Mar 4, 2009
Survey: Berkshire Hathaway’s Intrinsic Value
For weeks, Warren Buffett’s Berkshire Hathaway (NYSE:) has come under attack. Most bearish investors point to a series of European-style put options as the main culprit for the panic surrounding Berkshire. It’s likely that all of this commotion is simply that, panic. With that in mind, here is a series of intrinsic value estimates for Berkshire, put together by Daniel Roberts (be sure to thank Daniel for his great work) of the . As you can see, even with varying models for determining the value of Berkshire, they all seem to imply that Berkshire Hathaway is trading at 50-64% of its intrinsic value.
as of 03/04/08
* Used for calculating the average of the estimates and for constructing a histogram. If the author does not imply a preference, then the inferred best estimate is taken to be the midpoint of the stated range. If the author implies a preference, then the value is inferred from the author’s wording.
Summary
Number of Estimates: 7
Range: $117,000 – $148,000
Average: $131,000
Standard Deviation: 11
Median: $128,000
File link: Summary List for IV Estimates of Berkshire Hathaway Dec 2008
Do you have your own thoughts on what Berkshire Hathaway is worth? Feel free to use the comments section of this post.
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