BRK-B (BRK-B)
Quantitative Summary
DeterministicFinancial health is average: Piotroski 4/9, Altman Z 2.7. DCF fair value of $630733 implies 131251% upside from current prices based on model assumptions.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe fundamental economics of this entity reveal a distinct divergence between operating efficiency and capital generation capabilities. While the DuPont decomposition highlights robust margin expansion at 16.3%, driven by significant leverage rather than asset intensity, the negative ROIC-WACC spread of -2.9% indicates that core operations are currently destroying value relative to the cost of capital. This inefficiency is corroborated by a declining revenue trajectory and an Altman Z-Score hovering near the distress threshold at 2.7, suggesting elevated balance sheet risk despite a modest Piotroski F-Score of 4/9 indicating moderate financial strength.
Valuation metrics present a complex picture where current multiples appear compressed relative to historical norms, yet this compression does not necessarily reflect intrinsic value when adjusted for growth assumptions. The DCF model implies an astronomical upside based on specific inputs that assume a severe long-term free cash flow contraction of 20% annually over the next decade; such an aggressive negative growth assumption fundamentally alters the valuation framework compared to standard peer comparisons. Consequently, while the price-to-earnings ratio sits at 15.4x, the market pricing appears detached from traditional value metrics when viewed through a lens that anticipates shrinking cash flows rather than expansion.
Risk factor analysis further complicates the investment thesis by exposing structural weaknesses in profitability relative to size and book equity. The negative Return on Market Capitalization (RMW) factor of -0.103 signals deteriorating profit quality, while the strong Value Factor tilt suggests the stock may be undervalued based on traditional value screens despite its operational headwinds. Although insider activity remains neutral over the last 90 days and Fama-French alpha is positive at 1.46% annually, these factors do not fully offset the concerns raised by the negative spread between return on invested capital and the weighted average cost of capital.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
Interactive5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.
The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of -3% YoY revenue.
Sensitivity Matrix
| TG ↓ / WACC → | 6.6% | 8.6% | 10.6% |
|---|---|---|---|
| 2% | $817602 | $541927 | $394957 |
| 3% | $1030197 | $630733 | $441740 |
| 4% | $1404713 | $757934 | $502645 |
Center = base case. Green = >10% upside, Red = >10% downside vs $471.51.
Pre-computed DCF: WACC=8.6%, terminal growth 3%. Fair value $630733 (+131250.7%). Not investment advice.
Price Chart with Moving Averages
Technical Setup
AI GeneratedAt $482.70, Berkshire Hathaway Class B shares are positioned within a specific technical context defined by their relationship to the Simple Moving Average envelope. Without explicit values for the upper and lower bands or the current price's exact deviation from the mean, the precise degree of extension cannot be quantified; however, this level represents a focal point where market participants assess whether the asset is trading at a premium relative to its recent average cost basis or approaching a discount zone that historically attracts contrarian interest. The proximity of the current price to these dynamic support and resistance thresholds often signals shifting momentum, as traders watch for potential mean-reversion tendencies if the stock has recently stretched beyond typical volatility parameters. In scenarios where prices deviate significantly from their moving averages, statistical probability suggests a pullback toward equilibrium may occur, yet the absence of specific band data prevents confirmation of whether this moment represents an overbought condition or merely normal fluctuation within a broader trend. Conversely, if the price remains comfortably inside the envelope boundaries, it implies continued alignment with recent average valuation metrics rather than an extreme outlier status requiring immediate correction. The current reading invites analysis of historical behavior at similar relative levels to gauge the likelihood of future convergence without asserting any definitive directional bias or optimal entry strategy for market participants evaluating this specific data point in isolation.
Quant Health Deep Dive
Profitability & Value Creation
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like IYF or IVW, the fund manager is mechanically forced to buy or sell BRK-B shares regardless of BRK-B's individual fundamentals. We estimate $2.9B of passive capital is structurally linked to BRK-B through 4 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 4 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in BRK-B to visualize passive redemption contagion across ETFs and collateral stocks.
If BRK-B (BRK-B) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies NVIDIA Corp (NVDA) as the most exposed collateral stock, sharing 3 ETFs with BRK-B. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 4 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
BRK-B Ownership Dynamics
ETFs with Highest BRK-B Exposure
Float lock-up computed from 0 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
BRK-B Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for BRK-B over the past year sits near $496.81 (10% of 252-day volume). The current price of $471.51 sits 5.1% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
BRK-B Capital Efficiency
How efficiently does BRK-B convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
BRK-B converts 25% of its EBITDA into free cash flow, a moderate conversion rate — significant EBITDA is consumed by capital expenditures, working capital changes, or interest payments. The 75% reinvestment rate signals aggressive capacity expansion. However, the ROIC-WACC spread is negative (-3.0%), suggesting reinvested capital is destroying shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| BRK.B | 0.999 | 0.998 | High co-movement |
| BRK.A | 0.961 | 0.976 | High co-movement |
| MMC | 0.525 | 0.445 | Moderate |
| AFL | 0.506 | 0.461 | Moderate |
| HIG | 0.499 | 0.469 | Moderate |
| L | 0.495 | 0.402 | Moderate |
| TRV | 0.468 | 0.469 | Moderate |
| VRTPX | 0.458 | 0.308 | Moderate |
| MRSH | 0.447 | 0.416 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare BRK-B to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.