Discounted Cash Flow (DCF) Analysis Levered

Berkshire Hathaway Inc. (BRK-B)

$267.02

-2.56 (-0.95%)
All numbers are in Millions, Currency in USD
Stock DCF: 431.92 | 267.02 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 242,137225,382327,223286,256354,636398,641.39448,107.23503,711.10566,214.63636,473.98
Revenue (%)
Operating Cash Flow 45,77637,40038,68739,77339,42157,669.0564,824.9772,868.8581,910.8692,074.85
Operating Cash Flow (%)
Capital Expenditure -11,708-14,537-15,979-13,012-13,276-19,499.60-21,919.23-24,639.10-27,696.47-31,133.21
Capital Expenditure (%)
Free Cash Flow 34,06822,86322,70826,76126,14538,169.4542,905.7448,229.7554,214.3960,941.64

Weighted Average Cost Of Capital

Share price $ 267.02
Beta 0.936
Diluted Shares Outstanding 2,265.27
Cost of Debt
Tax Rate 19.60
After-tax Cost of Debt 2.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.224
Total Debt 114,262
Total Equity 604,872.09
Total Capital 719,134.09
Debt Weighting 15.89
Equity Weighting 84.11
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 242,137225,382327,223286,256354,636398,641.39448,107.23503,711.10566,214.63636,473.98
Operating Cash Flow 45,77637,40038,68739,77339,42157,669.0564,824.9772,868.8581,910.8692,074.85
Capital Expenditure -11,708-14,537-15,979-13,012-13,276-19,499.60-21,919.23-24,639.10-27,696.47-31,133.21
Free Cash Flow 34,06822,86322,70826,76126,14538,169.4542,905.7448,229.7554,214.3960,941.64
WACC
PV LFCF 35,546.1437,210.7738,953.3540,777.5342,687.15
SUM PV LFCF 195,174.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.38
Free cash flow (t + 1) 62,160.47
Terminal Value 1,155,399.09
Present Value of Terminal Value 809,310.22

Intrinsic Value

Enterprise Value 1,004,485.16
Net Debt 26,078
Equity Value 978,407.16
Shares Outstanding 2,265.27
Equity Value Per Share 431.92