Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Berkshire Hathaway's Enterprise Value is $959,508 Mil.
Berkshire Hathaway's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $125,169 Mil. Therefore, Berkshire Hathaway's EV-to-EBIT ratio for today is 7.67.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Berkshire Hathaway's Enterprise Value is $959,508 Mil.
Berkshire Hathaway's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 was $137,655 Mil. Therefore, Berkshire Hathaway's EV-to-EBITDA ratio for today is 6.97.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Berkshire Hathaway's Enterprise Value is $959,508 Mil.
Berkshire Hathaway's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 was $439,337 Mil. Therefore, Berkshire Hathaway's EV-to-Revenue ratio for today is 2.18.
Berkshire Hathaway Enterprise Value Historical Data
The historical data trend for Berkshire Hathaway's Enterprise Value 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.
Competitive Comparison of Berkshire Hathaway's Enterprise Value
For the Insurance - Diversified subindustry, Berkshire Hathaway's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Enterprise Value falls into.
Berkshire Hathaway Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Berkshire Hathaway's Enterprise Value for the fiscal year that ended in Dec. 2023 is calculated as
* 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 (NYSE:BRK.A) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Berkshire Hathaway's current Enterprise Value is $959,508 Mil.
Berkshire Hathaway's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $125,169 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Berkshire Hathaway's current Enterprise Value is $959,508 Mil.
Berkshire Hathaway's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $137,655 Mil.
Berkshire Hathaway's current Enterprise Value is $959,508 Mil.
Berkshire Hathaway's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $439,337 Mil.
* 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of Berkshire Hathaway's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Berkshire Hathaway (Berkshire Hathaway) Business Description
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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