Berkshire Hathaway Inc's fundamentals are relatively healthy, and its growth potential is high.Its valuation is considered fairly valued, ranking 7 out of 8 in the Consumer Goods Conglomerates industry.Institutional ownership is very high.Over the past month, multiple analysts have rated it as Hold, with the highest price target at 769586.00.In the medium term, the stock price is expected to remain stable.Despite a weak stock market performance over the past month, the company shows strong fundamentals and technicals.The stock price is trading sideways between the support and resistance levels, making it suitable for range-bound swing trading.
Berkshire Hathaway Inc. is a renowned American multinational conglomerate holding firm with its headquarters situated in Omaha, Nebraska. Initially a textile manufacturer, the company began its transformation into a conglomerate in 1965, under the leadership of chairman and CEO Warren Buffett, along with vice chairman Charlie Munger. Greg Abel currently oversees the majority of the firm's investments and has been designated as Buffett's successor. Buffett personally holds 38.4% of Berkshire Hathaway's Class A voting shares, equating to a 15.1% overall economic stake in the organization.
Often likened to an investment fund, Berkshire Hathaway has delivered a remarkable compound annual growth rate (CAGR) of 19.8% in shareholder returns from 1965, the year Buffett took control, through to 2023, outperforming the S&P 500's 10.2% CAGR in the same period. Nevertheless, for the decade ending in 2023, Berkshire Hathaway's CAGR for shareholders was 11.8%, slightly trailing the S&P 500's 12.0% CAGR. Notably, from 1965 to 2023, the company's stock price exhibited negative performance in merely eleven years. In August 2024, Berkshire Hathaway achieved the distinction of becoming the eighth publicly traded company in the U.S. and the first non-technology firm valued at over $1 trillion based on market capitalization.
Berkshire Hathaway holds the 5th position in the Fortune 500 list of the largest corporations in the United States by total revenue and ranks 9th on the Fortune Global 500. It is one of the ten largest constituents of the S&P 500 and ranks among the largest employers across the nation. The Class A shares of Berkshire Hathaway command the highest per-share price of any public company globally, reaching $700,000 in August 2024, attributable to the board of directors' historical opposition to stock splits.
The current financial score of Berkshire Hathaway Inc is 7.42, ranking 6 out of 8 in the Consumer Goods Conglomerates industry. Its financial status is stable, and its operating efficiency is average. Its latest quarterly revenue reached 94.97B, representing a year-over-year increase of 2.13%, while its net profit experienced a year-over-year increase of 17.31%.
Key Metrics
The current valuation score of Berkshire Hathaway Inc is 8.31, ranking 3 out of 8 in the Consumer Goods Conglomerates industry. Its current P/E ratio is 15.22, which is 565.31% below the recent high of 101.27 and 305.22% above the recent low of -31.24.
The current earnings forecast score of Berkshire Hathaway Inc is 6.00, ranking 6 out of 8 in the Consumer Goods Conglomerates industry. The average price target is 721000.00, with a high of 892758.00 and a low of 695000.00.
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.
The current price momentum score of Berkshire Hathaway Inc is 6.69, ranking 8 out of 8 in the Consumer Goods Conglomerates industry. Currently, the stock price is trading between the resistance level at 745902.40 and the support level at 695091.20, making it suitable for range-bound swing trading.
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The current institutional shareholding score of Berkshire Hathaway Inc is 3.00, ranking 7 out of 8 in the Consumer Goods Conglomerates industry. The latest institutional shareholding proportion is 34.05%, representing a quarter-over-quarter decrease of 0.87%. The largest institutional shareholder is The Vanguard, holding a total of 3.85K shares, representing 0.74% of shares outstanding, with 3.85% increase in holdings.
The U.S. Dollar Index is currently in a neutral state, which has a neutral effect on the Consumer Goods Conglomerates domestic-focused industry. The Dollar Index (DXY) measures the value of the U.S. dollar against a basket of major currencies, including the euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc. The current risk assessment score of Berkshire Hathaway Inc is 9.87, ranking 2 out of 8 in the Consumer Goods Conglomerates industry. The company's beta value is 0.71. This indicates that the stock tends to underperform the index during upward trending markets but experiences smaller declines during downward trending markets.
