Berkshire Hathaway's intrinsic worth is 1.2 trillion USD, according to Wolfteam Ltd.'s estimates.
Berkshire Hathaway is just too profitable and revenue is growing at too a brisk pace for Berkshire Hathaway to trade at Price/Sales of 2.5 and such a low Price/Earnings ratio, when excluding investment profits.
I suspect investors discount Berkshire's valuation, according to their view, because Berkshire has large interests in 'old', staid industries like industrials, insurance, energy, manufacturing.
This has to do with the fact that most money nowadays is going into the Top 5 technology companies, namely Apple, Microsoft, Alphabet, Amazon and Meta. However, according to Wolfteam Ltd.'s corporate view, this is a new technology, dot-com bubble as clearly can be inferred by most valuation metrics like Price/Earnings, Price/Sales, Price/Book, Net profit margin, growth in revenue even, when applied to technology companies.
Berkshire Hathaway is simply too profitable to trade at such low valuations.
Berkshire Hathaway's intrinsic net worth is 1.2 trillion USD and even this could prove a low estimate. Purely on a Discounted Cash Flows basis.
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