Berkshire Hathaway Inc‘s CAPE ratio

The CAPE (Cyclically Adjusted Price-to-Earnings) ratio of Berkshire Hathaway Inc. (BRK.B) is a valuation metric that compares the company’s stock price to its average inflation-adjusted earnings over the past 10 years. This ratio helps investors assess whether the stock is overvalued or undervalued based on long-term earnings trends. A high CAPE ratio could suggest overvaluation—reflecting confidence in Berkshire’s diversified portfolio and steady cash generation—while a low ratio might indicate undervaluation or market caution. By analyzing Berkshire’s CAPE ratio, investors can make more informed decisions about its future growth prospects relative to its historical earnings performance.