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Berkshire Hathaway (Berkshire Hathaway) Cyclically Adjusted PS Ratio : 2.99 (As of Apr. 27, 2024)


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What is Berkshire Hathaway Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Berkshire Hathaway's current share price is $606920.00. Berkshire Hathaway's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was $203,289.00. Berkshire Hathaway's Cyclically Adjusted PS Ratio for today is 2.99.

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

BRK.A' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.92   Med: 2.46   Max: 3.23
Current: 2.99

During the past years, Berkshire Hathaway's highest Cyclically Adjusted PS Ratio was 3.23. The lowest was 1.92. And the median was 2.46.

BRK.A's Cyclically Adjusted PS Ratio is ranked worse than
86.39% of 404 companies
in the Insurance industry
Industry Median: 0.975 vs BRK.A: 2.99

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Berkshire Hathaway's adjusted revenue per share data for the three months ended in Dec. 2023 was $90,221.760. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $203,289.00 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Berkshire Hathaway Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Berkshire Hathaway's Cyclically Adjusted PS 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 PS Ratio Chart

Berkshire Hathaway Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.54 2.42 2.70 2.59 2.67

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 PS 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 2.59 2.46 2.64 2.67 2.67

Competitive Comparison of Berkshire Hathaway's Cyclically Adjusted PS Ratio

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

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

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



Berkshire Hathaway Cyclically Adjusted PS Ratio Calculation

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

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=606920.00/203289
=2.99

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

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

Adj_RevenuePerShare=Revenue per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=90221.76/129.4194*129.4194
=90,221.760

Current CPI (Dec. 2023) = 129.4194.

Berkshire Hathaway Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 27,647.810 99.695 35,891.278
201406 30,268.856 100.560 38,955.814
201409 31,161.899 100.428 40,157.748
201412 29,388.314 99.070 38,391.334
201503 29,606.817 99.621 38,462.700
201506 31,264.760 100.684 40,187.820
201509 35,903.226 100.392 46,284.536
201512 31,614.121 99.792 40,999.922
201603 31,748.631 100.470 40,896.511
201606 33,001.217 101.688 42,000.959
201609 35,792.579 101.861 45,476.228
201612 35,375.912 101.863 44,946.082
201703 39,625.912 102.862 49,856.621
201706 34,942.857 103.349 43,757.358
201709 36,761.094 104.136 45,686.573
201712 35,843.769 104.011 44,599.846
201803 30,673.556 105.290 37,703.220
201806 41,679.027 106.317 50,735.864
201809 47,540.146 106.507 57,767.419
201812 17,177.832 105.998 20,973.479
201903 49,390.244 107.251 59,599.310
201906 45,043.425 108.070 53,942.075
201909 46,477.648 108.329 55,526.102
201912 59,385.135 108.420 70,887.119
202003 -5,551.448 108.902 -6,597.385
202006 60,127.171 108.767 71,543.767
202009 59,613.106 109.815 70,255.424
202012 66,669.236 109.897 78,512.682
202103 45,857.143 111.754 53,105.774
202106 63,492.105 114.631 71,682.891
202109 50,235.529 115.734 56,175.672
202112 75,701.010 117.630 83,288.455
202203 46,688.136 121.301 49,812.867
202206 6,309.993 125.017 6,532.206
202209 43,244.035 125.227 44,691.955
202212 63,250.171 125.222 65,370.400
202303 82,521.291 127.348 83,863.686
202306 86,595.862 128.729 87,060.496
202309 43,836.904 129.860 43,688.339
202312 90,221.760 129.419 90,221.760

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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 PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Berkshire Hathaway Cyclically Adjusted PS Ratio Related Terms

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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