Is Berkshire Hathaway, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Berkshire Hathaway, Inc. moved from fair to expensive, indicating that the stock is currently overvalued. The company exhibits a P/E ratio of 22, an EV to EBIT of 17.25, and an EV to EBITDA of 14.05, which are relatively high compared to its peers. For instance, Chubb Ltd. has a P/E of 17.27, while The Allstate Corp. stands at 30.72, suggesting that Berkshire's valuation is on the higher end within the industry context.
Despite Berkshire Hathaway's strong historical performance, with a 5-year return of 132.37% compared to the S&P 500's 91.29%, the recent returns show a lag, particularly in the 1Y period where it returned 5.70% against the S&P 500's 14.08%. This underperformance, combined with its expensive valuation ratios, reinforces the conclusion that the stock is overvalued at this time.