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Berkshire Hathaway (XTER:BRYN) Cyclically Adjusted Price-to-FCF : 34.20 (As of May. 24, 2024)


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What is Berkshire Hathaway Cyclically Adjusted Price-to-FCF?

As of today (2024-05-24), Berkshire Hathaway's current share price is €378.60. Berkshire Hathaway's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €11.07. Berkshire Hathaway's Cyclically Adjusted Price-to-FCF for today is 34.20.

The historical rank and industry rank for Berkshire Hathaway's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

XTER:BRYN' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 20.97   Med: 28.8   Max: 36.64
Current: 33.75

During the past years, Berkshire Hathaway's highest Cyclically Adjusted Price-to-FCF was 36.64. The lowest was 20.97. And the median was 28.80.

XTER:BRYN's Cyclically Adjusted Price-to-FCF is ranked worse than
87.86% of 313 companies
in the Insurance industry
Industry Median: 11.37 vs XTER:BRYN: 33.75

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Berkshire Hathaway's adjusted free cash flow per share data for the three months ended in Mar. 2024 was €2.630. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €11.07 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Berkshire Hathaway Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Berkshire Hathaway's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Berkshire Hathaway Cyclically Adjusted Price-to-FCF Chart

Berkshire Hathaway Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.39 26.87 30.64 28.78 30.89

Berkshire Hathaway Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.05 30.51 30.70 30.89 34.97

Competitive Comparison of Berkshire Hathaway's Cyclically Adjusted Price-to-FCF

For the Insurance - Diversified subindustry, Berkshire Hathaway's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Berkshire Hathaway's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Berkshire Hathaway's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Berkshire Hathaway's Cyclically Adjusted Price-to-FCF falls into.



Berkshire Hathaway Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Berkshire Hathaway's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=378.60/11.07
=34.20

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Berkshire Hathaway's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Berkshire Hathaway's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.63/131.7762*131.7762
=2.630

Current CPI (Mar. 2024) = 131.7762.

Berkshire Hathaway Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 1.076 100.560 1.410
201409 2.597 100.428 3.408
201412 0.935 99.070 1.244
201503 0.943 99.621 1.247
201506 1.660 100.684 2.173
201509 1.896 100.392 2.489
201512 1.138 99.792 1.503
201603 1.680 100.470 2.203
201606 1.628 101.688 2.110
201609 2.366 101.861 3.061
201612 1.547 101.863 2.001
201703 6.042 102.862 7.740
201706 1.996 103.349 2.545
201709 2.590 104.136 3.277
201712 1.689 104.011 2.140
201803 1.633 105.290 2.044
201806 1.663 106.317 2.061
201809 2.347 106.507 2.904
201812 2.266 105.998 2.817
201903 1.592 107.251 1.956
201906 2.017 108.070 2.459
201909 2.022 108.329 2.460
201912 2.667 108.420 3.242
202003 1.424 108.902 1.723
202006 2.736 108.767 3.315
202009 3.008 109.815 3.610
202012 2.482 109.897 2.976
202103 2.479 111.754 2.923
202106 2.589 114.631 2.976
202109 3.199 115.734 3.642
202112 1.497 117.630 1.677
202203 1.534 121.301 1.666
202206 2.053 125.017 2.164
202209 3.492 125.227 3.675
202212 2.475 125.222 2.605
202303 2.129 127.348 2.203
202306 3.289 128.729 3.367
202309 3.612 129.860 3.665
202312 3.683 129.419 3.750
202403 2.630 131.776 2.630

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Berkshire Hathaway  (XTER:BRYN) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Berkshire Hathaway Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Berkshire Hathaway's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Berkshire Hathaway (XTER:BRYN) Business Description

Address
3555 Farnam Street, Omaha, NE, USA, 68131
Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.

Berkshire Hathaway (XTER:BRYN) Headlines