Berkshire Hathaway Inc

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BRK.A : NYSE : Financial
$241780.0 up 1800.0 | 0.74%
Today's Range: 239950.0 - 242210.0
Avg. Daily Volume: 400.0
12/06/16 - 3:39 PM ET

Financial Analysis


BERKSHIRE HATHAWAY's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has increased by 8.45% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)59068.058989.0
EBITDA ($mil)13814.016925.0
EBIT ($mil)11568.014937.0
Net Income ($mil)7198.09428.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)92903.074372.0
Total Assets ($mil)604038.0545468.0
Total Debt ($mil)101798.084911.0
Equity ($mil)269264.0248283.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin23.3928.69
EBITDA Margin23.3828.69
Operating Margin19.5825.32
Sales Turnover0.360.38
Return on Assets3.854.17
Return on Equity8.649.16
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.270.25
Interest Expense1043.0865.0
Interest Coverage11.0917.27


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)2466.052465.03
Div / share0.00.0
EPS2.923.82
Book value / share109.19100.72
Institutional Own % n/a n/a
Avg Daily Volume367.0284.0

Valuation


BUY. BERKSHIRE HATHAWAY's P/E ratio indicates a significant premium compared to an average of 12154.68 for the Diversified Financial Services industry and a significant premium compared to the S&P 500 average of 25.22. For additional comparison, its price-to-book ratio of 2189.52 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 1039.04. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, BERKSHIRE HATHAWAY proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BRK.A 25325.21 Peers 12154.68   BRK.A 18135.06 Peers 8830.03

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BRK.A is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BRK.A is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BRK.A 19.84 Peers 12.02   BRK.A 0.23 Peers 0.13

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

BRK.A is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BRK.A trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BRK.A 2189.52 Peers 1039.04   BRK.A 2.16 Peers 1.16

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BRK.A is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

BRK.A is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BRK.A 2707.49 Peers 1284.76   BRK.A 5.06 Peers 5.16

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BRK.A is trading at a significant premium to its industry.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

BRK.A is keeping pace with its peers on the basis of sales growth.

 

 

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