Latest Ratios: P/E Ratio 16.3x · EV/EBITDA 16.3x · 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 | $1.09T | $1.08T | $977.5B | $775.1B | $680.6B | $677.3B | $554.6B | $555.1B | $503.4B | $489.0B | $401.9B |
| Enterprise Value | $1.18T | $1.17T | $1.07T | $870.7B | $772.5B | $708.4B | $628.9B | $600.2B | $570.6B | $560.0B | $460.1B |
| P/E Ratio → | 16.31 | 16.19 | 10.98 | 8.06 | — | 7.54 | 13.04 | 6.82 | 125.26 | 10.88 | 16.70 |
| P/S Ratio | 2.94 | 2.92 | 2.63 | 2.13 | 2.25 | 2.45 | 2.26 | 2.18 | 2.03 | 2.04 | 1.87 |
| P/B Ratio | 1.52 | 1.51 | 1.50 | 1.36 | 1.41 | 1.32 | 1.23 | 1.30 | 1.43 | 1.39 | 1.41 |
| P/FCF | 43.59 | 43.30 | 84.15 | 26.02 | 31.28 | 25.91 | 20.72 | 24.45 | 22.02 | 14.35 | 20.52 |
| P/OCF | 23.75 | 23.59 | 31.95 | 15.76 | 18.28 | 17.18 | 13.94 | 14.35 | 13.46 | 10.68 | 12.35 |
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 | — | 3.15 | 2.89 | 2.39 | 2.56 | 2.57 | 2.56 | 2.36 | 2.30 | 2.33 | 2.14 |
| EV / EBITDA | 16.29 | 16.19 | 14.85 | 14.37 | 14.72 | 15.49 | 15.50 | 14.04 | 13.62 | 16.84 | 12.46 |
| EV / EBIT | 20.02 | 19.90 | 18.06 | 18.09 | 18.57 | 20.23 | 20.98 | 18.37 | 17.77 | 23.26 | 16.42 |
| EV / FCF | — | 46.78 | 92.40 | 29.23 | 35.50 | 27.09 | 23.50 | 26.43 | 24.96 | 16.44 | 23.50 |
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% | 20.5% | 20.5% | 17.6% | 21.5% |
| Operating Margin | 15.9% | 15.9% | 16.0% | 13.2% | 13.8% | 12.7% | 12.2% | 12.8% | 13.0% | 10.0% | 13.0% |
| Net Profit Margin | 18.0% | 18.0% | 24.0% | 26.4% | -7.5% | 32.6% | 17.3% | 32.0% | 1.6% | 18.7% | 11.2% |
| 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% | 6.3% | 5.8% | 5.6% | 4.9% | 4.5% | 5.5% | 5.7% | 4.7% | 6.9% |
| ROCE | 5.3% | 5.3% | 5.7% | 5.1% | 4.6% | 4.0% | 3.8% | 4.6% | 4.9% | 3.9% | 5.1% |
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 | 0.22 | 0.23 | 0.27 | 0.23 | 0.27 | 0.25 | 0.28 | 0.29 | 0.30 |
| Debt / EBITDA | 1.92 | 1.92 | 1.99 | 2.20 | 2.43 | 2.61 | 3.02 | 2.56 | 2.33 | 3.08 | 2.34 |
| Net Debt / Equity | — | 0.12 | 0.15 | 0.17 | 0.19 | 0.06 | 0.16 | 0.11 | 0.19 | 0.20 | 0.20 |
| Net Debt / EBITDA | 1.20 | 1.20 | 1.33 | 1.58 | 1.75 | 0.68 | 1.83 | 1.05 | 1.60 | 2.13 | 1.58 |
| Debt / FCF | — | 3.48 | 8.25 | 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 | 8.25 | 8.33 | 5.49 | 7.49 |
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 | 5.94 | 4.14 | 3.83 | 4.74 | 4.28 | 4.18 | 3.70 | 4.27 | 3.16 |
| Quick Ratio | 6.41 | 6.41 | 5.61 | 3.77 | 3.40 | 4.31 | 3.89 | 3.77 | 3.31 | 3.86 | 2.81 |
| Cash Ratio | 5.29 | 5.29 | 4.57 | 2.59 | 2.18 | 3.05 | 2.79 | 2.66 | 2.27 | 2.75 | 1.91 |
| Asset Turnover | — | 0.30 | 0.32 | 0.34 | 0.32 | 0.29 | 0.28 | 0.31 | 0.35 | 0.34 | 0.35 |
| 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 | 6.1% | 6.2% | 9.1% | 12.4% | — | 13.3% | 7.7% | 14.7% | 0.8% | 9.2% | 6.0% |
| FCF Yield | 2.3% | 2.3% | 1.2% | 3.8% | 3.2% | 3.9% | 4.8% | 4.1% | 4.5% | 7.0% | 4.9% |
| Buyback Yield | 0.0% | 0.0% | 0.3% | 1.2% | 1.2% | 4.0% | 4.5% | 0.9% | 0.3% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.3% | 1.2% | 1.2% | 4.0% | 4.5% | 0.9% | 0.3% | 0.0% | 0.0% |
| Shares Outstanding | — | $2.2B | $2.2B | $2.2B | $2.2B | $2.3B | $2.4B | $2.5B | $2.5B | $2.5B | $2.5B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BRK-B stock.
Berkshire Hathaway Inc.'s current P/E ratio is 16.3x. The historical average is 26.8x. This places it at the 52th percentile of its historical range.
Berkshire Hathaway Inc.'s current EV/EBITDA is 16.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
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 16.3x. This is at the 52th 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
Prolonged inflation compressing operating margins
Metrics are mathematically derived from official filings.
Combined Ratio Holds Below 100%
Berkshire's combined ratio averaged 84.1% over the last ten quarters, consistently below 100%, indicating sustained underwriting profitability, as reported in financial statements.
The combined ratio has remained remarkably stable, ranging from 82.5% to 86.2%, with the loss ratio hovering near 77% and the expense ratio around 7-8%. This suggests disciplined underwriting and efficient expense management, though the stability may partly reflect prior-year reserve releases that could mask underlying loss trends. Investors should monitor whether the loss ratio remains contained if reserve releases diminish.
ROE Modest Despite Underwriting Strength
ROE averaged 2.9% quarterly over the last ten periods, with underwriting margins near 16%, but investment volatility drives earnings swings, as per reported figures.
The quarterly ROE figures fluctuate widely, from 0.7% to 5.1%, reflecting the impact of unrealized equity gains and losses on net income. Underwriting margins have been consistently strong, contributing positively, but the overall ROE remains below double digits, suggesting that investment income and portfolio performance are the primary drivers of earnings variability. This underscores the need to focus on operating earnings rather than GAAP net income.
Expense Ratio Reflects Scale Benefits
The expense ratio averaged 7.6% over the last ten quarters, as reported in financial statements, indicating strong operating leverage and cost discipline across Berkshire's diverse operations.
The expense ratio has remained low and relatively stable, ranging from 6.2% to 10.5%, with the higher figures in 2024Q4 and 2025Q4 likely reflecting seasonal or one-off costs. This efficiency is a testament to the decentralized management structure and scale advantages, though investors should watch for any upward drift if inflation pressures persist. The low expense ratio supports the combined ratio and enhances underwriting profitability.
Minimal Leverage, Fortress Balance Sheet
Debt-to-equity stands at 0.19%, with equity at $750.2B against liabilities of $512.9B, as per reported figures, indicating a fortress-like capital structure.
The extremely low leverage provides substantial financial flexibility, allowing Berkshire to deploy capital opportunistically without the constraints of debt covenants or interest obligations. However, the reported D/E may not fully capture localized leverage within subsidiaries like BNSF and BHE, which carry their own debt. The interest coverage ratio of 13.1x in 2026Q2 suggests ample capacity to service debt, but investors should monitor subsidiary-level leverage for a complete picture.
Valuation Premium Reflects Diversified Model
Berkshire trades at a P/B of 1.50 and P/E of 16.1, compared to Markel's 1.20 and 10.6, as per reported figures, suggesting a premium for its diversified earnings base.
The P/B premium over Markel and Greenlight may be justified by Berkshire's superior underwriting discipline, lower leverage, and the stability of its regulated utility and rail segments. However, the forward P/E of 23.96 implies expectations of significant earnings growth, which seems aggressive given the 0% revenue growth and modest ROE. The market may be pricing in a management premium for capital allocation skill, but investors should assess whether this premium is sustainable if growth remains stagnant.
Combined Ratio Ignores Reserve Releases
The combined ratio, while below 100%, may be flattered by prior-year reserve releases, obscuring underlying loss trends, as per reported figures, warranting scrutiny.
The stability of the loss ratio around 77% despite rising claims and reserve levels suggests that reserve releases are supporting reported underwriting results. If reserve adequacy deteriorates, the combined ratio could rise, eroding the apparent underwriting profitability. Investors should adjust the combined ratio for reserve development to assess the true underwriting performance, and monitor the adequacy of reserves in light of inflation and catastrophe exposure.