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Berkshire Hathaway (Berkshire Hathaway) Cyclically Adjusted Price-to-FCF : 34.55 (As of Apr. 27, 2024)


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What is Berkshire Hathaway Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Berkshire Hathaway's current share price is $606920.00. Berkshire Hathaway's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $17,567.50. Berkshire Hathaway's Cyclically Adjusted Price-to-FCF for today is 34.55.

The historical rank and industry rank for Berkshire Hathaway's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BRK.A' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 20.97   Med: 28.75   Max: 36.64
Current: 34.55

During the past years, Berkshire Hathaway's highest Cyclically Adjusted Price-to-FCF was 36.64. The lowest was 20.97. And the median was 28.75.

BRK.A's Cyclically Adjusted Price-to-FCF is ranked worse than
88.58% of 324 companies
in the Insurance industry
Industry Median: 11.03 vs BRK.A: 34.55

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Berkshire Hathaway's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $6,023.562. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $17,567.50 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Berkshire Hathaway Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Berkshire Hathaway's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Berkshire Hathaway Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.39 26.87 30.64 28.78 30.89

Berkshire Hathaway Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF 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 28.78 28.05 30.51 30.70 30.89

Competitive Comparison of Berkshire Hathaway's Cyclically Adjusted Price-to-FCF

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

For the Insurance industry and Financial Services sector, Berkshire Hathaway's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Berkshire Hathaway's Cyclically Adjusted Price-to-FCF falls into.



Berkshire Hathaway Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.

Berkshire Hathaway's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=606920.00/17567.5
=34.55

* 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 FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Berkshire Hathaway's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=6023.562/129.4194*129.4194
=6,023.562

Current CPI (Dec. 2023) = 129.4194.

Berkshire Hathaway Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 1,298.054 99.695 1,685.082
201406 2,193.431 100.560 2,822.931
201409 5,018.259 100.428 6,466.935
201412 1,728.545 99.070 2,258.079
201503 1,531.345 99.621 1,989.395
201506 2,794.279 100.684 3,591.775
201509 3,192.331 100.392 4,115.384
201512 1,860.621 99.792 2,413.014
201603 2,806.452 100.470 3,615.088
201606 2,742.701 101.688 3,490.661
201609 3,982.968 101.861 5,060.556
201612 2,448.297 101.863 3,110.630
201703 9,695.864 102.862 12,199.165
201706 3,363.526 103.349 4,211.991
201709 4,629.179 104.136 5,753.129
201712 2,998.176 104.011 3,730.584
201803 3,019.453 105.290 3,711.441
201806 2,914.894 106.317 3,548.299
201809 4,107.664 106.507 4,991.342
201812 3,866.017 105.998 4,720.260
201903 2,698.780 107.251 3,256.623
201906 3,418.349 108.070 4,093.668
201909 3,341.090 108.329 3,991.547
201912 4,445.332 108.420 5,306.324
202003 2,359.827 108.902 2,804.437
202006 4,620.968 108.767 5,498.370
202009 5,313.170 109.815 6,261.694
202012 4,527.938 109.897 5,332.303
202103 4,427.267 111.754 5,127.084
202106 4,676.974 114.631 5,280.326
202109 5,646.041 115.734 6,313.662
202112 2,538.047 117.630 2,792.433
202203 2,532.881 121.301 2,702.401
202206 3,254.929 125.017 3,369.555
202209 5,186.094 125.227 5,359.738
202212 3,933.014 125.222 4,064.854
202303 3,420.330 127.348 3,475.969
202306 5,344.138 128.729 5,372.812
202309 5,781.617 129.860 5,762.023
202312 6,023.562 129.419 6,023.562

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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  (NYSE:BRK.A) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Berkshire Hathaway Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Berkshire Hathaway's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Berkshire Hathaway (Berkshire Hathaway) 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.
Executives
Ronald L Olson director EDISON INTERNATIONAL, 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Ajit Jain director, officer: Vice Chairman 100 FIRST STAMFORD PLACE, BHRG, STAMFORD CT 06902
Charles T Munger director, officer: Vice Chairman 355 S GRAND AV, 34TH FL, LOS ANGELES CA 90071
Warren E Buffett director, 10 percent owner, officer: Chairman and CEO 3555 FARNAM ST, STE 1440, OMAHA NE 68131
Meryl B Witmer director 655 THIRD AVENUE, 11TH FLOOR, NEW YORK NY 10017
Kenneth I Chenault director C/O GENERAL CATALYST, 20 UNIVERSITY ROAD, 4TH FLOOR, CAMBRIDGE MA 02138
David S Gottesman director
Charlotte Guyman director 3324 78TH PL. N.E., MEDINA WA 98004
Gregory Abel director, officer: Vice Chairman 666 GRAND AVE., STE.500, DES MOINES IA 50309
Thomas S Murphy director C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1010
Stephen B Burke director 41 CENTRAL PARK WEST - APT 11A, NEW YORK NY 10023
Keough Donald R /ny director 200 GALLERIA PARKWAY, SE, SUITE 970, ATLANTA 2Q 30339-5945
Bill & Melinda Gates Foundation Trust 10 percent owner 2365 CARILLON POINT, KIRKLAND WA 98033
Susan L Decker director C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089
Malcolm G Chace director ONE PROVIDENCE WASHINGTON PLZ, 4TH FL, PROVIDENCE RI 02903

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