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 10.17 is considered Fairly compared with the five-year average of 10.65. The fair price of Federated Hermes Inc (FHI) is between 49.51 to 58.30 according to relative valuation methord.
Relative Value
Fair Zone
49.51-58.30
Current Price：50.60
Fair
10.21
PE
1Y
3Y
5Y
Trailing
Forward
6.75
EV/EBITDA
Federated Hermes Inc. (FHI) has a current EV/EBITDA of 6.75. The 5-year average EV/EBITDA is 6.77. The thresholds are as follows: Strongly Undervalued below 4.30, Undervalued between 4.30 and 5.53, Fairly Valued between 8.00 and 5.53, Overvalued between 8.00 and 9.23, and Strongly Overvalued above 9.23. The current Forward EV/EBITDA of 6.75 falls within the Historic Trend Line -Fairly Valued range.
7.03
EV/EBIT
Federated Hermes Inc. (FHI) has a current EV/EBIT of 7.03. The 5-year average EV/EBIT is 7.38. The thresholds are as follows: Strongly Undervalued below 5.34, Undervalued between 5.34 and 6.36, Fairly Valued between 8.40 and 6.36, Overvalued between 8.40 and 9.42, and Strongly Overvalued above 9.42. The current Forward EV/EBIT of 7.03 falls within the Historic Trend Line -Fairly Valued range.
2.02
PS
Federated Hermes Inc. (FHI) has a current PS of 2.02. The 5-year average PS is 1.96. The thresholds are as follows: Strongly Undervalued below 1.51, Undervalued between 1.51 and 1.73, Fairly Valued between 2.18 and 1.73, Overvalued between 2.18 and 2.41, and Strongly Overvalued above 2.41. The current Forward PS of 2.02 falls within the Historic Trend Line -Fairly Valued range.
10.78
P/OCF
Federated Hermes Inc. (FHI) has a current P/OCF of 10.78. The 5-year average P/OCF is 9.11. The thresholds are as follows: Strongly Undervalued below 7.24, Undervalued between 7.24 and 8.17, Fairly Valued between 10.04 and 8.17, Overvalued between 10.04 and 10.98, and Strongly Overvalued above 10.98. The current Forward P/OCF of 10.78 falls within the Overvalued range.
11.18
P/FCF
Federated Hermes Inc. (FHI) has a current P/FCF of 11.18. The 5-year average P/FCF is 9.79. The thresholds are as follows: Strongly Undervalued below 7.27, Undervalued between 7.27 and 8.53, Fairly Valued between 11.04 and 8.53, Overvalued between 11.04 and 12.30, and Strongly Overvalued above 12.30. The current Forward P/FCF of 11.18 falls within the Overvalued range.
Federated Hermes Inc (FHI) has a current Price-to-Book (P/B) ratio of 3.15. Compared to its 3-year average P/B ratio of 2.81 , the current P/B ratio is approximately 11.96% higher. Relative to its 5-year average P/B ratio of 2.77, the current P/B ratio is about 13.82% higher. Federated Hermes Inc (FHI) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 10.03%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 9.22% , the current FCF yield is about -100.00% lower.
3.16
P/B
Median3y
2.81
Median5y
2.77
6.93
FCF Yield
Median3y
10.03
Median5y
9.22
Competitors Valuation Multiple
The average P/S ratio for FHI's competitors is , providing a benchmark for relative valuation. Federated Hermes Inc Corp (FHI) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 15.07%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of FHI increased by 23.50% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 402.62M to 463.31M.
The secondary factor is the P/E Change, contributed 6.38%to the performance.
Overall, the performance of FHI in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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