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Berkshire Hathaway (Berkshire Hathaway) Cyclically Adjusted Price-to-FCF : 33.74 (As of May. 23, 2024)


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

As of today (2024-05-23), Berkshire Hathaway's current share price is $405.88. Berkshire Hathaway's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $12.03. Berkshire Hathaway's Cyclically Adjusted Price-to-FCF for today is 33.74.

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

BRK.B' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 20.97   Med: 28.8   Max: 36.64
Current: 34.45

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.

BRK.B's Cyclically Adjusted Price-to-FCF is ranked worse than
87.86% of 313 companies
in the Insurance industry
Industry Median: 11.43 vs BRK.B: 34.45

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 $2.859. 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 $12.03 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
=405.88/12.03
=33.74

* 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)
=2.859/131.7762*131.7762
=2.859

Current CPI (Mar. 2024) = 131.7762.

Berkshire Hathaway Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 1.462 100.560 1.916
201409 3.346 100.428 4.390
201412 1.152 99.070 1.532
201503 1.021 99.621 1.351
201506 1.863 100.684 2.438
201509 2.128 100.392 2.793
201512 1.240 99.792 1.637
201603 1.870 100.470 2.453
201606 1.829 101.688 2.370
201609 2.655 101.861 3.435
201612 1.632 101.863 2.111
201703 6.462 102.862 8.278
201706 2.243 103.349 2.860
201709 3.087 104.136 3.906
201712 1.999 104.011 2.533
201803 2.013 105.290 2.519
201806 1.943 106.317 2.408
201809 2.739 106.507 3.389
201812 2.578 105.998 3.205
201903 1.799 107.251 2.210
201906 2.279 108.070 2.779
201909 2.227 108.329 2.709
201912 2.963 108.420 3.601
202003 1.573 108.902 1.903
202006 3.081 108.767 3.733
202009 3.543 109.815 4.252
202012 3.019 109.897 3.620
202103 2.951 111.754 3.480
202106 3.119 114.631 3.585
202109 3.764 115.734 4.286
202112 1.692 117.630 1.895
202203 1.689 121.301 1.835
202206 2.171 125.017 2.288
202209 3.458 125.227 3.639
202212 2.621 125.222 2.758
202303 2.280 127.348 2.359
202306 3.564 128.729 3.648
202309 3.855 129.860 3.912
202312 4.016 129.419 4.089
202403 2.859 131.776 2.859

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  (NYSE:BRK.B) 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 (Berkshire Hathaway) 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.
Executives
Ajit Jain director, officer: Vice Chairman 100 FIRST STAMFORD PLACE, BHRG, STAMFORD CT 06902
Murphy Thomas S Jr director C/O CRESTVIEW ADVISORS, 667 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10021
Warren E Buffett director, 10 percent owner, officer: Chairman and CEO 3555 FARNAM ST, STE 1440, OMAHA NE 68131
Charlotte Guyman director 3324 78TH PL. N.E., MEDINA WA 98004
Susan A. Buffett director 808 CONAGRA DRIVE, OMAHA NE 68102
Christopher C Davis director C/O GRAHAM HOLDINGS COMPANY, 1300 NORTH 17TH STREET, SUITE 1700, ARLINGTON VA 22209
Ronald L Olson director EDISON INTERNATIONAL, 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Kenneth I Chenault director C/O GENERAL CATALYST, 20 UNIVERSITY ROAD, 4TH FLOOR, CAMBRIDGE MA 02138
Gregory Abel director, officer: Vice Chairman 666 GRAND AVE., STE.500, DES MOINES IA 50309
Meryl B Witmer director 655 THIRD AVENUE, 11TH FLOOR, NEW YORK NY 10017
Thomas S Murphy director C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1010
Bill & Melinda Gates Foundation Trust 10 percent owner 2365 CARILLON POINT, KIRKLAND WA 98033
Stephen B Burke director 41 CENTRAL PARK WEST - APT 11A, NEW YORK NY 10023
Susan L Decker director C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089
Gates William H Iii director 2365 CARILLON POINT, KIRKLAND WA 98033

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