Discounted Cash Flow (DCF) Analysis Levered
Berkshire Hathaway Inc. (BRK-B)
$357.78
-1.64 (-0.46%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 247,837 | 327,223 | 286,256 | 354,636 | 302,089 | 323,675.13 | 346,803.73 | 371,585.01 | 398,137.07 | 426,586.43 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 37,400 | 38,687 | 39,773 | 39,421 | 37,224 | 41,589.47 | 44,561.29 | 47,745.47 | 51,157.19 | 54,812.68 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -14,537 | -15,979 | -13,012 | -13,276 | -15,464 | -15,637.99 | -16,755.42 | -17,952.70 | -19,235.53 | -20,610.03 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 22,863 | 22,708 | 26,761 | 26,145 | 21,760 | 25,951.48 | 27,805.87 | 29,792.77 | 31,921.65 | 34,202.65 |
Weighted Average Cost Of Capital
| Share price | $ 357.78 |
|---|---|
| Beta | 0.867 |
| Diluted Shares Outstanding | 2,203.31 |
| Cost of Debt | |
| Tax Rate | 25.37 |
| After-tax Cost of Debt | 2.65% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.716 |
| Total Debt | 122,744 |
| Total Equity | 788,301.29 |
| Total Capital | 911,045.29 |
| Debt Weighting | 13.47 |
| Equity Weighting | 86.53 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 247,837 | 327,223 | 286,256 | 354,636 | 302,089 | 323,675.13 | 346,803.73 | 371,585.01 | 398,137.07 | 426,586.43 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 37,400 | 38,687 | 39,773 | 39,421 | 37,224 | 41,589.47 | 44,561.29 | 47,745.47 | 51,157.19 | 54,812.68 |
| Capital Expenditure | -14,537 | -15,979 | -13,012 | -13,276 | -15,464 | -15,637.99 | -16,755.42 | -17,952.70 | -19,235.53 | -20,610.03 |
| Free Cash Flow | 22,863 | 22,708 | 26,761 | 26,145 | 21,760 | 25,951.48 | 27,805.87 | 29,792.77 | 31,921.65 | 34,202.65 |
| WACC | ||||||||||
| PV LFCF | 20,658.45 | 20,514.02 | 20,370.59 | 20,228.17 | 20,086.75 | |||||
| SUM PV LFCF | 118,587.24 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.90 |
| Free cash flow (t + 1) | 34,886.70 |
| Terminal Value | 591,300.07 |
| Present Value of Terminal Value | 404,297.17 |
Intrinsic Value
| Enterprise Value | 522,884.41 |
|---|---|
| Net Debt | 86,933 |
| Equity Value | 435,951.41 |
| Shares Outstanding | 2,203.31 |
| Equity Value Per Share | 197.86 |