Key Morningstar Metrics for Berkshire Hathaway
- : USD 510.00Fair Value Estimate
- : ★★★★Morningstar Rating
- : NarrowMorningstar Economic Moat Rating
- : LowMorningstar Uncertainty Rating
Berkshire Hathaway BRK.B announced that it has offered to acquire Taylor Morrison Home Corporation in an all-cash deal that would value the homebuilder at USD 8.5 billion (including the assumption of debt).
Why it matters: This marks CEO Greg Abel’s first true acquisition as Berkshire’s chief executive. He previously worked on the OxyChem deal, an all-cash transaction worth around USD 9.5 billion that did not include the assumption of any debt.
- Berkshire has offered to pay USD 72.50 per share for the outstanding shares of Taylor Morrison, which would be reflective of a total equity value of close to USD 6.8 billion (based on 93.4 million shares outstanding on April 22, 2026) and total enterprise value of around USD 8.5 billion (inclusive of USD 1.5 billion of principal debt outstanding at the end of the first quarter of 2026). The acquisition price represents a 24% premium to Taylor Morrison’s latest closing price of USD 58.50 per share on May 29, 2026. The transaction is expected to close in the back half of the year.
- We also suspect that this will prompt Berkshire to take a harder look at its stock holdings in Lennar (worth USD 928 million) and NVR (USD 68 million), the sale of which could cover around three-quarters of the premium paid for Taylor Morrison. We’d note that Berkshire sold its Union Pacific stock holdings in late 2009 to clear the way for its USD 26.4 billion acquisition of rival railroad BNSF.
The bottom line: We are leaving our USD 765,000 (USD 510) per Class A (B) share fair value estimate for Berkshire’s common stock in place for the time being. The deal is relatively small, with Taylor Morrison’s expected revenue of USD 6.5 billion in 2026 (and expected operating margin of 10.2%) and USD 7.1 billion (10.9% operating margin) in 2027 only slightly higher than our projections for acquired assets in Berkshire’s manufacturing, service, and retailing segment.
