Berkshire Hathaway Inc. (BRK-B): fair value, margin of safety and Wheel Score

Is BRK-B undervalued?

At 526.06 (close of 16 Oct 2026), BRK-B trades 100% below the GLS average fair value of 159,578.30. That average comes from 8 models run on the latest filings, and 4 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Berkshire Hathaway Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 8 models disagree widely: Lynch gives 36.21 while Graham Number gives 837,879.05. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files BRK-B under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for BRK-B

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is weak: BRK-B passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 4.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are moderate - ROIC 7.8%, ROE 9.3%, ROA 5.5% - with debt at 0.19 times equity and a free-cash-flow yield of 2.1%.

Berkshire Hathaway Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Berkshire Hathaway Insurance Group 26%, Manufacturing Businesses 22%, Pilot Travel Centers ("Pilot) 15% (quarter Q2 FY2026).

Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 9/10 on the GLS smart-money scales; the last recorded insider buy was on 21 Sep 2026; the last recorded Congressional buy was on 7 Aug 2026.

Wheel Score 39: No options

BRK-B has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 4.2M shares a day on a market cap of $1.13T, with a beta of 0.60 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 7 Nov 2026 (before the open), 22 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Insurance - Diversified

The 12 companies below are the closest to Berkshire Hathaway Inc. by market cap within the Insurance - Diversified industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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