Berkshire Hathaway Inc. is an American holding company, whose conglomerate includes over 80 companies with activities spanning a wide range of business areas, including insurance and reinsurance, rail freight, energy supply, financial services, manufacturing, and wholesale and retail. The chairman is the major US investor and multi-billionaire Warren Buffett.
P/E ratio for Berkshire Hathaway (BRK-B)
P/E ratio as of October 2023 (TTM): 8.75
According to Berkshire Hathaway 's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 8.7529. At the end of 2021 the company had a P/E ratio of 7.57.
P/E ratio history for Berkshire Hathaway from 2001 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2021 | 7.57 | -41.41% |
| 2020 | 12.9 | 90.07% |
| 2019 | 6.80 | -94.54% |
| 2018 | 124 | 1042.98% |
| 2017 | 10.9 | -34.82% |
| 2016 | 16.7 | 22.39% |
| 2015 | 13.6 | -27.71% |
| 2014 | 18.9 | 26.27% |
| 2013 | 14.9 | -4.05% |
| 2012 | 15.6 | -15.43% |
| 2011 | 18.4 | 22.58% |
| 2010 | 15.0 | -20.95% |
| 2009 | 19.0 | -33.17% |
| 2008 | 28.4 | 75.95% |
| 2007 | 16.2 | 4.98% |
| 2006 | 15.4 | -3.19% |
| 2005 | 15.9 | -14.77% |
| 2004 | 18.7 | 17.29% |
| 2003 | 15.9 | -38.76% |
| 2002 | 26.0 | -81.84% |
| 2001 | 143 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 BlackRock BLK | 18.6 | 112.74% | 🇺🇸 USA |
 Blackstone Group BX | 64.4 | 636.15% | 🇺🇸 USA |
 Brookfield Asset Management BAM | 19.8 | 126.27% | 🇨🇦 Canada |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.