Berkshire Hathaway (BRK.B) Simple Sum-of-the-Parts Valuation | Q2 2026

Been doing my own SOTP on Berkshire using Q2 2026 earnings. Wanted to share the framework and see what others think about the multiples. Let me know if you think this is too optimistic or conservative.

**The Four Operating Segments (Q2 2026, annualized)**

Segment Q2 2025 Q2 2026 YoY Multiple Value
Insurance (underwriting + investment income) $21,464M $19,200M -10.5% 10x $192B
BNSF $5,888M $6,240M +6.0% 16x $100B
Energy (BHE) $2,808M $3,564M +26.9% 10x $36B
Manufacturing / Service / Retail $14,420M $17,880M +24.0% 16x $286B

**Subtotal operating businesses: \~$614B**

**Add the balance sheet**

**•** Cash & short-term Treasuries: $359B
**•** Public equity portfolio (13F, June 30): $299B

**Total SOTP: \~$1.272 trillion**

Divided across \~2.148B B-equivalent shares = **$592/share intrinsic value**

**Sanity check: Buffett’s buyback guidance**

WB’s stated buyback threshold is 1.2x book value. Book value per B-share right now is \~$348. That gives you a rough floor of \~$418/share.

Averaging my SOTP estimate ($592) with the Buffett floor ($418) gives a **blended conservative intrinsic value of \~$505/share.**

BRK.B is trading around **$506** right now, so maybe this is a reasonable framework.

TLDR; using my framework the stock is basically trading right at a blended fair value. It’s not cheap, but certainly not expensive. It seems like a reasonable bet in a super volatile market dominated by one sub-sector of the market (AI hardware/infrastructure). The bear case is insurance earnings continue to soften and energy stays weighed down by PacifiCorp wildfire liability. The bull case is MSR keeps growing (OxyChem acquisition closed January 2026) and BNSF freight volume holds.

Happy to discuss the multiples. I used 10x for insurance and energy, 16x for BNSF and MSR, which felt reasonable against peers.