Discounted Cash Flow (DCF) Analysis Unlevered

Berkshire Hathaway Inc. (BRK-B)

$279.07

+6.27 (+2.30%)
All numbers are in Millions, Currency in USD
Stock DCF: 871.61 | 279.07 | undervalue

Operating Data

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 (%)
EBITDA 38,00717,332116,34669,640125,56494,618.67106,359.53119,557.27134,392.66151,068.92
EBITDA (%)
EBIT 28,8197,553106,28259,044114,84680,321.1590,287.88101,491.35114,085.02128,241.38
EBIT (%)
Depreciation 9,1889,77910,06410,59610,71814,297.5216,071.6518,065.9220,307.6422,827.54
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 115,954111,867127,997138,290146,719180,440.98202,831.19227,999.72256,291.30288,093.48
Total Cash (%)
Account Receivables 28,57835,23035,83535,85239,56549,484.0455,624.3262,526.5270,285.2079,006.61
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
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 (%)

Weighted Average Cost Of Capital

Share price $ 279.07
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 7.986
Total Debt 114,262
Total Equity 632,168.58
Total Capital 746,430.58
Debt Weighting 15.31
Equity Weighting 84.69
Wacc

Build Up Free Cash

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
EBITDA 38,00717,332116,34669,640125,56494,618.67106,359.53119,557.27134,392.66151,068.92
EBIT 28,8197,553106,28259,044114,84680,321.1590,287.88101,491.35114,085.02128,241.38
Tax Rate -88.52%-0.50%20.72%23.65%19.60%-5.01%-5.01%-5.01%-5.01%-5.01%
EBIAT 54,330.317,590.7584,259.9745,079.4592,335.6284,345.3194,811.39106,576.16119,800.78134,666.39
Depreciation 9,1889,77910,06410,59610,71814,297.5216,071.6518,065.9220,307.6422,827.54
Accounts Receivable --6,652-605-17-3,713-9,919.04-6,140.28-6,902.20-7,758.67-8,721.41
Inventories ----------
Accounts Payable ----------
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
UFCF 51,810.31-3,819.2477,739.9742,646.4586,064.6269,224.2082,823.5393,100.78104,653.28117,639.30
WACC
PV UFCF 64,568.7972,058.1675,552.2579,215.7883,056.94
SUM PV UFCF 374,451.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.21
Free cash flow (t + 1) 119,992.09
Terminal Value 2,303,111.04
Present Value of Terminal Value 1,626,066.86

Intrinsic Value

Enterprise Value 2,000,518.77
Net Debt 26,078
Equity Value 1,974,440.77
Shares Outstanding 2,265.27
Equity Value Per Share 871.61