkshire Hathaway to be Modestly Undervalued.
Key valuation signals for MEX:BRKB:
Forward PE Ratio: 22.71
GF Value™: MXN9,269.12 vs. price of MXN8,640.00 (6.8% below fair value)
Industry Position: 92% above the Insurance median (#249 of 275)
No single metric tells the full story. See the MEX:BRKB 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.
71GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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