DCF Tool

BRK.A

Berkshire Hathaway Inc. – Offices of Other Holding Companies
Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.
Analysis Results
Intrinsic Value $8,982,943.19
Latest Price $468,805.04
Relative Value 95% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 22.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 106 100
2023 129 116
2024 158 134
2025 194 156
2026 237 180
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6700 billion. This corresponds to a present value of 4830 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 687 billion. Adding in the terminal value gives a total present value of 5510 billion.

There are presently 614.0 thousand outstanding shares, so the intrinsic value per share is 8982943.19.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 599,105,000,000
Current Cash 2,865,000,000
Current Liabilities 368,864,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 227,376,000,000
Change in NCWC 60,101,000,000
EBIT 38,397,000,000
Tax Provision 20,879,000,000
Depreciation and Amortization 10,718,000,000
Capital Expenditure -13,276,000,000
Unlevered Free Cash Flow 88,761,920,715
Current Assets 517,571,000,000
Current Cash 3,276,000,000
Current Liabilities 347,020,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 167,275,000,000
Change in NCWC 18,453,000,000
EBIT 14,391,000,000
Tax Provision 12,440,000,000
Depreciation and Amortization 10,596,000,000
Capital Expenditure -13,012,000,000
Unlevered Free Cash Flow 27,213,519,903
Current Assets 467,923,000,000
Current Cash 3,024,000,000
Current Liabilities 316,077,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 148,822,000,000
Change in NCWC 61,606,000,000
EBIT 36,020,000,000
Tax Provision 20,904,000,000
Depreciation and Amortization 10,064,000,000
Capital Expenditure -15,979,000,000
Unlevered Free Cash Flow 84,379,048,609
Current Assets 375,101,000,000
Current Cash 2,612,000,000
Current Liabilities 285,273,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 87,216,000,000
Change in NCWC 10,732,000,000
EBIT 29,548,000,000
Tax Provision -321,000,000
Depreciation and Amortization 9,779,000,000
Capital Expenditure -14,537,000,000
Unlevered Free Cash Flow 35,522,000,000
Current Assets 359,846,000,000
Current Cash 2,910,000,000
Current Liabilities 280,452,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 76,484,000,000
Change in NCWC 40,604,000,000
EBIT 27,092,000,000
Tax Provision -21,515,000,000
Depreciation and Amortization 9,188,000,000
Capital Expenditure -11,708,000,000
Unlevered Free Cash Flow 65,176,000,000
Current Assets 312,108,000,000
Current Cash 3,939,000,000
Current Liabilities 272,289,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 35,880,000,000
Change in NCWC -13,561,000,000
EBIT 36,309,000,000
Tax Provision 9,240,000,000
Depreciation and Amortization 8,901,000,000
Capital Expenditure -12,954,000,000
Unlevered Free Cash Flow 8,729,895,892
Current Assets 285,736,000,000
Current Cash 3,437,000,000
Current Liabilities 232,858,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 49,441,000,000
Change in NCWC 5,550,000,000
EBIT 37,599,000,000
Tax Provision 10,532,000,000
Depreciation and Amortization 7,779,000,000
Capital Expenditure -16,082,000,000
Unlevered Free Cash Flow 23,514,440,794
Current Assets 274,472,000,000
Current Cash 3,001,000,000
Current Liabilities 227,580,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 43,891,000,000
Change in NCWC 5,922,000,000
EBIT 30,483,000,000
Tax Provision 7,935,000,000
Depreciation and Amortization 7,370,000,000
Capital Expenditure -15,185,000,000
Unlevered Free Cash Flow 19,983,609,500
Current Assets 255,160,000,000
Current Cash 3,400,000,000
Current Liabilities 213,791,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,969,000,000
Change in NCWC -35,498,000,000
EBIT 30,661,000,000
Tax Provision 8,951,000,000
Depreciation and Amortization 6,508,000,000
Capital Expenditure -11,087,000,000
Unlevered Free Cash Flow -18,946,719,926
Current Assets 230,996,000,000
Current Cash 2,570,000,000
Current Liabilities 154,959,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 73,467,000,000
Change in NCWC 24,394,000,000
EBIT 23,981,000,000
Tax Provision 6,924,000,000
Depreciation and Amortization 5,146,000,000
Capital Expenditure -9,775,000,000
Unlevered Free Cash Flow 36,278,629,789

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