Berkshire Hathaway Stock May Be 33.8% Undervalued, Simply Wall St Estimates

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Summary · why it matters

Berkshire Hathaway shares may trade about 33.8% below an intrinsic value estimate of $774 per share, according to a Simply Wall St analysis using an Excess Returns model. The model applies a cost of equity of $39,918.67 per share to a stable EPS of $63,627.66 per share, yielding an excess return of $23,709.00 per share, and points to a fair value well above the current price around $512. On a price-to-earnings basis, the stock trades at 15.2 times, below a tailored fair P/E of 17.7 times and a broader peer average of 24.0 times, while screening as undervalued in five of six valuation tests. The completed acquisition of Taylor Morrison adds a larger homebuilding platform, though integration and housing cycle risks remain key factors for realizing that value.

Impact on assets 2

Energy Transition & Power Demand▲
Berkshire Hathaway Inc
BRK-B
▲ PositiveCapitalrelevance

Simply Wall St analysis estimates stock is 33.8% undervalued, with fair value $774 vs current ~$512, and trades below peer P/E.

Consumer Discretionary▲
Taylor Morn Home
TMHC
± MixedCapitalrelevance

Acquired by Berkshire Hathaway; integration and housing cycle risks mentioned as key factors for realizing value.