Fair Value and Profit Drivers Greggory Warren, CFA, Sector Strategist, 11 Mar 2022
We’ve increased our fair value estimate for Berkshire Hathaway to $350 per Class B share from $320 after updating our near- to medium-term forecasts for Berkshire’s various operations. Our new fair value estimate is equivalent to 1.41 and 1.25 times our estimates for Berkshire’s book value per share at the end of 2022 and 2023, respectively. For some perspective, during the past 5 (10) years, the shares have traded at an average of 1.41 (1.40) times trailing calendar year-end book value per share. We use a 9.0% cost of equity in our valuation.
Gregg has written a fairly long write up, however it sits behind a pay wall so I can’t post a link.