Shares of Warren Buffet-led conglomerate Berkshire Hathaway (BRK.B -2.85%) (BRK.A -2.74%) have absolutely demolished the market this year. Shares are up 34% year to date. This compares to the S&P 500‘s 16% gain and the Nasdaq Composite‘s 14% rise, as of this writing.

Considering the company’s incredible outperformance, many investors may be convinced they missed the boat. But a close look at Berkshire reveals the stock is still priced attractively, relative to the broader market.

Here’s why Berkshire shares are still worth buying, even as the company’s market capitalization soars past $1 trillion.

A conservative valuation

Conservatively valued companies are getting harder to find. The S&P 500‘s aggregate price-to-earnings ratio (P/E) today, for instance, is 24 — up from 22 this time last year. The Nasdaq 100‘s P/E of 31 is even more frothy. But Berkshire, despite its stock’s recent run-up, still trades conservatively in this richly valued market.

Berkshire’s recent unrealized gains from aggressive sales of stocks in its massive equity portfolio distort its P/E. However, a useful (but not perfect) comparison of its valuation, relative to the overall market’s, can be made by looking at the company’s stock price, compared to its trailing-12-month operating earnings, exclusive of investment gains and losses. This multiple for Berkshire currently sits at about 25.

This is a very low multiple for a company that’s been growing this adjusted operating-earnings figure at a year-over-year growth rate consistently in the double digits recently. Berkshire’s adjusted operating earnings in its most recent quarter grew 15.5% year over year, powered by strong growth in its insurance business. Further, adjusted operating-earnings growth for the first six months of the year, compared to the same period last year, was 26%.

But the best thing about Berkshire stock is that investors aren’t just getting the Berkshire subsidiaries behind this adjusted operating-earnings growth — they’re also getting a huge equities portfolio and a mountain of cash.

A war chest of cash, cash equivalents, and stocks

Wall Street thought Berkshire had a lot of cash last year when the company had $189 billion of cash and cash equivalents on its balance sheet. But today, the conglomerate is sitting on a record $277 billion war chest — a figure that equates to 27% of its current market capitalization.

Note that this excludes the company’s monstrous equity portfolio, which currently stands at an estimated $312 billion. This means Berkshire’s cash, cash equivalents, and marketable securities make up more than half of the company’s market capitalization.

With all of this in mind, Berkshire trades at about 25 times its trailing-12-month adjusted operating earnings and also comes with a $312 billion equity portfolio and $277 billion pile of cash.

Sure, there’s always a risk that Berkshire fails to find enough substantial attractive investments to deploy some of its cash in the future, ultimately weighing on the business performance, relative to its more than $1 trillion market capitalization. But with short-term treasuries yielding more than 5%, there’s no rush to deploy this capital. Berkshire will likely take its sweet time to make a dent in its cash hoard, potentially even waiting for a dislocation in the overall stock market.

Investors, of course, should do their own due diligence and decide for themselves whether they think Berkshire is a good stock. But it’s certainly my top pick.