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US Equities · Finance research note

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Free Float 0.00B
Short Int % Utilisation 0.96%

2.2 Growth

Metric Value
EV/EBITDA 6.05

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $410.52B $424.23B
Net income Reported net income $66.97B $89.00B
Total assets Year-end reported balance $1,222.18B $1,153.88B
Shareholders’ equity Year-end reported balance $717.42B $649.37B
Net margin Net income ÷ revenue 16.31% 20.98%
Asset turnover Revenue ÷ total assets 0.3359x 0.3677x
Equity multiplier Total assets ÷ shareholders’ equity 1.7036x 1.7769x
ROE Net margin × asset turnover × equity multiplier 9.33% 13.70%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: FCFF DCF is not the primary valuation method for financial institutions or REITs. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $503.29
Market capitalisation $1,077.40B
Revenue $410.52B
EBIT $87.53B
Reported free cash flow $25.04B
FCF yield 2.32%
Net debt / EBITDA NM

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:25:08.620328 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -7.19% 2.53%
Adjusted R² 0.07 0.15
Annualised residual volatility 13.84% 13.13%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.19 (2.28) 0.40 (4.46)
Size (SMB) -0.09 (-0.79) -0.07 (-0.58)
Value (HML) 0.40 (4.19) 0.20 (1.80)
Profitability (RMW) NM 0.38 (4.05)
Investment (CMA) NM 0.28 (1.74)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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