Latest Ratios: P/E Ratio 17.6x · EV/EBITDA 17.5x · ROE 9.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.18T | $1.09T | $979.2B | $786.3B | $688.5B | $680.5B | $554.4B | $554.9B | $503.1B | $489.6B | $401.3B |
| Enterprise Value | $1.27T | $1.17T | $1.06T | $881.8B | $780.4B | $711.6B | $628.8B | $600.0B | $570.2B | $560.6B | $459.5B |
| P/E Ratio → | 17.62 | 16.21 | 11.00 | 8.17 | — | 7.57 | 13.04 | 6.82 | 125.10 | 10.89 | 16.67 |
| P/S Ratio | 3.18 | 2.92 | 2.64 | 2.16 | 2.28 | 2.46 | 2.26 | 2.16 | 2.05 | 2.00 | 1.79 |
| P/B Ratio | 1.64 | 1.51 | 1.50 | 1.38 | 1.43 | 1.32 | 1.23 | 1.29 | 1.43 | 1.39 | 1.41 |
| P/FCF | 47.12 | 43.34 | 84.29 | 26.40 | 31.64 | 26.03 | 20.72 | 24.44 | 22.00 | 14.37 | 20.50 |
| P/OCF | 25.67 | 23.61 | 32.01 | 15.98 | 18.50 | 17.26 | 13.94 | 14.34 | 13.45 | 10.69 | 12.34 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.16 | 2.86 | 2.42 | 2.58 | 2.58 | 2.56 | 2.33 | 2.32 | 2.29 | 2.05 |
| EV / EBITDA | 17.51 | 16.20 | 14.69 | 14.55 | 14.87 | 15.56 | 15.50 | 5.38 | 35.76 | 18.68 | 11.08 |
| EV / EBIT | 21.52 | 19.91 | 17.87 | 18.32 | 18.77 | 20.32 | 20.98 | 5.63 | 72.60 | 19.86 | 12.28 |
| EV / FCF | — | 46.82 | 91.44 | 29.60 | 35.86 | 27.22 | 23.50 | 26.42 | 24.94 | 16.45 | 23.47 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.6% | 23.6% | 23.3% | 19.5% | 19.7% | 20.0% | 19.9% | 39.2% | 38.3% | 35.0% | 40.2% |
| Operating Margin | 15.9% | 15.9% | 16.0% | 13.2% | 13.8% | 12.7% | 12.2% | 39.5% | 2.5% | 8.5% | 14.5% |
| Net Profit Margin | 18.0% | 18.0% | 24.0% | 26.4% | -7.5% | 32.6% | 17.3% | 31.7% | 1.6% | 18.4% | 10.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.8% | 9.8% | 14.6% | 18.3% | -4.6% | 18.6% | 9.7% | 20.8% | 1.1% | 14.1% | 8.8% |
| ROA | 5.6% | 5.6% | 8.0% | 9.5% | -2.4% | 9.8% | 5.0% | 10.7% | 0.6% | 6.8% | 4.1% |
| ROIC | 5.7% | 5.7% | 6.4% | 5.8% | 5.6% | 4.9% | 4.5% | 17.0% | 1.1% | 4.1% | 8.0% |
| ROCE | 5.3% | 5.3% | 5.7% | 5.0% | 4.6% | 4.0% | 3.7% | 14.1% | 0.9% | 3.4% | 6.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.19 | 0.19 | 0.20 | 0.23 | 0.27 | 0.23 | 0.27 | 0.25 | 0.28 | 0.29 | 0.30 |
| Debt / EBITDA | 1.92 | 1.92 | 1.81 | 2.20 | 2.43 | 2.61 | 3.02 | 0.98 | 6.11 | 3.42 | 2.08 |
| Net Debt / Equity | — | 0.12 | 0.13 | 0.17 | 0.19 | 0.06 | 0.16 | 0.11 | 0.19 | 0.20 | 0.20 |
| Net Debt / EBITDA | 1.20 | 1.20 | 1.15 | 1.58 | 1.75 | 0.68 | 1.83 | 0.40 | 4.21 | 2.37 | 1.40 |
| Debt / FCF | — | 3.48 | 7.15 | 3.21 | 4.22 | 1.19 | 2.78 | 1.98 | 2.94 | 2.08 | 2.97 |
| Interest Coverage | 11.62 | 11.62 | 11.43 | 9.62 | 9.56 | 8.39 | 7.34 | 26.93 | 2.04 | 6.44 | 10.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 6.75 | 6.75 | 5.39 | 4.70 | 4.55 | 5.04 | 4.25 | 4.53 | 4.06 | 3.89 | 3.32 |
| Quick Ratio | 6.41 | 6.41 | 5.07 | 4.27 | 4.04 | 4.58 | 3.83 | 4.08 | 3.64 | 3.53 | 2.96 |
| Cash Ratio | 5.29 | 5.29 | 4.42 | 2.94 | 2.60 | 3.24 | 3.03 | 2.88 | 2.49 | 2.59 | 2.01 |
| Asset Turnover | — | 0.30 | 0.32 | 0.34 | 0.32 | 0.29 | 0.28 | 0.31 | 0.35 | 0.35 | 0.36 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.7% | 6.2% | 9.1% | 12.2% | — | 13.2% | 7.7% | 14.7% | 0.8% | 9.2% | 6.0% |
| FCF Yield | 2.1% | 2.3% | 1.2% | 3.8% | 3.2% | 3.8% | 4.8% | 4.1% | 4.5% | 7.0% | 4.9% |
| Buyback Yield | 0.0% | 0.0% | 0.3% | 1.2% | 1.1% | 4.0% | 4.5% | 0.9% | 0.3% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.3% | 1.2% | 1.1% | 4.0% | 4.5% | 0.9% | 0.3% | 0.0% | 0.0% |
| Shares Outstanding | — | $1M | $1M | $1M | $1M | $2M | $2M | $2M | $2M | $2M | $2M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BRK-A stock.
Berkshire Hathaway Inc.'s current P/E ratio is 17.6x. The historical average is 22.6x. This places it at the 61th percentile of its historical range.
Berkshire Hathaway Inc.'s current EV/EBITDA is 17.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.7x.
Berkshire Hathaway Inc.'s return on equity (ROE) is 9.8%. The historical average is 8.9%.
Based on historical data, Berkshire Hathaway Inc. is trading at a P/E of 17.6x. This is at the 61th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Berkshire Hathaway Inc. has 23.6% gross margin and 15.9% operating margin. Operating margin between 10-20% is typical for established companies.
Berkshire Hathaway Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Wildfire liabilities at PacifiCorp
Metrics are mathematically derived from official filings.
Combined Ratio Holds Below 100%
Berkshire's combined ratio improved to 82.8% in 2026Q2 from 83.2% a year earlier, according to quarterly data, reflecting sustained underwriting discipline despite rising loss costs.
The combined ratio has remained consistently below 85% over the past ten quarters, with the loss ratio drifting upward from 72.2% in 2024Q4 to 76.6% in 2026Q2. This suggests that while underwriting profitability is intact, the underlying loss trend is deteriorating, likely due to inflationary pressures on claims. The expense ratio's decline to 6.2% in 2026Q2 from 10.5% in 2024Q4 indicates scale efficiencies, but investors should monitor whether reserve releases are masking true loss experience.
ROE Volatility Masks Stable Operating Core
ROE swung from 5.1% in 2024Q2 to 1.4% in 2026Q1, as reported in financial statements, reflecting mark-to-market equity swings rather than operational deterioration.
The quarterly ROE figures are heavily distorted by unrealized gains and losses on the equity portfolio, as required by ASU 2016-01. The underlying operating earnings, which exclude these fluctuations, appear stable, with the underwriting margin holding near 17% in 2026Q2. This suggests that the core insurance and industrial operations are generating consistent returns, but headline ROE is not a reliable indicator of performance for this entity.
Underwriting Leverage Remains Conservative
Berkshire's premium-to-surplus ratio, implied by the combined ratio and equity base, appears conservative, with D/E at 0.17 in 2026Q2, according to balance sheet data, indicating ample capital cushion.
The debt-to-equity ratio has remained stable around 0.17-0.21 over the past ten quarters, suggesting that Berkshire is not aggressively leveraging its balance sheet to fund growth. The substantial equity base of $750.2B in 2026Q2 provides a significant buffer against underwriting shocks, consistent with a fortress-like capital position. This conservative leverage supports the company's ability to deploy capital opportunistically without straining its credit profile.
Premium Valuation Reflects Capital Allocation
Berkshire trades at a P/B of 1.50 versus Markel's 1.20, as per current valuation metrics, implying a premium for its superior underwriting and investment track record.
The P/B premium over Markel, a comparable investing insurer, appears justified by Berkshire's consistently lower combined ratio (82.8% vs. Markel's industry average) and its diversified earnings base across rail, utilities, and manufacturing. However, the forward P/E of 23.99 suggests the market is pricing in significant future earnings growth, which may be optimistic given the size drag on capital deployment. Investors should weigh the complexity discount against the proven capital allocation expertise.
P/E Misleads on Catastrophe-Driven Earnings
The P/E ratio is commonly misapplied to Berkshire because quarterly net income is distorted by unrealized equity gains, as reported in financial statements, obscuring true operating performance.
The trailing P/E of 16.11 is artificially depressed by the inclusion of unrealized investment losses in net income, while the forward P/E of 23.99 reflects expectations of normalized earnings. This volatility makes P/E an unreliable valuation metric for Berkshire. Instead, analysts should focus on price-to-book value and operating earnings, which exclude investment fluctuations, to assess the company's intrinsic value. The combined ratio, adjusted for reserve development, remains the most critical underwriting metric.