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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Philmordun   😊 😞
Number: of 15066 
Subject: BRK's 12/31/2022 P/B Ratio
Date: 01/29/2023 9:24 AM
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Has anyone attempted to derive a "back of the envelope" update for BRK's year-end price-to-book ratio?

While acknowledging that, over time, it is becoming less informative, I believe that both Warren and Mungofitch agree that it continues to be a useful metric for shareholders.

Any such updates would be greatly appreciated.

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Author: rrr12345 ✧  😊 😞
Number: of 15066 
Subject: Re: BRK's 12/31/2022 P/B Ratio
Date: 01/29/2023 2:20 PM
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"Has anyone attempted to derive a "back of the envelope" update for BRK's year-end price-to-book ratio?" I estimate that P/B as of year end was about 1.51, as follows:

I estimate that the equity portfolio lost about 2.7% in Q4. After adjusting for deferred taxes the equity portfolio makes up about 51% of BV.
I estimate that the rest of Berkshire increased in BV by about 2.5% in Q4.
I estimate that the share count declined by about 0.1% in Q4.
The stock price increased by 15.3% in Q4.

We'll know the exact numbers soon.

I see Berkshire as being fairly valued and increasing in IV at about 10%/year.
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Author: Bluehorseshoe ⎊  😊 😞
Number: of 15066 
Subject: Re: BRK's 12/31/2022 P/B Ratio
Date: 01/30/2023 12:21 PM
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Has anyone attempted to derive a "back of the envelope" update for BRK's year-end price-to-book ratio?

Q3BV: $207.28
Q4BV Estimate: ~$214.72
Current Q1BV Estimate: ~$226.00

End of 2022 share price was $308.90 which just happens to be the same as the current quote as I type this. That would put the ratio then and now at 1.49/1.44/1.367 for each of the above. In that respect they all seem to point to roughly median to slightly over median price right now.

However, my price to IV estimate would say current price is slightly under median range. Other's assumptions may vary.

Jeff
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