Federated Hermes (FRA:3KC) Effective Interest Rate on Debt %: 2.83% (As of Mar. 2026)

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FRA:3KC Federated Hermes Inc FRA:3KC
94 GF Score
Price €51.50
GF Value €44.32
! 6 Warning Signs
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What is Federated Hermes Effective Interest Rate on Debt %?

Federated Hermes FRA:3KC -0.96% 94 Effective Interest Rate on Debt % is 2.83% as of Mar. 2026. GuruFocus rates FRA:3KC with a GF Score™ of 94/100 and a GF Value™ of €44.32. The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Federated Hermes's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was €11 Mil. Federated Hermes's average total debt for the quarter that ended in Mar. 2026 was €390 Mil. Therefore, Federated Hermes's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 2.83%.


Federated Hermes  (FRA:3KC) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Federated Hermes Effective Interest Rate on Debt % Related Terms


Federated Hermes Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Federated Hermes's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Federated Hermes Effective Interest Rate on Debt % Chart

Federated Hermes Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.66 2.85 2.71 2.81 2.62

Federated Hermes Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.72 2.67 2.74 2.79 2.83

FRA:3KC vs DNP, CNS, MAIN: Effective Interest Rate on Debt % Comparison

For the Asset Management subindustry, Federated Hermes's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Federated Hermes Effective Interest Rate on Debt % vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Federated Hermes's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Federated Hermes's Effective Interest Rate on Debt % falls into.


FRA:3KC
94GF Score
Federated Hermes Inc FRA:3KC
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Federated Hermes Effective Interest Rate on Debt % Calculation

Federated Hermes's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -10.873/( (441.179+390.284)/ 2 )
=-1  *  -10.873/415.7315
=2.62 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=425.235 + 15.944
=441.179

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=373.078 + 17.206
=390.284

Federated Hermes's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -11.02/( (390.284+389.691)/ 2 )
=-1  *  -11.02/389.9875
=2.83 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=373.078 + 17.206
=390.284

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=373.353 + 16.338
=389.691

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 2.83% mean?
Federated Hermes (FRA:3KC) has a Effective Interest Rate on Debt % of 2.83% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Federated Hermes and its competitors.
Is Federated Hermes' Effective Interest Rate on Debt % too high?
Federated Hermes' current Effective Interest Rate on Debt % is 2.83%. Overall, Federated Hermes has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Effective Interest Rate on Debt % compare to DNP and CNS?
Federated Hermes' Effective Interest Rate on Debt % of 2.83% can be compared against companies in the Asset Management industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Asset Management company?
A good Effective Interest Rate on Debt % depends on the Asset Management industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Federated Hermes and its competitors. Federated Hermes's current Effective Interest Rate on Debt % is 2.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federated Hermes stock overvalued right now?
Federated Hermes (FRA:3KC) has a current Effective Interest Rate on Debt % of 2.83%. The stock's GF Value™ is €44.32, compared to a current price of €51.50 — trading 16.2% above its estimated fair value. The current Effective Interest Rate on Debt % is 2.83%. Federated Hermes' overall GF Score™ is 94/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current Effective Interest Rate on Debt % is 2.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Federated Hermes (FRA:3KC) Overvalued in 2026?

Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued. The current stock price of €51.50 is trading 16.2% above its estimated GF Value™ of €44.32.

Key valuation signals for FRA:3KC:

  • Effective Interest Rate on Debt %: 2.83%
  • GF Value™: €44.32 vs. price of €51.50 (16.2% above fair value)
  • GF Score™: 94/100 with 6 warning signs

No single metric tells the full story. See the FRA:3KC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Federated Hermes Business Description

Other Exchanges FHI:USA
Address 1001 Liberty Avenue, Pittsburgh, PA, USA, 15222-3779
Federated Hermes provides asset management services for institutional and individual investors. The firm had $902.6 billion in managed assets at the end of 2025, composed of equity (11%), multi-asset (less than 1%), fixed-income (11%), alternative (2%), and money market (76%) funds. The firm's cash management operations are expected to generate around 55% of Federated's revenue this year, compared with 27%, 10%, and 8%, respectively, for the equity, fixed-income, and alternatives/multi-asset/other operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (68% of AUM), institutional investors (25%), and international clients (7%).
94GF Score

Get the complete analysis for FRA:3KC

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€51.50
Price
€44.32
GF Value