Berkshire Hathaway Inc
NYSE:BRK.A
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (19.4), the stock would be worth $725 971.46 (3% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 18.8 | $703 700 |
0%
|
| 3-Year Average | 19.4 | $725 971.46 |
+3%
|
| 5-Year Average | 19.7 | $734 685 |
+4%
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| Industry Average | 20 | $746 721.95 |
+6%
|
| Country Average | 19.6 | $733 443.25 |
+4%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$1.1T
|
/ |
Jan 2026
$58B
|
= |
|
|
$1.1T
|
/ |
Dec 2026
$48B
|
= |
|
|
$1.1T
|
/ |
Dec 2027
$50.9B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
1T USD | 18.8 | 15.2 | |
| SE |
|
Investor AB
STO:INVE B
|
1.2T SEK | 47.6 | 7.4 | |
| ZA |
R
|
Remgro Ltd
JSE:REM
|
110.6B ZAR | 32.3 | 33.5 | |
| SE |
|
Industrivarden AB
STO:INDU A
|
215.4B SEK | 5.4 | 5.4 | |
| MC |
|
HAL Trust
AEX:HAL
|
15.5B EUR | 8.6 | 9.7 | |
| NL |
|
Exor NV
AEX:EXO
|
14.2B EUR | -4.5 | -3.8 | |
| SE |
|
L E Lundbergforetagen AB (publ)
STO:LUND B
|
139.7B SEK | 23.9 | 11.6 | |
| IN |
|
Bajaj Holdings and Investment Ltd
NSE:BAJAJHLDNG
|
1.2T INR | 119.4 | 13.1 | |
| BE |
|
Groep Brussel Lambert NV
XBRU:GBLB
|
9.8B EUR | 72.7 | -15.6 | |
| BE |
|
Sofina SA
XBRU:SOF
|
8B EUR | 82.3 | 73.8 | |
| SA |
|
Kingdom Holding Company SJSC
SAU:4280
|
29.6B SAR | 37.7 | 17.4 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Berkshire Hathaway Inc
Glance View
Berkshire Hathaway Inc. began its journey as a humble textile manufacturing company in the early 19th century. However, a pivotal transformation occurred when Warren Buffett took control in 1965 and turned it into a powerhouse of investment and conglomerate empire. The key to Berkshire's meteoric rise has been Buffett's unique investment philosophy where he focuses on the intrinsic value of companies, buying undervalued businesses with strong fundamentals and reliable management. Today, rather than textiles, Berkshire stands as a microcosm of the American economy with its diverse range of holdings and operating businesses spanning from insurance, railroads, utilities, to consumer goods, and fintech. The heart of Berkshire Hathaway's operations revolves around its vast portfolio of wholly owned subsidiaries and significant minority stakes in publicly traded stocks. Its insurance operations, led by entities such as GEICO and Berkshire Hathaway Reinsurance, act as a financial cornerstone, generating substantial premium float that can be invested to compound returns over time. Simultaneously, companies like BNSF Railway and Berkshire Hathaway Energy provide steady, predictable cash flows, aiding in funding further acquisitions and investments. Meanwhile, the equity investments in stalwarts like Apple provide substantial capital gains and dividends. This intricate symbiosis of varied businesses not only fuels Berkshire's financial growth but also encapsulates an ethos of patience and value investment that has captivated investors globally.
