NYSE: FHI · Asset Management
Federated Hermes (FHI) fair value: undervalued or overvalued?
As of 31 Oct 2026, Faircurve's model values Federated Hermes (FHI) at $72.19 a share. The stock last closed at $62.16, which puts the model's fair value 16.1% above the price. On the model's bands that reads as Undervalued.
Revalued . Price is the close of 3 Nov 2026. Federated Hermes, Inc.
The report adds the live price, the chart against the range the options market prices, the next earnings date and the analysts' consensus. No account needed.
This week, in three parts
What happenedThe run of 31 Oct 2026 moved the fair value from $80.18 to $72.19 (-10.0%). The multiple the model anchors on moved, lowering the fair value: most of the move.
What the model makes of itThe price of $62.16 is 16.1% below it: Undervalued, on a high evidence grade.
What's nextNext report on 28 Jan 2027. Options prices imply a move of about 9% either way over the next month. The next weekly run is on Saturday 7 Nov 2026.
What price range does the model give FHI?
The calibrated range for FHI over 63 trading days is $56.59 to $69.77. It sits around the last close, and its width comes from the volatility that FHI's own options imply (32% a year), calibrated weekly against realised prices (n = 6,661 past valuations, refreshed 31 Oct 2026). Ranges built this way held the price 60% of the time at this horizon. The fair value is the model's opinion and rides beside the range. It is not the centre of it.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $60.64 to $85.19. In 85% of the simulations the fair value came out above the price the model ran on.
Faircurve Insights · 31 Oct 2026
Federated Hermes, Inc. (FHI) is a publicly listed holding company primarily engaged in asset management.
Faircurve's model put the fair value of Federated Hermes at $72.19 a share on 31 Oct 2026. The previous run, on 24 Oct 2026, gave $80.18; the fair value moved -10.0%. The model says the multiple it anchors on moved, lowering the fair value: most of the move. The calibrated range over 63 trading days is $56.59 to $69.77. Ranges built this way held the price 60% of the time at this horizon. The evidence grade is High. It looks at input completeness, the number and agreement of comparable companies, and the spread of outcomes. It does not say whether the fair value is right.
On quality, the model gives Federated Hermes 75 out of 100 against comparable companies. Balance sheet and stability both score 100: net debt / EBITDA is -0.39x against a peer median of 1.22x, and five-year EBITDA margin downside volatility is 1.4 pts against 3.7 pts. Profitability scores 80, with ROIC of 33.2% against a peer median of 15.8%. Capital discipline scores 75, with net buybacks at 6.0% of market value against 1.2%. The model compares the company with Hamilton Lane Incorporated (HLNE), Cohen & Steers, Inc. (CNS), Acadian Asset Management (AAMI), WisdomTree, Inc. (WT), Victory Capital Holdings, Inc. (VCTR) and Artisan Partners Asset Management Inc. (APAM).
Written from the figures on this page for the 31 Oct 2026 valuation and checked by rule before publishing: every number is one printed here, no forecast, no instruction. The price, the gap and the verdict are the page's own and change daily. Not a recommendation.
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When does FHI report earnings, and how has the stock reacted?
Federated Hermes's next earnings report is scheduled for 28 Jan 2027. Companies can move their dates.
On 4 Nov 2026, FHI's 30 day implied volatility worked out to a move of about 9.1% over one month, in either direction. That is a size, not a direction.
On 4 Nov 2026 FHI moved 5.7% in one session, against the 2.0% a day that options had priced: 2.9 times the implied size.
Around its last 8 reports: what the options market priced, and what followed
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across FHI's last 8 reports, ignoring direction, was 1.3%.
What the options market has priced for a month's move in FHI
How does FHI score on business quality?
Federated Hermes's overall quality score is 75 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 80 | 33.2%ROIC | 15.8% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 54 | 0.96xFCF / net income | 0.72x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analysts' rating changes. | 63 | 10.3%Revenue growth, trailing | 12.6% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 75 | 6.0%Net buybacks / market value | 1.2% |
| Balance sheetNet debt to EBITDA and interest coverage. | 100 | -0.39xNet debt / EBITDA | 1.22x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 100 | 1.4 ptsEBITDA margin downside volatility, 5y | 3.7 pts |
How does FHI compare with similar companies?
The companies in asset management closest to Federated Hermes in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| HLNE Hamilton Lane Incorporated | $88.63 | $117.74 | +32.8% | Undervalued |
| HASI HA Sustainable Infrastructure Capital, Inc. | $38.39 | $37.11 | -3.3% | Low evidence grade |
| CNS Cohen & Steers, Inc. | $73.10 | $68.11 | -6.8% | Fairly valued |
| STEP StepStone Group Inc. | $44.38 | $38.68 | -12.8% | Low evidence grade |
| AAMI Acadian Asset Management | $87.86 | $104.46 | +18.9% | Undervalued |
| WT WisdomTree, Inc. | $19.74 | $17.55 | -11.1% | Fairly valued |
| VCTR Victory Capital Holdings, Inc. | $115.75 | $134.30 | +16.0% | Undervalued |
| APAM Artisan Partners Asset Management Inc. | $38.65 | $44.10 | +14.1% | Fairly valued |
What the comparable companies' multiples alone would give for FHI, the peer-implied price, is $141.74 a share on this run. The fair value weighs that against the company's own multiple.
Federated Hermes at a glance
Federated Hermes, Inc. (FHI) is a publicly listed holding company primarily engaged in asset management. Through its extensive network of subsidiaries, the firm delivers specialized financial services to a wide array of clients.
- Market value
- $4.4B
- Sector
- Financial Services
- Industry
- Asset Management
- Revenue expected, next twelve months
- $2.1B
- Consensus revenue growth, next fiscal year
- +11.0%
- Analysts with estimates
- 5
- Beta to the US market
- 0.47
- First valued by Faircurve
- 11 Jul 2026
At the close of 3 Nov 2026, 52.1% of the 1,081 graded US stocks the model covers traded below the model's fair value. FHI was among them.
How the fair value is worked out: the model prices Federated Hermes on the value of the whole business, debt included, against the operating profit analysts expect next year (forward EV/EBITDA), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 24 Oct 2026 the model's fair value for FHI was $80.18. As of 31 Oct 2026 it is $72.19, a change of -10.0%. The multiple the model anchors on moved, lowering the fair value: most of the move. The model revalues every stock it covers each week, and again after an earnings report.
Questions about Federated Hermes's valuation
Is Federated Hermes stock undervalued or overvalued?
On Faircurve's model, FHI reads as Undervalued as of 31 Oct 2026. The model's fair value is $72.19 a share against a last close of $62.16, a gap of +16.1%.
What is FHI's fair value?
$72.19 a share as of 31 Oct 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $60.64 to $85.19.
What price range does the model give FHI?
$56.59 to $69.77 over 63 trading days. Ranges built this way held the price 60% of the time across 6,661 past valuations, refreshed 31 Oct 2026.
When does Federated Hermes report earnings next?
The next report is scheduled for 28 Jan 2027. Companies can move their dates.
How much has FHI moved on past earnings reports?
Across its last 8 reports the median two session move was 1.3%, ignoring direction. The largest was -4.0% around the report of 30 Apr 2026.
How confident is the model in this valuation?
The model's evidence grade for FHI is high. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.
The model's own ideas on FHI
The model holds no idea open on FHI today. Signed-in readers see the rule each idea runs on, the floor and the exit level the model set and its time limit, and the model's closed ideas on FHI with their outcomes. A free account is enough.