The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $334,200 M
Debt : $130,760 M
EBITDA : $126,590 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financial Services
Industry: Insurance - Diversified
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 24.88
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $21,577 M
Average Revenue: $228,740 M
Free Cash Flow to Revenue : 9 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $371,433 M
Revenue 4 Years Ago (2020-12-31): $245,579 M
Revenue Growth: 10%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $3,495 M
Share Count 5 Years Ago (2020-12-31): $3,687 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $21.34
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 9%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $531
52-Week Low: $396
Threshold Price (15% Above 52-Week Low): $455
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,135,856 M
Since Market Cap is greater than 1 Trillion, 5 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 5% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Berkshire Hathaway Inc (BRK-B) stock.
Industry Based PE 12, Fair Value PE 15 and Growth based PE is 20. Based on these three values average assigned is 15.67.
Value-Trades has assined P/E value 15.67. Since current year earning per share is $21.34.
The fair value of Berkshire Hathaway Inc (BRK-B) stock should be (15.67 x $21.34) = $334.40
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