Don't overlook NYSE:BRK.B—it's a hidden gem with strong fundamentals and an attractive price tag.

Our stock screening tool has pinpointed BERKSHIRE HATHAWAY INC-CL B (NYSE:BRK.B) as an undervalued stock option. NYSE:BRK.B retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Analysis for NYSE:BRK.B

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:BRK.B has achieved a 8 out of 10:

• The Price/Earnings ratio is 0.01, which indicates a rather cheap valuation of BRK.B.
• 100.00% of the companies in the same industry are more expensive than BRK.B, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 25.84, BRK.B is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 0.01, the valuation of BRK.B can be described as very cheap.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of BRK.B indicates a rather cheap valuation: BRK.B is cheaper than 100.00% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of BRK.B to the average of the S&P500 Index (20.78), we can say BRK.B is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRK.B indicates a somewhat cheap valuation: BRK.B is cheaper than 64.08% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of BRK.B may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:BRK.B?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:BRK.B has achieved a 6:

• BRK.B has a Return On Assets of 7.53%. This is amongst the best in the industry. BRK.B outperforms 85.44% of its industry peers.
• BRK.B has a better Return On Equity (14.62%) than 73.79% of its industry peers.
• The Return On Invested Capital of BRK.B (3.97%) is better than 71.84% of its industry peers.
• The last Return On Invested Capital (3.97%) for BRK.B is above the 3 year average (3.32%), which is a sign of increasing profitability.
• BRK.B has a Profit Margin of 21.99%. This is in the better half of the industry: BRK.B outperforms 79.61% of its industry peers.
• BRK.B's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of BRK.B has grown nicely.

Unpacking NYSE:BRK.B's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:BRK.B, the assigned 5 for health provides valuable insights:

• BRK.B has a better Altman-Z score (2.26) than 77.67% of its industry peers.
• BRK.B has a Debt to FCF ratio of 4.67. This is in the better half of the industry: BRK.B outperforms 66.99% of its industry peers.
• BRK.B has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.24, BRK.B is doing good in the industry, outperforming 64.08% of the companies in the same industry.

Growth Examination for NYSE:BRK.B

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:BRK.B has achieved a 6 out of 10:

• The Earnings Per Share has grown by an nice 15.06% over the past year.
• BRK.B shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.98% yearly.
• The Revenue has grown by 18.05% in the past year. This is quite good.
• BRK.B is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.47% yearly.
• BRK.B is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.14% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of BRK.B

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.