FHI PE Ratio & Valuation,Is FHI Overvalued

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 10.48 is considered Fairly compared with the five-year average of 10.66. The fair price of Federated Hermes Inc (FHI) is between 49.00 to 57.67 according to relative valuation methord.

Relative Value

Fair Zone

49.00-57.67

Current Price：51.64

Fair

10.44

6.97

EV/EBITDA

Federated Hermes Inc. (FHI) has a current EV/EBITDA of 6.97. The 5-year average EV/EBITDA is 6.77. The thresholds are as follows: Strongly Undervalued below 4.30, Undervalued between 4.30 and 5.54, Fairly Valued between 8.00 and 5.54, Overvalued between 8.00 and 9.23, and Strongly Overvalued above 9.23. The current Forward EV/EBITDA of 6.97 falls within the Historic Trend Line -Fairly Valued range.

7.26

EV/EBIT

Federated Hermes Inc. (FHI) has a current EV/EBIT of 7.26. 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 7.26 falls within the Historic Trend Line -Fairly Valued range.

2.08

Federated Hermes Inc. (FHI) has a current PS of 2.08. 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 2.08 falls within the Historic Trend Line -Fairly Valued range.

11.12

P/OCF

Federated Hermes Inc. (FHI) has a current P/OCF of 11.12. The 5-year average P/OCF is 9.12. The thresholds are as follows: Strongly Undervalued below 7.23, Undervalued between 7.23 and 8.17, Fairly Valued between 10.06 and 8.17, Overvalued between 10.06 and 11.00, and Strongly Overvalued above 11.00. The current Forward P/OCF of 11.12 falls within the Strongly Overvalued range.

11.53

P/FCF

Federated Hermes Inc. (FHI) has a current P/FCF of 11.53. The 5-year average P/FCF is 9.78. The thresholds are as follows: Strongly Undervalued below 7.30, Undervalued between 7.30 and 8.54, Fairly Valued between 11.01 and 8.54, Overvalued between 11.01 and 12.25, and Strongly Overvalued above 12.25. The current Forward P/FCF of 11.53 falls within the Overvalued range.

Federated Hermes Inc (FHI) has a current Price-to-Book (P/B) ratio of 3.25. Compared to its 3-year average P/B ratio of 2.81 , the current P/B ratio is approximately 15.40% higher. Relative to its 5-year average P/B ratio of 2.77, the current P/B ratio is about 17.10% higher. Federated Hermes Inc (FHI) has a Forward Free Cash Flow (FCF) yield of approximately 6.72%. Compared to its 3-year average FCF yield of 10.02%, the current FCF yield is approximately -32.97% lower. Relative to its 5-year average FCF yield of 9.20% , the current FCF yield is about -26.97% lower.

3.23

P/B

Median3y

2.81

Median5y

2.77

6.72

FCF Yield

Median3y

10.02

Median5y

9.20

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

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of FHI increased by 26.27% 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 9.15%to the performance.

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

15.07%

402.62M → 463.31M

Revenue Growth

2.05%

22.44 → 22.90

Margin Expansion

9.15%

9.96 → 10.87

P/E Change

26.27%

41.11 → 51.91

Mkt Cap Growth

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Frequently Asked Questions

Is Federated Hermes Inc (FHI) currently overvalued or undervalued?

What is Federated Hermes Inc (FHI) fair value?

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. The fair price of Federated Hermes Inc (FHI) is between 49.00 to 57.67 according to relative valuation methord.

How does FHI's valuation metrics compare to the industry average?

What is the current P/B ratio for Federated Hermes Inc (FHI) as of Dec 16 2025?

As of Dec 16 2025, Federated Hermes Inc (FHI) has a P/B ratio of 3.25. This indicates that the market values FHI at 3.25 times its book value.

What is the current FCF Yield for Federated Hermes Inc (FHI) as of Dec 16 2025?

As of Dec 16 2025, Federated Hermes Inc (FHI) has a FCF Yield of 6.72%. This means that for every dollar of Federated Hermes Inc’s market capitalization, the company generates 6.72 cents in free cash flow.

What is the current Forward P/E ratio for Federated Hermes Inc (FHI) as of Dec 16 2025?

As of Dec 16 2025, Federated Hermes Inc (FHI) has a Forward P/E ratio of 10.48. This means the market is willing to pay $10.48 for every dollar of Federated Hermes Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Federated Hermes Inc (FHI) as of Dec 16 2025?

As of Dec 16 2025, Federated Hermes Inc (FHI) has a Forward P/S ratio of 2.08. This means the market is valuing FHI at $2.08 for every dollar of expected revenue over the next 12 months.

FHI Valuation