- SID Score
- 5.8/10
- Fair value
- $718,085.34
- Generated
- Oct 25, 2026
- Model
- claude-haiku-4-5-20251001
Berkshire Hathaway trades at $813,595 with a market capitalization of $1.07 trillion, commanding a P/E ratio of 15.86x that appears reasonable relative to historical valuations. The SID Score of 5.8/10 indicates a below-average composite quality rating, reflecting mixed performance across key investment factors. Fair value estimates suggest approximately 11.7% downside to $718,085, though recent earnings performance has been mixed with notable beats in Q3 and Q4 2025 offset by a Q1 miss. The neutral news sentiment and lack of recent insider activity suggest the market is adopting a cautious stance toward the conglomerate's near-term prospects.
The company's factor grades reveal a modest B-rated Value profile, supporting the relatively compressed valuation multiple, while Growth, Profitability, and Momentum each receive C ratings indicating middling performance in expansion and operational efficiency metrics. Most notably, the Dividend Yield stands at 0.00%, consistent with Berkshire's historical capital retention strategy prioritizing share buybacks and reinvestment over cash distributions. Recent earnings show volatility with Q3 2025 EPS of $9,376.15 substantially beating estimates of $8,945.84, yet Q1 2025 EPS of $6,703.41 missed estimates of $7,430.29, suggesting inconsistent operational performance. The substantial Q4 2024 beat ($10,102.07 actual versus $7,074.28 estimated) indicates strong year-end results but raises questions about estimate reliability and earnings sustainability.
Technical analysis data points including the 14-period RSI and both the 50-day and 200-day moving averages are unavailable, limiting the ability to assess momentum indicators, trend direction, and short-to-medium-term price action. Without these critical moving average crossovers and oscillators, investors cannot definitively determine whether the stock is in an uptrend or downtrend or whether current price levels represent technical support or resistance. The absence of this data represents a significant limitation in timing entry and exit strategies. Price context is provided only through the analyst consensus target of $784,977.72, which implies approximately 3.5% downside from current levels.
Analyst & Insider Sentiment
The analyst consensus rating is Sell with an average price target of $784,977.72, representing a modest 3.5% decline from the current trading price and suggesting limited margin of safety at current valuations. This bearish stance contrasts somewhat with the fair value estimate of $718,085, indicating analyst targets may be less pessimistic than intrinsic value calculations suggest. Notably, there is no recent insider trading activity disclosed, which neither confirms nor contradicts management's confidence in current valuations. The combination of a Sell consensus and neutral news sentiment indicates the investment community views Berkshire as fairly valued to overvalued with limited catalysts for near-term appreciation.
Berkshire Hathaway faces concentration risk inherent in a conglomerate structure spanning insurance, energy, utilities, and equities, where underperformance in any major segment could pressure consolidated earnings and book value. The F rating on Dividends and zero dividend yield pose reinvestment risk for income-focused investors who may require alternative vehicles for cash generation. Earnings volatility as demonstrated in 2025 (ranging from a $6,703 miss to a $10,102 beat) suggests operational unpredictability or estimation challenges that could surprise investors negatively. Additionally, the analyst Sell consensus and 11.7% downside to fair value imply material principal risk if the fair value estimate proves accurate.
Berkshire Hathaway presents a defensible yet uninspiring investment opportunity characterized by solid fundamentals (B-rated value), a reasonable P/E of 15.86x, but limited growth prospects (C-grade) and material downside risk of 11.7% to estimated fair value. The combination of analyst Sell recommendations, neutral sentiment, and earnings volatility does not support new long positions at current price levels near $813,595. Existing shareholders should carefully evaluate positions against the fair value estimate of $718,085 and consider the opportunity cost relative to higher-growth opportunities in the broader market. Conservative investors with a strong conviction in Berkshire's long-term franchise and balance sheet strength might consider accumulating on weakness toward the $718,085 fair value target, but current valuation provides limited margin of safety.
