Berkshire HathawayXSWX:BRK +0.12%74 Pretax Margin % is 13.38% as of Mar. 2026, which is 32% below its 10-year median of 19.77. GuruFocus rates XSWX:BRK with a GF Score™ of 74/100 and a GF Value™ of CHF428.50 (Fairly Valued). The stock has 5 warning signs investors should review. Among 506 Insurance companies, Berkshire Hathaway ranks better than 77.87% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Berkshire Hathaway Pretax Margin % Related Terms
Berkshire Hathaway Pretax Margin % Historical Data
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The historical data trend for Berkshire Hathaway's Pretax Margin % 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.
XSWX:BRK vs AIG, HIG, ACGL: Pretax Margin % Comparison
For the Insurance - Diversified subindustry, Berkshire Hathaway's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Pretax Margin % 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.
Berkshire Hathaway (XSWX:BRK) has a Pretax Margin % of 13.38% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Berkshire Hathaway and its competitors. This is 32% below median its historical median of 19.77. According to the industry distribution chart, Berkshire Hathaway ranks #112 out of 506 companies in the Insurance industry, placing it in the top 22.1%.
Is Berkshire Hathaway's Pretax Margin % too high?
Berkshire Hathaway's current Pretax Margin % of 13.38% is 32% below median its 10-year median of 19.77. The Insurance industry median Pretax Margin % is 12.02. Berkshire Hathaway's value of 13.38% is 11.3% above this industry median. Based on the distribution chart, Berkshire Hathaway ranks #112 out of 506 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Berkshire Hathaway has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Berkshire Hathaway's Pretax Margin % compare to AIG and HIG?
According to the Insurance industry distribution chart, Berkshire Hathaway ranks #112 out of 506 companies for Pretax Margin %. This places Berkshire Hathaway in the top 22% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 12.02. Berkshire Hathaway's value of 13.38% is 11.3% above this benchmark. While the company's 10-year median is 19.77 vs. the industry median of 12.02, Berkshire Hathaway has consistently been above 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 Pretax Margin % for an Insurance company?
The median Pretax Margin % among Insurance companies is 12.02, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Berkshire Hathaway's current Pretax Margin % of 13.38% is 11.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Berkshire Hathaway and its competitors. For the Insurance industry, the median Pretax Margin % is 12.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Berkshire Hathaway's current Pretax Margin % is 13.38%, which is 32% below median its own 10-year median of 19.77. 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 (XSWX:BRK) is currently considered Fairly Valued. The stock's GF Value™ is CHF428.50, compared to a current price of CHF399.56 — trading 6.8% below its estimated fair value. The current Pretax Margin % is 13.38%, which is 32% below median its 10-year median of 19.77 and 11.3% above the Insurance industry median of 12.02. Berkshire Hathaway's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Berkshire Hathaway (XSWX:BRK), the current Pretax Margin % is 13.38% as of Mar. 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 (XSWX:BRK) Overvalued in 2026?
Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued.
The current stock price of CHF399.56 is trading 6.8% below its estimated GF Value™ of CHF428.50.
GuruFocus considers Berkshire Hathaway to be Fairly Valued.
Key valuation signals for XSWX:BRK:
Pretax Margin %: 13.38% (32% below median its 10-year median of 19.77)
GF Value™: CHF428.50 vs. price of CHF399.56 (6.8% below fair value)
Industry Position: 11.3% above the Insurance median (#112 of 506)
No single metric tells the full story. See the XSWX:BRK 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.
74GF Score
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