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Berkshire Hathaway (LTS:0HN0) Cyclically Adjusted PB Ratio : 2.23 (As of Jun. 12, 2024)


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What is Berkshire Hathaway Cyclically Adjusted PB Ratio?

As of today (2024-06-12), Berkshire Hathaway's current share price is $611500.00. Berkshire Hathaway's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was $274,727.00. Berkshire Hathaway's Cyclically Adjusted PB Ratio for today is 2.23.

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

LTS:0HN0' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.51   Med: 2.06   Max: 2.52
Current: 2.16

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.

LTS:0HN0's Cyclically Adjusted PB Ratio is ranked worse than
79.81% of 416 companies
in the Insurance industry
Industry Median: 1.15 vs LTS:0HN0: 2.16

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 $397,627.413. 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 $274,727.00 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
=611500.00/274727
=2.23

* 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)
=397627.413/131.7762*131.7762
=397,627.413

Current CPI (Mar. 2024) = 131.7762.

Berkshire Hathaway Quarterly Data

Book Value per Share CPI Adj_Book
201406 142,483.545 100.560 186,714.732
201409 144,542.583 100.428 189,661.352
201412 146,185.731 99.070 194,446.941
201503 146,963.444 99.621 194,399.421
201506 149,734.967 100.684 195,974.778
201509 151,082.538 100.392 198,314.426
201512 155,501.737 99.792 205,340.567
201603 157,368.921 100.470 206,403.860
201606 160,009.368 101.688 207,353.923
201609 163,782.899 101.861 211,883.724
201612 171,542.036 101.863 221,917.912
201703 178,072.554 102.862 228,127.772
201706 182,815.882 103.349 233,101.036
201709 187,434.943 104.136 237,185.598
201712 211,749.400 104.011 268,274.552
201803 211,184.734 105.290 264,310.513
201806 217,677.059 106.317 269,803.603
201809 228,711.479 106.507 282,974.964
201812 212,503.276 105.998 264,183.292
201903 225,553.524 107.251 277,132.380
201906 234,109.324 108.070 285,464.790
201909 243,674.773 108.329 296,415.706
201912 261,416.281 108.420 317,731.160
202003 229,358.280 108.902 277,534.860
202006 245,836.041 108.767 297,840.797
202009 264,322.187 109.815 317,182.581
202012 287,030.752 109.897 344,175.825
202103 293,634.886 111.754 346,242.201
202106 311,275.583 114.631 357,831.392
202109 316,442.301 115.734 360,304.283
202112 342,621.309 117.630 383,826.626
202203 345,469.688 121.301 375,303.441
202206 314,090.271 125.017 331,072.483
202209 310,653.188 125.227 326,901.228
202212 324,322.991 125.222 341,298.810
202303 347,932.283 127.348 360,031.301
202306 372,965.859 128.729 381,795.385
202309 363,411.850 129.860 368,775.736
202312 389,372.728 129.419 396,463.424
202403 397,627.413 131.776 397,627.413

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  (LTS:0HN0) 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 (LTS:0HN0) 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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