Berkshire HathawayXSWX:BRK 74 Return-on-Tangible-Equity is 6.64% as of Mar. 2026, which is 59% below its 10-year median of 16.01. GuruFocus rates XSWX:BRK with a GF Score™ of 74/100 and a GF Value™ of CHF432.07 (Fairly Valued). The stock has 5 warning signs investors should review. Among 498 Insurance companies, Berkshire Hathaway ranks worse than 54.22% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Berkshire Hathaway's annualized net income for the quarter that ended in Mar. 2026 was CHF31,826 Mil. Berkshire Hathaway's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF479,305 Mil. Therefore, Berkshire Hathaway's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.64%.
The historical rank and industry rank for Berkshire Hathaway's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:BRK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.91 Med: 16.01 Max: 29.78
Current: 12.6
During the past 13 years, Berkshire Hathaway's highest Return-on-Tangible-Equity was 29.78%. The lowest was -5.91%. And the median was 16.01%.
XSWX:BRK's Return-on-Tangible-Equity is ranked worse than 54.22% of 498
companies
in the Insurance industry
Industry Median: 13.515
vs XSWX:BRK: 12.60
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Berkshire Hathaway Return-on-Tangible-Equity Related Terms
Berkshire Hathaway Return-on-Tangible-Equity Historical Data
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The historical data trend for Berkshire Hathaway's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Insurance - Diversified subindustry, Berkshire Hathaway's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.64% mean?
Berkshire Hathaway (XSWX:BRK) has a Return-on-Tangible-Equity of 6.64% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Berkshire Hathaway and its competitors. This is 59% below median its historical median of 16.01. According to the industry distribution chart, Berkshire Hathaway ranks #270 out of 498 companies in the Insurance industry, placing it in the top 54.2%.
Is Berkshire Hathaway's Return-on-Tangible-Equity too high?
Berkshire Hathaway's current Return-on-Tangible-Equity of 6.64% is 59% below median its 10-year median of 16.01. The Insurance industry median Return-on-Tangible-Equity is 13.52. Berkshire Hathaway's value of 6.64% is 50.9% below this industry median. Based on the distribution chart, Berkshire Hathaway ranks #270 out of 498 companies in the Insurance industry, which is below the industry midpoint. 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 Return-on-Tangible-Equity compare to AIG and HIG?
According to the Insurance industry distribution chart, Berkshire Hathaway ranks #270 out of 498 companies for Return-on-Tangible-Equity. This places Berkshire Hathaway in the lower half of its industry. The industry median Return-on-Tangible-Equity is 13.52. Berkshire Hathaway's value of 6.64% is 50.9% below this benchmark. While the company's 10-year median is 16.01 vs. the industry median of 13.52, 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 Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 498 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Berkshire Hathaway's current Return-on-Tangible-Equity of 6.64% is 50.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Berkshire Hathaway and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Berkshire Hathaway's current Return-on-Tangible-Equity is 6.64%, which is 59% below median its own 10-year median of 16.01. 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 CHF432.07, compared to a current price of CHF409.75 — trading 5.2% below its estimated fair value. The current Return-on-Tangible-Equity is 6.64%, which is 59% below median its 10-year median of 16.01 and 50.9% below the Insurance industry median of 13.52. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Berkshire Hathaway (XSWX:BRK), the current Return-on-Tangible-Equity is 6.64% 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 CHF409.75 is trading 5.2% below its estimated GF Value™ of CHF432.07.
GuruFocus considers Berkshire Hathaway to be Fairly Valued.
Key valuation signals for XSWX:BRK:
Return-on-Tangible-Equity: 6.64% (59% below median its 10-year median of 16.01)
GF Value™: CHF432.07 vs. price of CHF409.75 (5.2% below fair value)
Industry Position: 50.9% below the Insurance median (#270 of 498)
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
Get the complete analysis for XSWX:BRK
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