Federated Investors Inc B (FHI) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Federated Investors Inc B stock $62.12, price $63.99, that is 2.9% below the price, quality 88 out of 100. Rating: fairly valued. Calculated from audited financials with 10 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $23.92 – $65.73 · fair‑value band $46.61 – $87.79 · the $63.99 price screens above the $62.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Federated Hermes, Inc. is a publicly owned investment manager.
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Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.
Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios.
Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies.
The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments.
Federated Hermes, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City; Chicago, Illinois and London, United Kingdom.
Stock analysis
Federated Investors Inc B (FHI) currently trades at $63.99, while our model-based Fair Value estimate is $62.12, so the stock looks roughly fairly valued today (gap 3.0%).
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Valuation
Bull case: the Multiples group reads highest at a median of $70.23 per share, and 3 of the 10 models we run sit above the $63.99 price.
Bear case: the Dividend Discount group reads lowest at $17.02, and 7 of the 10 models stay below the price. Data coverage for this calculation is high.
Scenario range: $46.61 (bear) to $87.79 (bull), the price of $63.99 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 88/100 (high quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Federated Investors Inc B reported revenue of $1.8B in FY2025 versus $1.3B in FY2021, a compound +8.6%/yr. Reported net income was $403M in FY2025, compounding +10.5%/yr from FY2021.
Key figures
Market cap $4.6B Mid · P/E ratio 11.6 · P/S ratio 2.38 · EPS (TTM) $5.53 · Dividend yield 2.2% · Net margin 21.3% · Return on equity 31.1% · Return on assets (EBIT) 18.8% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 88 out of 100 (low confidence).
What moves the price
The share trades about 3% below its 52-week high and 37% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at −3%, FHI screens cheaper than that median.
Fair Value models
Bear$46.61Fair Value $62.12Bull$87.79
Price $63.99 · Downside -2.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($3.53 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 4 officers or directors sold shares worth $2.1M and none bought.
SalePeter J GermainEVP, CLO & Sec.4× since Nov 19, 2025: 17,265 shares, avg. $54.33$938,031Aug 20, 2026
SaleSaker Anwar NusseibehCEO, Federated Hermes Limited5× since Nov 19, 2025: 32,402 shares, avg. $56.71$1.8MAug 4, 2026
SaleStephen Van MeterVP, Chief Compliance Officer3× since Nov 19, 2025: 2,837 shares, avg. $56.21$159,464Jun 23, 2026
SalePaul A UhlmanVice President5× since Nov 19, 2025: 97,793 shares, avg. $55.85$5.5MJun 16, 2026
SaleBryan M BurkeVice President4,000 shares at $54.20$216,800May 7, 2026
SaleThomas R DonahueVP, CFO & Treasurer, Director30,000 shares at $57.10$1.7MMar 13, 2026
SaleRichard A NovakPrincipal Accounting Officer3× since Nov 19, 2025: 16,116 shares, avg. $54.74$882,241Mar 5, 2026
SaleDolores D DudiakVice President2× since Nov 19, 2025: 5,999 shares, avg. $51.51$309,022Dec 12, 2025
SaleTheodore W Zierden IIIVice President3,721 shares at $47.84$178,013Nov 19, 2025
SaleJohn B FisherVice President, Director7,638 shares at $47.87$365,631Nov 19, 2025
Plus 2 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+11.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.6%
Start year 2020 (pandemic). Over 10 years: +6.9% a year
Revenue growth 28 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.5%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+11.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.7%
Dividend (yield on the price)2.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.13.2% vs 12.3%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.29% → 30%
2025 sits 59% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+1.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −0.9% a year for the price and +2.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (87 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: The business draws strength from its money market funds that benefit from sustained high interest rates, yet its main weakness lies in thin evidence of a durable moat amid industry fee pressures.
Main risk: Industry fee pressure threatens revenue and profitability across the core asset management operations that rely on money market and related funds.
Federated Hermes draws a large part of its revenue from money market funds that gain when interest rates remain high. It is also entering tokenized securities through a partnership that targets the first product launch in early 2027. Will the steady cash-management business continue to anchor results or will the new offerings reshape the mix?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Asset Management · 588 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score88 · Top 25%
Fair Value upside−2.9% · Below median
Profitability
Return on equity (12 months)31.1% · Top 25%
Return on assets17.6% · Top 25%
Net margin (12 months)21.3% · Below median
Operating margin (12 months)27.7% · Below median
Growth and dividend
Revenue growth (quarter YoY)18.3% · Above median
Dividend yield (12 months)2.2% · Below median
Balance sheet
Debt / equity0.29× · Above median
Valuation Multiplesvs Asset Management median · lower = cheaper
P/E (12 months)11.6× · Cheaper than median
P/B3.85× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)2.38× · Cheaper than median
Price / free cash flow (fiscal year)15.6× · Pricier than median
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Cite: Fair Value Calculator (2026). "Federated Investors Inc B Fair Value". https://www.fairvalue-calculator.com/stock/FHI
Frequently asked questions
Is Federated Investors Inc B (FHI) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $62.12 versus a price of $63.99, about 3% lower (fairly valued).
What is the fair value of FHI?
Our model-based fair value for Federated Investors Inc B is $62.12 (as of Nov 8, 2026), built from audited fundamentals. The current price: $63.99.
What is the quality score of FHI?
Federated Investors Inc B has a Quality Score of 88/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Federated Investors Inc B (FHI)?
Our model-based price target is the fair value of $62.12 (as of Nov 8, 2026) from 10 valuation models. Cautious scenario $46.61, optimistic scenario $87.79. It is a calculation from audited fundamentals, not an analyst target.
What is the Federated Investors Inc B stock forecast for 2026?
Our models put fair value at $62.12, about 3% lower versus a price of $63.99 (fairly valued). Cautious scenario $46.61, optimistic scenario $87.79. The calculation is refreshed regularly with new filings.
What is the revenue of Federated Investors Inc B (FHI)?
Federated Investors Inc B reported trailing-twelve-month revenue of about $1.9B (latest available figure, as of Nov 8, 2026).
Does Federated Investors Inc B pay a dividend?
Federated Investors Inc B currently shows a dividend yield of 2.19% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Federated Investors Inc B (FHI) and when is the ex-dividend date?
Federated Investors Inc B pays a dividend of $1.40 per share a year, a dividend yield of 2.2%. The last ex-dividend date was Nov 6, 2026. A dividend has been paid every year since at least 1998. The payout ratio is 27.0% of earnings (on adjusted earnings, reported 25.3%). Free cash flow covers the dividend 2.82 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Federated Investors Inc B (FHI)?
For today's price to be fair in a discounted-cash-flow model, Federated Investors Inc B would have to grow free cash flow by +1.5 % per year for five years (discount rate 8.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.6 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of FHI use?
Our models discount Federated Investors Inc B at 8.9 %: a base by market capitalisation (mid), damped by beta 0.64, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Federated Investors Inc B that is +1.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.9 %) and the same formula as our fair value.
How much growth has Federated Investors Inc B (FHI) delivered so far?
Over the past 5 years revenue at Federated Investors Inc B grew +4.6 % a year. The price currently implies free-cash-flow growth of +1.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Federated Investors Inc B (FHI) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into Federated Investors Inc B (+1.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Federated Investors Inc B (FHI)?
The free-cash-flow yield on the price is 6.40 %: that much free cash flow Federated Investors Inc B produces per unit of market value. When it exceeds the discount rate of our models (8.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Federated Investors Inc B (FHI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Federated Investors Inc B it is $62.12 per share (as of Nov 8, 2026), against a price of $63.99. It is the blended result of 10 valuation models in 6 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit).
Is Federated Investors Inc B stock overvalued or undervalued in 2026?
As of Nov 8, 2026, FHI trades above its calculated fair value: price $63.99, fair value $62.12, a gap of about −3% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of FHI?
No. The price is what the market pays today ($63.99); the fair value is what the company's own numbers justify ($62.12). For Federated Investors Inc B the two are $1.87 per share apart. That gap is exactly why we show both numbers side by side.
How much is Federated Investors Inc B worth?
The market values Federated Investors Inc B at about $4.6B (market capitalisation, as of Nov 8, 2026). Per share that is $63.99; our models calculate a fair value of $62.12 per share.
What do the bullish and bearish scenarios say about FHI?
Our models span a range for Federated Investors Inc B: cautious scenario $46.61, base $62.12, optimistic $87.79 per share (as of Nov 8, 2026, price $63.99). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FHI?
Federated Investors Inc B trades at a price-to-earnings ratio of 11.6 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $62.12 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 12.5 (reported for FY2025: 11.7). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 7 of the years ex one-offs: 11.1. Other multiples: PEG 1.4, P/B 3.9, P/S 2.4, EV/EBITDA 7.9.
What is the PEG ratio of FHI?
The PEG ratio of Federated Investors Inc B is 1.37 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Federated Investors Inc B (FHI)?
Balance-sheet figures for Federated Investors Inc B (as of Nov 8, 2026): return on equity 31.1%, debt of 0.29 per unit of equity. They feed the Quality Score of 88/100, which measures business quality independently of the share price.
How far is FHI from its 52-week high?
Federated Investors Inc B trades at $63.99, about 3% below its 52-week high of $65.73 and 37% above the low of $46.63 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $62.12 is for.
Which stocks are comparable to Federated Investors Inc B?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Asset Management Ltd, KKR & Co, Apollo Global Management, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Federated Investors Inc B stock attractive at the current price?
The data as of Nov 8, 2026: price $63.99, calculated fair value $62.12 (−3%), Quality Score 88/100, from 10 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of FHI calculated?
We run Federated Investors Inc B through 10 models from 6 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit. Every model gets the same audited fundamentals; the fair value of $62.12 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Federated Investors Inc B itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Federated Investors Inc B (FHI)?
The closing price on Nov 6, 2026 was $63.99. Our model-based fair value is $62.12, about 3% lower (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Federated Investors Inc B right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($46.61 to $87.79) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Federated Investors Inc B (FHI) come from?
Earnings per share at Federated Investors Inc B grew +9.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.0 %, EBIT margin −1.5 %, tax rate +1.7 %, residual (interest, one-offs) +0.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Federated Investors Inc B
How large is the market capitalisation of Federated Investors Inc B (FHI)?
The market capitalisation of Federated Investors Inc B is $4.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Federated Investors Inc B (FHI)?
The price-to-sales ratio of Federated Investors Inc B is 2.38 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Federated Investors Inc B (FHI)?
Earnings per share at Federated Investors Inc B are $5.53 (price ÷ EPS = P/E 11.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Federated Investors Inc B (FHI)?
The dividend yield of Federated Investors Inc B is 2.2% (payout 27.0%, on adjusted earnings, reported 25.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Federated Investors Inc B (FHI)?
The net margin of Federated Investors Inc B is 21.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Federated Investors Inc B (FHI)?
The return on equity (ROE) of Federated Investors Inc B is 31.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Federated Investors Inc B (FHI)?
On an EBIT basis the return on assets of Federated Investors Inc B is 18.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Federated Investors Inc B (FHI)?
The operating margin of Federated Investors Inc B is 27.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Federated Investors Inc B (FHI)?
Revenue at Federated Investors Inc B is growing +18.3% versus a year earlier (3y avg +7.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Federated Investors Inc B (FHI)?
Earnings per share at Federated Investors Inc B are growing +19.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Federated Investors Inc B (FHI) hold?
Federated Investors Inc B holds more cash than debt, $127M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 8, 2026