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Breakdown · BRK-B

Berkshire Hathaway

WACC
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
Year CF Discount factor PV Cumulative PV
1 16.52 0.9114 15.05 15.05
2 17.28 0.8306 14.35 29.40
3 18.07 0.7570 13.68 43.08
4 18.90 0.6900 13.04 56.12
5 19.77 0.6288 12.43 68.55
6 20.68 0.5731 11.85 80.40
7 21.63 0.5223 11.30 91.70
8 22.62 0.4760 10.77 102.47
9 23.66 0.4339 10.26 112.73
10 24.74 0.3954 9.78 122.51
11 25.36 0.3604 9.14 131.65
12 26.00 0.3285 8.54 140.19
13 26.65 0.2993 7.98 148.17
14 27.31 0.2728 7.45 155.62
15 27.99 0.2486 6.96 162.58
16 28.69 0.2266 6.50 169.08
17 29.41 0.2065 6.07 175.16
18 30.15 0.1882 5.67 180.83
19 30.90 0.1716 5.30 186.13
20 31.67 0.1564 4.95 191.09
REVERSE DCF

At $512.37, the market implies a stage-1 growth rate of 19.3%.

MARKET IMPLIES
19.3%
YOUR ASSUMPTION
4.6%
DELTA
+14.7pp

If $512.37 is correct and your other inputs (WACC 9.7%, 10+10y, terminal 2.5%) hold, the market needs BRK-B to grow cash flow at 19.3% annually for the next 10 years.