Below are the valuation targets for Berkshire Hathaway (BRK-A) over the next 10 years.
Our valuation targets for Berkshire Hathaway (BRK-A) in 2019 are:
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$387,760 (overvalued)
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$346,910 (fair value)
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$306,061 (undervalued)
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$248,223 (extreme undervalue)
The valuation targets for Berkshire Hathaway (BRK-A) are based on a theoretical dividend growth rate of 9.90% and applied to Edson Gould’s Altimeter. A graphical representation of the overvalued, fair value, and undervalued levels are below.
The above Altimeter translates into the following undervalued and overvalued ranges since 2007:
10-Year Targets
Observations
Berkshire Hathaway (BRK-A) has an expected price range of $369,661 to 565,658 by 2022-2024. In our prior posting of BRK-A, we had a lower extreme undervalue level. We’ve adjusted it to a high price point to reflect the reduced probability of going to $212,000 or lower.
Last updated: August 10, 2019