The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Berkshire Hathaway's share price is CHF270.00.
Berkshire Hathaway's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was CHF170.09. Hence, Berkshire Hathaway's PS Ratio for today is 1.59.
Good Sign:
Berkshire Hathaway Inc stock PS Ratio (=2) is close to 1-year low of 1.82
The historical rank and industry rank for Berkshire Hathaway's PS Ratio or its related term are showing as below:
XSWX:BRK_B'
s PS Ratio Range Over the Past 10 Years
Min: 1.28 Med: 1.88 Max: 3.02
Current: 2
During the past 13 years, Berkshire Hathaway's highest PS Ratio was 3.02. The lowest was 1.28. And the median was 1.88.
XSWX:BRK_B's PS Ratio is ranked worse than 75.31% of 486
companies
in the Insurance industry
Industry Median: 1.045
vs XSWX:BRK_B: 2.00
During the past 12 months, the average Revenue per Share Growth Rate of Berkshire Hathaway was 90.20% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 19.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 10.70% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 8.40% per year.
During the past 13 years, Berkshire Hathaway's highest 3-Year average Revenue per Share Growth Rate was 57.20% per year. The lowest was -7.30% per year. And the median was 13.80% per year.
Back to Basics: PS Ratio
Berkshire Hathaway PS Ratio Historical Data
The historical data trend for Berkshire Hathaway's 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.
Competitive Comparison of Berkshire Hathaway's PS Ratio
For the Insurance - Diversified subindustry, Berkshire Hathaway's PS Ratio, along with its competitors' market caps and 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 PS Ratio Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's PS Ratio distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's PS Ratio falls into.
Berkshire Hathaway PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Berkshire Hathaway's Share Price of today is CHF270.00. Berkshire Hathaway's Revenue per Share 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 CHF170.09.
* 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:
Berkshire Hathaway (XSWX:BRK_B) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Berkshire Hathaway PS Ratio Related Terms
Thank you for viewing the detailed overview of Berkshire Hathaway's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Berkshire Hathaway (XSWX:BRK_B) 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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