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Federated HermesFRA:3KC -0.90%98 Equity-to-Asset is 0.54 as of Jun. 2026, which is 2% below its 10-year median of 0.55. GuruFocus rates FRA:3KC with a GF Score™ of 98/100 and a GF Value™ of €47.89 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,627 Asset Management companies, Federated Hermes ranks worse than 79.41% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Federated Hermes's Total Stockholders Equity for the quarter that ended in Jun. 2026 was €1,087 Mil. Federated Hermes's Total Assets for the quarter that ended in Jun. 2026 was €2,023 Mil.
Therefore, Federated Hermes's Equity to Asset Ratio for the quarter that ended in Jun. 2026 was 0.54.
The historical rank and industry rank for Federated Hermes's Equity-to-Asset or its related term are showing as below:
FRA:3KC'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.49 Med: 0.55 Max: 0.65
Current: 0.54
During the past 13 years, the highest Equity to Asset Ratio of Federated Hermes was 0.65. The lowest was 0.49. And the median was 0.55.
FRA:3KC's Equity-to-Asset is ranked worse than 79.41% of 1627
companies
in the Asset Management industry
Industry Median: 0.83
vs FRA:3KC: 0.54
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Federated Hermes Equity-to-Asset Related Terms
Federated Hermes Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Federated Hermes's Equity-to-Asset 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.
FRA:3KC vs HLNE, HASI, OTF: Equity-to-Asset Comparison
For the Asset Management subindustry, Federated Hermes's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Federated Hermes's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Federated Hermes's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (FRA:3KC) has a Equity-to-Asset of 0.54 as of Jun. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Federated Hermes and its competitors. This is near median its historical median of 0.55. Over the past decade, Federated Hermes' Equity-to-Asset has ranged from 0.49 to 0.65. According to the industry distribution chart, Federated Hermes ranks #1292 out of 1627 companies in the Asset Management industry, placing it in the top 79.4%.
Is Federated Hermes' Equity-to-Asset too high?
Federated Hermes' current Equity-to-Asset of 0.54 is near median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 0.65. The Asset Management industry median Equity-to-Asset is 0.83. Federated Hermes' value of 0.54 is 34.9% below this industry median. Based on the distribution chart, Federated Hermes ranks #1292 out of 1627 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Federated Hermes has a GF Score™ of 98/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Equity-to-Asset compare to HLNE and HASI?
According to the Asset Management industry distribution chart, Federated Hermes ranks #1292 out of 1627 companies for Equity-to-Asset. This places Federated Hermes in the lower half of its industry. The industry median Equity-to-Asset is 0.83. Federated Hermes' value of 0.54 is 34.9% below this benchmark. Historically, Federated Hermes' own Equity-to-Asset has ranged from 0.49 to 0.65 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 0.83, Federated Hermes has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Equity-to-Asset for an Asset Management company?
The median Equity-to-Asset among Asset Management companies is 0.83, based on 1,627 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current Equity-to-Asset of 0.54 is 34.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median Equity-to-Asset is 0.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current Equity-to-Asset is 0.54, which is near median its own 10-year median of 0.55. 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?
Based on GuruFocus' analysis, Federated Hermes (FRA:3KC) is currently considered Modestly Overvalued. The stock's GF Value™ is €47.89, compared to a current price of €55.00 — trading 14.8% above its estimated fair value. The current Equity-to-Asset is 0.54, which is near median its 10-year median of 0.55 and 34.9% below the Asset Management industry median of 0.83. Federated Hermes' overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current Equity-to-Asset is 0.54 as of Jun. 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 €55.00 is trading 14.8% above its estimated GF Value™ of €47.89.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FRA:3KC:
Equity-to-Asset: 0.54 (near median its 10-year median of 0.55)
GF Value™: €47.89 vs. price of €55.00 (14.8% above fair value)
Industry Position: 34.9% below the Asset Management median (#1292 of 1627)
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 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%).
98GF Score
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