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Henderson Far East Income Limited (HFEL) Fair Value & Analysis

Financial Services · GB · Market cap 575M GBX

HF Henderson Far East Income Limited HFEL · LSE
Price£2.62
Fair Value£2.61
Upside-0.4%
Quality68/100
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Mixed Growth
Highly profitable · 92.4% net margin
generates free cash flow
7.15% dividend yield
Ranks above peers (8/13)
Wide moat 90/100
Evidence: High Range £1.96 – £3.26 Share as image

Fair value as of: Jul 11, 2026

From 11 valuation models · updated 29 days ago

Fair value updated Jul 11, 2026, revised from £2.72 to £2.61 (−4.0%) since Jun 26, 2026. Share price −1.0% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£2.87 £1.55 Fair Value £2.61 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range £1.55 – £2.87 · fair‑value band £1.96 – £3.26 · the £2.62 price screens above the £2.61 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Henderson Far East Income Limited (HFEL) currently trades at £2.62, while our model-based Fair Value estimate is £2.61, implying the stock looks roughly 0.4% fairly valued today. The Quality Score stands at 68/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Henderson Far East Income Limited generated revenue of £144M at a net margin of 92.4%. It earns a return on equity of 30.2%. Net debt stands at £24.9M. The stock trades on a trailing P/E of 3.9. Fundamentals as of Jul 11, 2026

Our scenario range runs from £1.96 (bear case) to £3.26 (bull case); at £2.62, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at 0%, HFEL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income £1.60 £1.77 £2.25 76
Growth DCF £2.03 £2.99 £4.29 72
Gordon GGM £1.52 £2.73 £3.76 70
All 11 models by family
DCF Models
5Y P/E Exit £1.96 £3.13 £4.39 38
10Y P/E Exit £1.97 £2.94 £4.21 35
Earnings-Based
Graham-Dodd £1.40 £5.35 £7.25 54
Lynch FV £1.30 £1.86 £2.42 50
Dividend Discount
Gordon GGM £1.52 £2.73 £3.76 70
DDM Multi-Stage £1.52 £2.50 £2.92 61
Multiples
P/E Multiple £2.01 £2.68 £3.35 63
P/B Multiple £1.96 £2.61 £3.26 55
Asset-Based
NCAV (Graham) £0.9300 £1.25 £1.86 50
Growth DCF
Growth DCF £2.03 £2.99 £4.29 72
Economic Profit
Residual Income £1.60 £1.77 £2.25 76

Widest divergence: Growth DCF (£2.99) versus Asset-Based (£1.25). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 144M GBX
Revenue growth (YoY) +683%
Net margin 92.4%
Return on equity 30.2%
Free cash flow 42.3M GBX FY2025
P/E ratio 3.9
More key figures
Operating margin 97.6%
EPS (TTM) £0.7200
Dividend yield 6.9%
EPS growth (YoY) +938%
Net debt 24.9M GBX FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 63 · Market factors (momentum, volatility) 67

Profitability 46
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 82
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 61
Distance to the 52-week high (market factor)
Net Issuance 28
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Henderson Far East Income Limited is a closed ended balanced mutual fund launched and managed by Henderson Investment Funds Limited. The fund is managed by Henderson Global Investors Limited. It invests in the public equity and fixed income markets of Pacific, Australasia, Japan, and India.

Full company description

Henderson Far East Income Limited is a closed ended balanced mutual fund launched and managed by Henderson Investment Funds Limited. The fund is managed by Henderson Global Investors Limited. It invests in the public equity and fixed income markets of Pacific, Australasia, Japan, and India. The fund invests in stocks of companies operating across diversified sectors. Henderson Far East Income Ltd was formed on May 1, 1930 and is domiciled in Jersey, Channel Islands.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Henderson Far East Income Limited reported revenue of £53.5M in FY2025 versus £34.1M in FY2021, a compound +11.9%/yr. Reported net income was £45.1M in FY2025, compounding +11.0%/yr from FY2021.

Growth Quality 90/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£53.5M
Latest YoY
+22.2%
Avg. growth/yr (3Y)
+61.6%
Avg. growth/yr (18Y)
+2.3%
Revenue +11.9%/yr
FY21 £34.1M
FY22 £12.7M
FY23 −£51.3M
FY24 £43.8M
FY25 £53.5M
Net income +11.0%/yr
FY21 £29.7M
FY22 £8.0M
FY23 −£56.2M
FY24 £39.3M
FY25 £45.1M

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Cite: Fair Value Calculator (2026). "Henderson Far East Income Limited Fair Value". https://www.fairvalue-calculator.com/stock/HFEL

Peer Group

Asset Management · 973 stocks

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.

Quality Score 67 · Above median
Fair Value upside −0% · Below median
Return on equity (TTM) 30% · Top 25%
Return on assets 18% · Top 25%
Net margin (TTM) 92% · Top 25%
Operating margin (TTM) 98% · Top 25%
Revenue growth 683% · Top 25%
Dividend yield (TTM) 7.2% · Top 25%

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 3.7× · Cheaper than 75% of peers
P/B 1.90× · Pricier than 75% of peers
P/S (TTM) 5.38× · Pricier than median
P/FCF 18.3× · Pricier than median
EV/EBITDA 14.8× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 33 · sector 37
FUTURE 100 · sector 6
PAST 100 · sector 26
HEALTH 0 · sector 95
DIVIDEND 100 · sector 69

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Asset Management stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Fondul Proprietatea SA FP $0.0420 $0.0800 +90%
BlackRock, Inc BLK $1,136 $465.75 -59%
Blackstone Inc BX $124.56 $16.35 -87%
Investor AB INVEB kr 423.70 kr 847.40 +100%
Brookfield Corporation BN C$62.45 C$10.12 -84%
KKR & Co KKR $100.94 $44.88 -56%
AB Industrivärden INDUA kr 532.50 kr 1,065 +100%
Jio Financial Services Limited JIOFIN ₹242.98 ₹40.19 -83%
Hedef Holding HEDEF 267.25 TRY 320.98 TRY +20%
Bajaj Holdings BAJAJHLDNG ₹10,398 ₹9,202 -12%

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Frequently asked questions

Is Henderson Far East Income Limited (HFEL) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of £2.61 versus a price of £2.62, about −0% (fairly valued).
What is the fair value of HFEL?
Our model-based fair value for Henderson Far East Income Limited is £2.61 (as of Jul 11, 2026), built from audited fundamentals. The current price is £2.62.
What is the quality score of HFEL?
Henderson Far East Income Limited has a Quality Score of 68/100. 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 revenue of Henderson Far East Income Limited (HFEL)?
Henderson Far East Income Limited reported trailing-twelve-month revenue of about £144M (latest available figure, as of Jul 11, 2026).
What is the net profit margin of HFEL?
The net profit margin of Henderson Far East Income Limited is about 92.4%, meaning it keeps roughly 92.4% of revenue as net income. Based on the latest reported figures.
Does Henderson Far East Income Limited pay a dividend?
Henderson Far East Income Limited currently shows a dividend yield of about 6.85% relative to its recent price (as of Jul 11, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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