BRK-B — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($503.41)
DCF	$1446.23	+187.3%
Graham Number	$18474.79	+3569.9%
Reverse DCF	—	implied g: -6.4%
DDM	—	—
EV/EBITDA	$2.17	-99.6%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $48.62B

Near-term growth (yrs 1–5)(%)Rev: 2.1% / EPS: 17.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.59%

Computed WACC: 7.59%

Cost of equity (Re)8.16%(Rf 4.30% + β 0.70 × ERP 5.50%)

Cost of debt (Rd)3.42%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)89.51%

Debt weight (D/V)10.49%

Results

Intrinsic Value / share$1841.37

Current Price$503.41

Upside / Downside+265.8%

Net Debt (used)-$254.43B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	9.2%	13.2%	17.2%	21.2%	25.2%
7.0%	$1540.46	$1792.45	$2081.59	$2411.90	$2787.68
8.0%	$1275.71	$1475.80	$1705.19	$1967.05	$2264.74
9.0%	$1093.43	$1257.87	$1446.23	$1661.08	$1905.16
10.0%	$960.57	$1099.10	$1257.63	$1438.31	$1643.43
11.0%	$859.63	$978.52	$1114.46	$1269.27	$1444.89

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $31.26

Book Value / share($)Yahoo: $485274.34

Results

Graham Number$18474.79

Current Price$503.41

Margin of Safety+3569.9%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.59%

Terminal growth rate(%)

Computed WACC: 7.59%

Cost of equity (Re)8.16%(Rf 4.30% + β 0.70 × ERP 5.50%)

Cost of debt (Rd)3.42%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)89.51%

Debt weight (D/V)10.49%

Results

Current Price$503.41

Implied Near-term FCF Growth-9.8%

Historical Revenue Growth2.1%

Historical Earnings Growth17.2%

Base FCF (TTM)$48.62B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$503.41

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $103.86B

Target EV/EBITDA multipleCurrent: -2.4×

Net Debt($B)Default: -$254.43B

Results

Implied Equity Value / share$2.17

Current Price$503.41

Upside / Downside-99.6%

Implied EV-$251.45B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$382.43B	-$318.43B	-$254.43B	-$190.43B	-$126.43B
-6.4x	$-207.22	$-253.84	$-300.46	$-347.08	$-393.70
-4.4x	$-55.91	$-102.53	$-149.15	$-195.77	$-242.39
-2.4x	$95.41	$48.79	$2.17	$-44.45	$-91.07
-0.4x	$246.72	$200.10	$153.48	$106.86	$60.24
1.6x	$398.04	$351.42	$304.80	$258.18	$211.56

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