Federated Hermes, Inc.

UNDERVALUEDFHI · NYSE · Financial Services
FHI·NYSE·Financial Services
UNDERVALUED
Federated Hermes, Inc.
18.9%upside
MARKET PRICE
$57.99
FAIR PRICE
$68.94
MARGIN
$10.95
UNDERVALUEDFAIROVERVALUED
P/E RATIO
11.8x
DIV. YIELD
2.41%
ROE
34.1%
MARKET CAP
$4B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

18.9%upside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$57.99

FAIR PRICE

$68.94

MARGIN

$10.95

UNDERVALUEDFAIROVERVALUED

P/E Ratio

11.8x

What is P/E? →

Div. Yield

2.41%

ROE

34.1%

Exceptional

Market Cap

$4B

Mid-cap

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FPI RATING

7.4/ 10

High-quality fundamentals and low debt levels, but limited growth momentum.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$55.15CONSERVATIVE ENTRY
$68.94FAIR PRICE
$57.99MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$55.15

Fair price × 0.80

DISTANCE

4.9%

Price to entry level

At the current price of $57.99, FHI trades 4.9% above the conservative entry level of $55.15. This entry level represents a 20% margin of safety below the calculated fair price of $68.94 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate FHI's fair price

Federated Hermes, Inc.'s fair price of $68.94 is derived from a blended model that combines DCF analysis (50%), relative valuation against Financial Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $57.99, FHI trades 18.9% below its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting FHI's risk profile.

RELATIVE · 30%

Comparing FHI's valuation multiples against Financial Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for FHI, weighted by recency and analyst accuracy.

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Want to test your own assumptions? Use our free calculators to estimate FHI's fair value with your own inputs.

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FAQ

What is the fair price of FHI?+

Based on our blended model combining DCF analysis (50%), relative valuation against Financial Services peers (30%), and analyst consensus (20%), the fair price for Federated Hermes, Inc. is $68.94. At the current market price of $57.99, FHI trades 18.9% below its calculated fair value.

Is FHI overvalued or undervalued?+

Federated Hermes, Inc. is currently undervalued based on our valuation model. The stock trades at $57.99, which is 18.9% below the fair price of $68.94. The P/E ratio of 11.8x is a key metric in the valuation.

What is the margin of safety for FHI?+

With a 20% margin of safety applied to the fair price of $68.94, the conservative entry level for FHI is $55.15. At the current market price of $57.99, the stock trades 4.9% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is FHI's fair price updated?+

We update fair price calculations for FHI daily after market close. The current fair price of $68.94 incorporates the latest market data and sector multiples.

What factors affect FHI's fair price calculation?+

FHI's fair price of $68.94 is derived from DCF analysis (50% weight), relative valuation against Financial Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 11.8x, ROE of 34.1%, and dividend yield of 2.41%.

Is FHI a good buy right now?+

At $57.99, FHI trades 18.9% below our fair value estimate of $68.94. The stock is currently undervalued. ROE stands at 34.1% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.

Does FHI pay dividends?+

FHI has a dividend yield of 2.41%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.