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Berkshire Hathaway (BUE:BRKB) Cyclically Adjusted PB Ratio : 2.51 (As of May. 24, 2024)


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What is Berkshire Hathaway Cyclically Adjusted PB Ratio?

As of today (2024-05-24), Berkshire Hathaway's current share price is ARS23192.00. Berkshire Hathaway's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was ARS9,234.46. Berkshire Hathaway's Cyclically Adjusted PB Ratio for today is 2.51.

The historical rank and industry rank for Berkshire Hathaway's Cyclically Adjusted PB Ratio or its related term are showing as below:

BUE:BRKB' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.51   Med: 2.06   Max: 2.52
Current: 2.15

During the past years, Berkshire Hathaway's highest Cyclically Adjusted PB Ratio was 2.52. The lowest was 1.51. And the median was 2.06.

BUE:BRKB's Cyclically Adjusted PB Ratio is ranked worse than
79.18% of 413 companies
in the Insurance industry
Industry Median: 1.19 vs BUE:BRKB: 2.15

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Berkshire Hathaway's adjusted book value per share data for the three months ended in Mar. 2024 was ARS335,001,101.538. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is ARS9,234.46 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Berkshire Hathaway Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Berkshire Hathaway's Cyclically Adjusted PB Ratio 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.

* Premium members only.

Berkshire Hathaway Cyclically Adjusted PB Ratio Chart

Berkshire Hathaway Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.08 1.92 2.11 1.91 1.98

Berkshire Hathaway Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.83 1.97 1.97 1.98 2.23

Competitive Comparison of Berkshire Hathaway's Cyclically Adjusted PB Ratio

For the Insurance - Diversified subindustry, Berkshire Hathaway's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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's Cyclically Adjusted PB Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Berkshire Hathaway's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Berkshire Hathaway's Cyclically Adjusted PB Ratio falls into.



Berkshire Hathaway Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Berkshire Hathaway's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=23192.00/9234.46
=2.51

* 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.

Berkshire Hathaway's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Berkshire Hathaway's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=335001101.538/131.7762*131.7762
=335,001,101.538

Current CPI (Mar. 2024) = 131.7762.

Berkshire Hathaway Quarterly Data

Book Value per Share CPI Adj_Book
201406 1,157,671.752 100.560 1,517,047.960
201409 1,216,896.594 100.428 1,596,749.196
201412 1,250,034.189 99.070 1,662,715.798
201503 1,296,173.491 99.621 1,714,544.581
201506 1,360,566.775 100.684 1,780,724.818
201509 1,420,523.349 100.392 1,864,611.734
201512 2,012,658.985 99.792 2,657,722.962
201603 2,298,215.716 100.470 3,014,321.968
201606 2,236,887.770 101.688 2,898,751.871
201609 2,443,108.565 101.861 3,160,616.555
201612 2,719,370.119 101.863 3,517,953.683
201703 2,745,344.571 102.862 3,517,045.866
201706 3,014,268.452 103.349 3,843,370.115
201709 3,284,516.227 104.136 4,156,321.827
201712 4,043,354.578 104.011 5,122,702.303
201803 4,255,161.214 105.290 5,325,592.535
201806 5,428,866.084 106.317 6,728,902.138
201809 8,416,353.697 106.507 10,413,195.677
201812 8,012,436.421 105.998 9,961,031.533
201903 8,816,887.252 107.251 10,833,104.721
201906 10,459,770.741 108.070 12,754,281.653
201909 13,627,755.120 108.329 16,577,344.509
201912 15,625,792.173 108.420 18,991,935.209
202003 14,236,107.851 108.902 17,226,394.452
202006 16,829,935.133 108.767 20,390,180.671
202009 19,623,278.716 109.815 23,547,634.253
202012 23,358,561.764 109.897 28,009,027.622
202103 26,450,631.091 111.754 31,189,498.156
202106 29,487,137.017 114.631 33,897,369.002
202109 30,941,727.898 115.734 35,230,552.428
202112 34,601,325.232 117.630 38,762,650.135
202203 37,093,538.044 121.301 40,296,827.627
202206 37,794,482.884 125.017 39,837,952.463
202209 43,165,259.858 125.227 45,422,924.989
202212 54,372,747.977 125.222 57,218,743.956
202303 68,734,024.080 127.348 71,124,185.137
202306 89,511,805.520 128.729 91,630,891.841
202309 127,175,980.468 129.860 129,053,072.262
202312 140,563,554.945 129.419 143,123,296.269
202403 335,001,101.538 131.776 335,001,101.538

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Berkshire Hathaway  (BUE:BRKB) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Berkshire Hathaway Cyclically Adjusted PB Ratio Related Terms

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Berkshire Hathaway (BUE:BRKB) Business Description

Address
3555 Farnam Street, Omaha, NE, USA, 68131
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 these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.

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