The Berkshire Hathaway PE ratio is a widely used metric to gauge the valuation of Warren Buffett's conglomerate. It's calculated by dividing the stock's current price by its earnings per share.
Berkshire Hathaway's PE ratio is often compared to the S&P 500's PE ratio to determine if the company is overvalued or undervalued relative to the market.
The company's PE ratio has fluctuated over the years, ranging from a low of 13.1 in 2008 to a high of 24.7 in 2020.
Investors use the PE ratio to make informed decisions about buying or selling Berkshire Hathaway shares.
Additional reading: How to Find Growth Rate of Company
Financial Data
The price-to-earnings ratio (PE ratio) of Berkshire Hathaway (BRK.B) is a crucial metric for investors. It's calculated by dividing the stock's current price by its earnings per share.
Berkshire Hathaway's PE ratio is significantly higher than the S&P 500's average. This indicates that investors are willing to pay a premium for a stake in the company.
For your interest: Brk B Stock Earnings
The company's earnings per share have been steadily increasing over the years, which contributes to its high PE ratio. This is a result of Warren Buffett's successful investment strategies.
Berkshire Hathaway's financial data shows a strong track record of profitability. The company has consistently generated high returns on equity and assets.
The PE ratio of Berkshire Hathaway is closely watched by investors and analysts. It provides valuable insight into the company's valuation and future growth prospects.
For your interest: Apple Company Growth Rate
Comparison
BRK.B's price to earnings (P/E) ratio of 17.14 is higher than the Financial Services sector average of 14.43.
In comparison, BRK.B's P/E ratio is 19% higher than the sector average.
The industry average is not explicitly stated, but BRK.B's P/E ratio is higher than it.
BRK.B's P/E ratio is lower than its peers' average, but the exact difference is not specified.
This comparison suggests that BRK.B's stock is relatively more expensive than its peers and the Financial Services sector average.
BRK.B's P/E ratio of 17.14 is a significant factor to consider when evaluating the stock's value.
For another approach, see: Current Ratio Higher
Calculations and Methods
To calculate the PE ratio, you simply divide the latest stock price by the earnings per share for the last 12 months.
The PE ratio is calculated using the latest stock price and the earnings per share for the trailing twelve months (TTM).
As of today, Berkshire Hathaway's share price is $500.03.
The company's earnings per share for the TTM ending Jun 2025 is $29.17.
Berkshire Hathaway's price to earnings ratio for today is 17.14, which is calculated by dividing the stock price by the TTM EPS.
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.
Suggestion: Brk B Earnings per Share
Time Periods and Averages
The current PE ratio of BRK.B is under its 3, 5, and 10-year averages.
The 3-year average PE ratio for BRK.B stock is 19.45, which is a significant benchmark for investors.
Over the last 5 years, the average PE ratio for BRK.B stock is 17.37, giving you a sense of the stock's performance over a longer period.
The highest quarterly PE ratio in the last ten years has been 125.26, which occurred in the Dec 2018 quarter, and it's worth noting how much that number stands out compared to the other averages.
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