FHI Valuation

Federated Hermes Inc

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51.250

+0.38(0.747%)1D

Overview
Forecast
Valuation
Earnings

FHI Relative Valuation

FHI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, FHI is overvalued; if below, it's undervalued.

Historical Valuation

Federated Hermes Inc (FHI) is now in the Fair zone, suggesting that its current forward PE ratio of 11.13 is considered Fairly compared with the five-year average of 10.48. The fair price of Federated Hermes Inc (FHI) is between 47.06 to 56.43 according to relative valuation methord.

Relative Value

Fair Zone

47.06-56.43

Current Price：51.25

Fair

11.13

Trailing

Forward

7.50

EV/EBITDA

Federated Hermes Inc. (FHI) has a current EV/EBITDA of 7.50. The 5-year average EV/EBITDA is 6.65. The thresholds are as follows: Strongly Undervalued below 4.13, Undervalued between 4.13 and 5.39, Fairly Valued between 7.91 and 5.39, Overvalued between 7.91 and 9.18, and Strongly Overvalued above 9.18. The current Forward EV/EBITDA of 7.50 falls within the Historic Trend Line -Fairly Valued range.

8.50

EV/EBIT

Federated Hermes Inc. (FHI) has a current EV/EBIT of 8.50. The 5-year average EV/EBIT is 7.28. The thresholds are as follows: Strongly Undervalued below 5.14, Undervalued between 5.14 and 6.21, Fairly Valued between 8.35 and 6.21, Overvalued between 8.35 and 9.43, and Strongly Overvalued above 9.43. The current Forward EV/EBIT of 8.50 falls within the Overvalued range.

2.18

Federated Hermes Inc. (FHI) has a current PS of 2.18. The 5-year average PS is 1.93. The thresholds are as follows: Strongly Undervalued below 1.47, Undervalued between 1.47 and 1.70, Fairly Valued between 2.16 and 1.70, Overvalued between 2.16 and 2.39, and Strongly Overvalued above 2.39. The current Forward PS of 2.18 falls within the Overvalued range.

10.88

P/OCF

Federated Hermes Inc. (FHI) has a current P/OCF of 10.88. The 5-year average P/OCF is 8.92. The thresholds are as follows: Strongly Undervalued below 7.15, Undervalued between 7.15 and 8.04, Fairly Valued between 9.80 and 8.04, Overvalued between 9.80 and 10.68, and Strongly Overvalued above 10.68. The current Forward P/OCF of 10.88 falls within the Strongly Overvalued range.

11.23

P/FCF

Federated Hermes Inc. (FHI) has a current P/FCF of 11.23. The 5-year average P/FCF is 9.68. The thresholds are as follows: Strongly Undervalued below 7.00, Undervalued between 7.00 and 8.34, Fairly Valued between 11.02 and 8.34, Overvalued between 11.02 and 12.36, and Strongly Overvalued above 12.36. The current Forward P/FCF of 11.23 falls within the Overvalued range.

Federated Hermes Inc (FHI) has a current Price-to-Book (P/B) ratio of 3.38. Compared to its 3-year average P/B ratio of 2.79 , the current P/B ratio is approximately 21.19% higher. Relative to its 5-year average P/B ratio of 2.69, the current P/B ratio is about 25.47% higher. Federated Hermes Inc (FHI) has a Forward Free Cash Flow (FCF) yield of approximately 7.38%. Compared to its 3-year average FCF yield of 10.09%, the current FCF yield is approximately -26.85% lower. Relative to its 5-year average FCF yield of 9.61% , the current FCF yield is about -23.16% lower.

3.38

P/B

Median3y

2.79

Median5y

2.69

7.38

FCF Yield

Median3y

10.09

Median5y

9.61

Competitors Valuation Multiple

The average P/S ratio for FHI's competitors is 4.22, providing a benchmark for relative valuation. Federated Hermes Inc Corp (FHI) exhibits a P/S ratio of 2.18, which is -48.46% above the industry average. Given its robust revenue growth of 9.10%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Golub Capital BDC Inc

Artisan Partners Asset Management Inc

Victory Capital Holdings Inc

3.06

59.92%

4.72B

Performance Decomposition

Market capitalization of FHI increased by 50.54% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.96 to 22.85.

The secondary factor is the Revenue Growth, contributed 9.10%to the performance.

Overall, the performance of FHI in the past 1 year is driven by Margin Expansion. Which is more sustainable.

9.10%

387.87M → 423.16M

Revenue Growth

360.69%

4.96 → 22.85

Margin Expansion

-319.25%

-5.14 → 11.26

P/E Change

50.54%