Warren buffett has long told investors in his berkshire hathaway inc they should. Over the last 51 years that is, since present management took over. Why berkshire hathaway is worth more than its book value. Warren buffett has long told investors in his berkshire hathaway inc they should not pay so much attention to what its stock price is doing. Warren buffett just predicted the next 50 years for berkshire hathaway. Historical price to book ratio values for berkshire hathaway brk. However he again cut his price target for the stock in october, from 245 to 242 for brkb stock. During the past 12 months, berkshire hathaway s average book value per share growth rate was 23. Berkshires book value, and why the company is worth more. But growth in book value per share has slowed to between 6. The fair value of berkshires kraft heinz position exceeds the carrying value. The company has not only increased its book value per share at a doubledigit rate annually 42 separate times during 19652017 but also reported declines in its book value.
Find the latest free cash flow ttm for berkshire hathaway inc. During the past years, the highest 3year average book value per share growth rate of berkshire hathaway was 39. Warren buffett just predicted the next 50 years for. Berkshire hathaway is undervalued on a pricebook value basis. Stock analyst update mixed year at berkshire doesnt change our view fullyear net earnings were down 0. Berkshire hathaway released its eagerly anticipated annual report today and it. Warren buffetts best opportunity might be his companys own stock. At december 31, 2015, berkshire hathaway s book value per share had increased some 6. In a shift, buffett says focus on berkshires stock price reuters. Find the latest book value per share for berkshire hathaway inc. Ubs managing director brian meredith is rating berkshire hathaway stock a buy. Warren buffett at berkshire hathaway annual meeting, talking with. In early 2017, i wrote an article on berkshire hathaway s nyse.
The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Book value per class a equivalent share at december 31. Berkshire hathaway price to book ratio 20062019 brk. Its book value per share for the quarter that ended in dec. In its august 2015 quarterly report, buffett announced a contrarian bet 8.
Cl b company facts, information and stock details by marketwatch. Find out all the key statistics for berkshire hathaway inc. Berkshire hathaway book value per share 20062019 brk. How warren buffett grew income, book value, stocks and. After 50 years, warren buffett is suddenly shifting his. Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. Berkshire hathaways 4 most profitable lines of business. Berkshire hathaway is ending the year with a bang barrons.
One of berkshires subsidiaries is buying back stock, too. New brkb, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. The book value of equity represents the equity of shareholders from a balance sheet perspective less the preferred stock. Warren buffett has never done a stock split of berkshire hathaway class a. Free cash flow ttm is a widely used stock evaluation measure. Dividing the book value by the number of outstanding shares of stock gives. Price to book value is a valuation ratio that is measured by stock price book value per share. The book value is essentially the tangible accounting value of a firm. The current price to book ratio for berkshire hathaway as of april 22, 2020 is 1. Berkshire hathaway s book value per share for the quarter that ended in dec. Book value per share can be defined as the amount of equity. During the past 3 years, the average book value per share growth rate was 15. And its less than twice the tangible book value per share, according to factset. In depth view into berkshire hathaway book value per share including historical data from 1996, charts, stats and industry comps.
Book value per share is a widely used stock evaluation measure. In a shift, buffett says focus on berkshires stock price. If the price to book value is constantly over the 1. In the table below, i show for each year from 1985 through 2015, berkshires book value per share and market price per share of its class a. For a comparison to the first quarter book value, berkshire hathaway s book value per class a equivalent share had increased by 0. Mixed year at berkshire doesnt change our view morningstar. Current and historical book value per share for berkshire hathaway brk. The big berkshire hathaway buyback no one is talking about. After 50 years, warren buffett is suddenly shifting his target metric. In depth view into berkshire hathaway book value per share explanation, calculation.