Discounted Cash Flow

Berkshire Hathaway Inc.

BRK.B · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $125.7b $24.1b $19.6b 19.2%
2017 $132.9b (5.7%) $44.9b (86.7%) $34.1b (74.0%) 33.8% (76.6%)
2018 $247.8b (86.5%) $4.0b (-91.1%) $22.9b (-32.9%) 1.6% (-95.2%) $2447.63
2019 $254.6b (2.7%) $81.4b (1924.8%) $22.7b (-0.7%) 32.0% (1870.9%)
2020 $245.6b (-3.5%) $42.5b (-47.8%) $26.8b (17.8%) 17.3% (-45.9%)
2021 $276.2b (12.5%) $89.8b (111.2%) $26.1b (-2.3%) 32.5% (87.8%)
2022 $302.1b (9.4%) $-22.8b (-125.4%) $21.8b (-16.8%) -7.6% (-123.2%)
2023 $364.5b (20.7%) $96.2b (521.7%) $29.8b (36.9%) 26.4% (449.5%)
2024 $371.4b (1.9%) $89.0b (-7.5%) $11.6b (-61.0%) 24.0% (-9.2%)
2025 $371.4b (0.0%) $67.0b (-24.8%) $25.0b (115.6%) 18.0% (-24.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model