Dual Share Class Companies

Hi all, been thinking a bit about companies with two classes of shares (Class A / Class B) and implications for modelling and am a little confused. Would much appreciate any insights on the below points:

1) For a company like Berkshire Hathaway where there's a huge difference in price / rights between classes, would you look at market cap as (Class A share price * Class A shares) + (Class B share price * Class B shares)? Would your P/E ratio be the same for each share class (market cap / net income) or is it different for each share class?

2) From a LBO perspective, your offer price would be different for each class, right?

Thank you!

 
Most Helpful

Sed voluptatibus veniam recusandae aliquid placeat. Autem sapiente sit veniam sit. Error et ex sint consequuntur ipsam atque.

Excepturi veniam qui eum odit. Eius perspiciatis atque dolorum quo. Beatae in voluptatem aperiam odit voluptate amet culpa dicta.

Total Avg Compensation

April 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (90) $280
  • 2nd Year Associate (205) $268
  • 1st Year Associate (387) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (314) $59

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
GameTheory's picture
GameTheory
98.9
8
kanon's picture
kanon
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
numi's picture
numi
98.8