The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-04-23), Berkshire Hathaway's share price is $408.04. Berkshire Hathaway's Book Value per Share for the quarter that ended in Dec. 2023 was $259.58. Hence, Berkshire Hathaway's PB Ratio of today is 1.57.
Warning Sign:
Berkshire Hathaway Inc stock PB Ratio (=1.59) is close to 10-year high of 1.63
The historical rank and industry rank for Berkshire Hathaway's PB Ratio or its related term are showing as below:
BRK.B'
s PB Ratio Range Over the Past 10 Years
Min: 0.98 Med: 1.39 Max: 1.63
Current: 1.58
During the past 13 years, Berkshire Hathaway's highest PB Ratio was 1.63. The lowest was 0.98. And the median was 1.39.
BRK.B's PB Ratio is ranked worse than 64.33% of 485
companies
in the Insurance industry
Industry Median: 1.21
vs BRK.B: 1.58
During the past 12 months, Berkshire Hathaway's average Book Value Per Share Growth Rate was 20.10% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 10.70% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 11.60% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 11.60% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Berkshire Hathaway was 39.20% per year. The lowest was 0.10% per year. And the median was 12.20% per year.
Back to Basics: PB Ratio
Berkshire Hathaway PB Ratio Historical Data
The historical data trend for Berkshire Hathaway's 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.
For the Insurance - Diversified subindustry, Berkshire Hathaway's PB Ratio, along with its competitors' market caps and 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 PB Ratio Distribution
For the Insurance industry and Financial Services sector, Berkshire Hathaway's PB Ratio distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's PB Ratio falls into.
Berkshire Hathaway PB Ratio Calculation
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Berkshire Hathaway's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Berkshire Hathaway (NYSE:BRK.B) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Berkshire Hathaway PB Ratio Related Terms
Thank you for viewing the detailed overview of Berkshire Hathaway's PB Ratio 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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