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Berkshire Hathaway (Berkshire Hathaway) Cyclically Adjusted PS Ratio : 3.01 (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 $402.10. Berkshire Hathaway's Cyclically Adjusted Revenue per Share for the quarter that ended in Dec. 2023 was $133.62. Berkshire Hathaway's Cyclically Adjusted PS Ratio for today is 3.01.

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

BRK.B' 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.B's Cyclically Adjusted PS Ratio is ranked worse than
86.39% of 404 companies
in the Insurance industry
Industry Median: 0.975 vs BRK.B: 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 $60.160. 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 $133.62 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
=402.10/133.62
=3.01

* 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)
=60.16/129.4194*129.4194
=60.160

Current CPI (Dec. 2023) = 129.4194.

Berkshire Hathaway Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201403 18.431 99.695 23.926
201406 20.175 100.560 25.965
201409 20.780 100.428 26.779
201412 19.593 99.070 25.595
201503 19.738 99.621 25.642
201506 20.842 100.684 26.790
201509 23.931 100.392 30.851
201512 21.071 99.792 27.327
201603 21.159 100.470 27.256
201606 22.004 101.688 28.005
201609 23.863 101.861 30.319
201612 23.579 101.863 29.958
201703 26.410 102.862 33.229
201706 23.301 103.349 29.179
201709 24.513 104.136 30.465
201712 23.898 104.011 29.736
201803 20.450 105.290 25.137
201806 27.785 106.317 33.823
201809 31.702 106.507 38.522
201812 11.455 105.998 13.986
201903 32.930 107.251 39.737
201906 30.030 108.070 35.963
201909 30.985 108.329 37.017
201912 39.588 108.420 47.256
202003 -3.701 108.902 -4.398
202006 40.091 108.767 47.703
202009 39.750 109.815 46.846
202012 44.453 109.897 52.350
202103 30.566 111.754 35.398
202106 42.340 114.631 47.802
202109 33.490 115.734 37.450
202112 50.461 117.630 55.519
202203 31.132 121.301 33.216
202206 4.208 125.017 4.356
202209 28.830 125.227 29.795
202212 42.156 125.222 43.569
202303 54.998 127.348 55.893
202306 57.749 128.729 58.059
202309 29.226 129.860 29.127
202312 60.160 129.419 60.160

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.B) 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

Thank you for viewing the detailed overview of Berkshire Hathaway's Cyclically Adjusted PS Ratio 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
Ajit Jain director, officer: Vice Chairman 100 FIRST STAMFORD PLACE, BHRG, STAMFORD CT 06902
Murphy Thomas S Jr director C/O CRESTVIEW ADVISORS, 667 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10021
Warren E Buffett director, 10 percent owner, officer: Chairman and CEO 3555 FARNAM ST, STE 1440, OMAHA NE 68131
Charlotte Guyman director 3324 78TH PL. N.E., MEDINA WA 98004
Susan A. Buffett director 808 CONAGRA DRIVE, OMAHA NE 68102
Christopher C Davis director C/O GRAHAM HOLDINGS COMPANY, 1300 NORTH 17TH STREET, SUITE 1700, ARLINGTON VA 22209
Ronald L Olson director EDISON INTERNATIONAL, 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Kenneth I Chenault director C/O GENERAL CATALYST, 20 UNIVERSITY ROAD, 4TH FLOOR, CAMBRIDGE MA 02138
Gregory Abel director, officer: Vice Chairman 666 GRAND AVE., STE.500, DES MOINES IA 50309
Meryl B Witmer director 655 THIRD AVENUE, 11TH FLOOR, NEW YORK NY 10017
Thomas S Murphy director C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1010
Bill & Melinda Gates Foundation Trust 10 percent owner 2365 CARILLON POINT, KIRKLAND WA 98033
Stephen B Burke director 41 CENTRAL PARK WEST - APT 11A, NEW YORK NY 10023
Susan L Decker director C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089
Gates William H Iii director 2365 CARILLON POINT, KIRKLAND WA 98033

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