Berkshire Hathaway (BOG:BRKBCO) Beneish M-Score: -2.57 (As of Aug. 09, 2026)

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BOG:BRKBCO Berkshire Hathaway Inc BOG:BRKBCO
71 GF Score
Price COP1,667,500.00
GF Value COP1,710,402.81
! 5 Warning Signs
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What is Berkshire Hathaway Beneish M-Score?

Berkshire Hathaway BOG:BRKBCO 71 Beneish M-Score is -2.57 as of Aug. 09, 2026. GuruFocus rates BOG:BRKBCO with a GF Score™ of 71/100 and a GF Value™ of COP1,710,402.81. The stock has 5 warning signs investors should review. Among 400 Insurance companies, Berkshire Hathaway ranks better than 59.75% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.57 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Berkshire Hathaway's Beneish M-Score or its related term are showing as below:

BOG:BRKBCO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94   Med: -2.6   Max: -2.04
Current: -2.57

During the past 13 years, the highest Beneish M-Score of Berkshire Hathaway was -2.04. The lowest was -2.94. And the median was -2.60.

BOG:BRKBCO
71GF Score
Berkshire Hathaway Inc BOG:BRKBCO
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Berkshire Hathaway Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Berkshire Hathaway for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9517+0.528 * 1+0.404 * 0.9999+0.892 * 0.9372+0.115 * 0.9788
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0282+4.679 * -0.024034-0.327 * 0.9497
=-2.68

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was COP190,226,729 Mil.
Revenue was 338379314.869 + 416844338.515 + 458174270.899 + 399020195.356 = COP1,612,418,120 Mil.
Gross Profit was 338379314.869 + 416844338.515 + 458174270.899 + 399020195.356 = COP1,612,418,120 Mil.
Total Current Assets was COP0 Mil.
Total Assets was COP4,602,396,036 Mil.
Property, Plant and Equipment(Net PPE) was COP888,467,135 Mil.
Depreciation, Depletion and Amortization(DDA) was COP52,670,990 Mil.
Selling, General, & Admin. Expense(SGA) was COP140,077,227 Mil.
Total Current Liabilities was COP0 Mil.
Long-Term Debt & Capital Lease Obligation was COP465,443,375 Mil.
Net Income was 37141971.935 + 71813090.712 + 120689540.305 + 49918383.242 = COP279,562,986 Mil.
Non Operating Income was 52989605.32 + 51371477.048 + 57001862.701 + 53852936.488 = COP215,215,882 Mil.
Cash Flow from Operations was 38362151.5 + 41863227.837 + 54039098.301 + 40697404.607 = COP174,961,882 Mil.
 Total Receivables was COP213,272,381 Mil.
Revenue was 343640343.187 + 449896934.46 + 474040905.442 + 452895373.884 = COP1,720,473,557 Mil.
Gross Profit was 343640343.187 + 449896934.46 + 474040905.442 + 452895373.884 = COP1,720,473,557 Mil.
Total Current Assets was COP0 Mil.
Total Assets was COP4,804,660,537 Mil.
Property, Plant and Equipment(Net PPE) was COP927,313,198 Mil.
Depreciation, Depletion and Amortization(DDA) was COP53,741,703 Mil.
Selling, General, & Admin. Expense(SGA) was COP145,366,131 Mil.
Total Current Liabilities was COP0 Mil.
Long-Term Debt & Capital Lease Obligation was COP511,627,619 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(190226729.209 / 1612418119.639) / (213272381.078 / 1720473556.973)
=0.117976 / 0.123961
=0.9517

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1720473556.973 / 1720473556.973) / (1612418119.639 / 1612418119.639)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 888467134.721) / 4602396035.74) / (1 - (0 + 927313197.91) / 4804660537.059)
=0.806956 / 0.806997
=0.9999

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1612418119.639 / 1720473556.973
=0.9372

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(53741703.209 / (53741703.209 + 927313197.91)) / (52670989.523 / (52670989.523 + 888467134.721))
=0.05478 / 0.055965
=0.9788

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(140077227.292 / 1612418119.639) / (145366131.328 / 1720473556.973)
=0.086874 / 0.084492
=1.0282

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((465443375.399 + 0) / 4602396035.74) / ((511627619.128 + 0) / 4804660537.059)
=0.101131 / 0.106486
=0.9497

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(279562986.194 - 215215881.557 - 174961882.245) / 4602396035.74
=-0.024034

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Berkshire Hathaway has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.57 mean?
Berkshire Hathaway (BOG:BRKBCO) has a Beneish M-Score of -2.57 as of Aug. 09, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Berkshire Hathaway and its competitors. According to the industry distribution chart, Berkshire Hathaway ranks #161 out of 400 companies in the Insurance industry, placing it in the top 40.2%.
Is Berkshire Hathaway's Beneish M-Score too high?
Berkshire Hathaway's current Beneish M-Score is -2.57. Based on the distribution chart, Berkshire Hathaway ranks #161 out of 400 companies in the Insurance industry, which is above the industry midpoint. Overall, Berkshire Hathaway has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Berkshire Hathaway's Beneish M-Score compare to AIG and HIG?
According to the Insurance industry distribution chart, Berkshire Hathaway ranks #161 out of 400 companies for Beneish M-Score. This puts Berkshire Hathaway in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Berkshire Hathaway and its competitors. Berkshire Hathaway's current Beneish M-Score is -2.57. 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?
Berkshire Hathaway (BOG:BRKBCO) has a current Beneish M-Score of -2.57. The stock's GF Value™ is COP1,710,402.81, compared to a current price of COP1,667,500.00 — trading 2.5% below its estimated fair value. The current Beneish M-Score is -2.57. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Berkshire Hathaway (BOG:BRKBCO), the current Beneish M-Score is -2.57 as of Aug. 09, 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 (BOG:BRKBCO) Overvalued in 2026?

Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued. The current stock price of COP1,667,500.00 is trading 2.5% below its estimated GF Value™ of COP1,710,402.81.

Key valuation signals for BOG:BRKBCO:

  • Beneish M-Score: -2.57
  • GF Value™: COP1,710,402.81 vs. price of COP1,667,500.00 (2.5% below fair value)
  • GF Score™: 71/100 with 5 warning signs

No single metric tells the full story. See the BOG:BRKBCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Berkshire Hathaway 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 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

Get the complete analysis for BOG:BRKBCO

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

COP1,667,500.00
Price
COP1,710,402.81
GF Value