In early 2017, I wrote an article on Berkshire Hathaway's (NYSE:BRK.A) (NYSE:BRK.B) intrinsic value. At the time, I asserted Berkshire was worth $200-215 per share - a valuation range briefly exceeded earlier this year. Several readers asked me to update my analysis to account for changes that have occurred in the interim. Given appreciation of and additions to Berkshire's investment portfolio, higher cash balances, and higher pre-tax earnings coupled with a lower tax rate, I now derive a value modestly in excess of $240 per Class B share or ~24% upside at today's price. Importantly, based on my (very) preliminary estimate of Q2 book value, there would be approximately 10% downside to the share repurchase authorization.

I estimate that Berkshire's operating businesses will generate $19.5 billion in after-tax earnings this year. To calculate this number, I assume non-GEICO insurance businesses break even on an underwriting basis, burden the operating businesses with hold co. interest expense, asset-level amortization, and include estimated equity method earnings, excluding KHC. To this, I apply a 16x multiple for a total value of the operating businesses of $311 billion. Below is a summary calculation of my 2018 estimates:

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