Berkshire Hathaway Inc. New (BRK-B)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $36.8 billion in annual free cash flow (3.6% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.19, providing financial flexibility
• Established organization with 3,87,800 employees providing operational scale

AI Analysis

Berkshire Hathaway Inc. New is a mega-cap financial services company valued at $1.0 trillion. The business generates $371.4 billion in annual revenue with a 8.3% net margin and $36.8 billion in free cash flow. From a quality standpoint, Berkshire shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.2 in the grey zone. On valuation, the stock is reasonably priced at 15.2x earnings, with offers a 97% margin of safety vs Graham Number of $18665. Growth dynamics show revenue growing at 9.8% and profit growth of -2.5%. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Berkshire's dominant market position and scale advantages create a durable moat that supports premium valuation over time. With $36.8 billion in annual free cash flow (3.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer