Is Berkshire Hathaway Inc. (BRK-A) the Highest-Priced Stock Right Now?

As an avid investor, I often find myself wondering which stocks are currently the most expensive, and whether their high prices are justified. One stock that has caught my attention recently is Berkshire Hathaway Inc. (BRK-A), the Class A shares of the renowned holding company led by legendary investor Warren Buffett. But is BRK-A truly the highest-priced stock right now? Let's dive in and find out.

First, let's take a look at the current stock price of BRK-A. As of January 24, 2025, the latest closing stock price for BRK-A is a staggering 694601.50. To put this into perspective, let's compare it to some other high-priced stocks:

* Tesla Inc. (TSLA) - 719.146.00
* Alphabet Inc. (GOOGL) - 118.45
* Microsoft Corporation (MSFT) - 291.32
* Amazon.com Inc. (AMZN) - 137.45

At first glance, it seems that BRK-A is indeed the highest-priced stock among these tech giants. However, it's essential to consider the market capitalization of these companies to determine if their high prices are justified. Let's take a look at the market cap of each company:

* BRK-A - $1.03 trillion
* TSLA - $617.47 billion
* GOOGL - $1.44 trillion
* MSFT - $2.27 trillion
* AMZN - $1.41 trillion

When we compare the market capitalization of these companies, it becomes clear that BRK-A's high price is not justifiable based on its market cap alone. In fact, BRK-A's market cap is significantly higher than that of TSLA, GOOGL, MSFT, and AMZN, which suggests that its high price may be overvalued.

To further investigate this, let's take a look at some valuation ratios for BRK-A:

* Price-to-Earnings (P/E) Ratio: 9.68
* Price-to-Book (P/B) Ratio: 1.64
* Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Ratio: 5.57
* Free Cash Flow (FCF) Yield: 2.03%

When we compare these valuation ratios to those of other companies in the financial services sector and the broader market, we find that BRK-A's ratios are generally lower than the averages. This suggests that BRK-A may be undervalued compared to its peers.

To illustrate this, let's take a look at the average valuation ratios for the financial services sector and the broader market:

* Financial Services Sector:
+ P/E Ratio: 13.00
+ P/B Ratio: 2.00
+ EV/EBITDA Ratio: 10.00
+ FCF Yield: 3.00%
* Broader Market:
+ P/E Ratio: 15.00
+ P/B Ratio: 2.50
+ EV/EBITDA Ratio: 12.00
+ FCF Yield: 3.50%

As we can see, BRK-A's valuation ratios are lower than the averages for both the financial services sector and the broader market. This indicates that BRK-A may be undervalued compared to its peers, and that its high price may not be justified based on its valuation ratios alone.

In conclusion, while BRK-A is currently the highest-priced stock among some tech giants, its high price may not be justified based on its market capitalization and valuation ratios. When compared to other companies in the financial services sector and the broader market, BRK-A's valuation ratios suggest that it may be undervalued. However, it's essential to consider other factors, such as the company's growth prospects, risk profile, and competitive advantages, when making investment decisions. As an investor, I would recommend doing thorough research and considering multiple factors before making any investment decisions.