Federated HermesFHI -2.18%95 EV-to-FCF is 13.29 as of Jul. 01, 2026, which is 35% above its 10-year median of 9.86. GuruFocus rates FHI with a GF Score™ of 95/100 and a GF Value™ of $50.24 (Fairly Valued). The stock has 5 warning signs investors should review. Among 935 Asset Management companies, Federated Hermes ranks better than 52.51% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Federated Hermes's Enterprise Value is $4,056 Mil.
Federated Hermes's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $305 Mil. Therefore, Federated Hermes's EV-to-FCF for today is 13.29.
The historical rank and industry rank for Federated Hermes's EV-to-FCF or its related term are showing as below:
FHI'
s EV-to-FCF Range Over the Past 10 Years
Min: 4.47 Med: 9.86 Max: 22.56
Current: 13.29
During the past 13 years, the highest EV-to-FCF of Federated Hermes was 22.56. The lowest was 4.47. And the median was 9.86.
FHI's EV-to-FCF is ranked better than 52.51% of 935
companies
in the Asset Management industry
Industry Median: 14.46
vs FHI: 13.29
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Federated Hermes's PE Ratio (TTM) for today is calculated as:
Federated Hermes's share price for today is $55.22.
Federated Hermes's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.156.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Federated Hermes EV-to-FCF Related Terms
Federated Hermes EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Federated Hermes's EV-to-FCF 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.
For the Asset Management subindustry, Federated Hermes's EV-to-FCF, along with its competitors' market caps and EV-to-FCF 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 EV-to-FCF vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Federated Hermes's EV-to-FCF falls into.
Federated Hermes's current Enterprise Value is $4,056 Mil.
Federated Hermes's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $305 Mil.
* 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 (FHI) has a EV-to-FCF of 13.29 as of Jul. 01, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Federated Hermes and its competitors. This is 35% above median its historical median of 9.86. Over the past decade, Federated Hermes' EV-to-FCF has ranged from 4.47 to 22.56. According to the industry distribution chart, Federated Hermes ranks #444 out of 935 companies in the Asset Management industry, placing it in the top 47.5%.
Is Federated Hermes' EV-to-FCF too high?
Federated Hermes' current EV-to-FCF of 13.29 is 35% above median its 10-year median of 9.86. Over the past 10 years, this metric has ranged from a low of 4.47 to a high of 22.56. The Asset Management industry median EV-to-FCF is 14.46. Federated Hermes' value of 13.29 is 8.1% below this industry median. Based on the distribution chart, Federated Hermes ranks #444 out of 935 companies in the Asset Management industry, which is above the industry midpoint. Overall, Federated Hermes has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' EV-to-FCF compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #444 out of 935 companies for EV-to-FCF. This puts Federated Hermes in the upper half of its industry. The industry median EV-to-FCF is 14.46. Federated Hermes' value of 13.29 is 8.1% below this benchmark. Historically, Federated Hermes' own EV-to-FCF has ranged from 4.47 to 22.56 over the past decade. While the company's 10-year median is 9.86 vs. the industry median of 14.46, 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 EV-to-FCF for an Asset Management company?
The median EV-to-FCF among Asset Management companies is 14.46, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current EV-to-FCF of 13.29 is 8.1% 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 EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median EV-to-FCF is 14.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current EV-to-FCF is 13.29, which is 35% above median its own 10-year median of 9.86. 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 (FHI) is currently considered Fairly Valued. The stock's GF Value™ is $50.24, compared to a current price of $55.22 — trading 9.9% above its estimated fair value. The current EV-to-FCF is 13.29, which is 35% above median its 10-year median of 9.86 and 8.1% below the Asset Management industry median of 14.46. Federated Hermes' overall GF Score™ is 95/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Federated Hermes (FHI), the current EV-to-FCF is 13.29 as of Jul. 01, 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 (FHI) Overvalued in 2026?
Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued.
The current stock price of $55.22 is trading 9.9% above its estimated GF Value™ of $50.24.
GuruFocus considers Federated Hermes to be Fairly Valued.
Key valuation signals for FHI:
EV-to-FCF: 13.29 (35% above median its 10-year median of 9.86)
GF Value™: $50.24 vs. price of $55.22 (9.9% above fair value)
Industry Position: 8.1% below the Asset Management median (#444 of 935)
No single metric tells the full story. See the FHI 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%).
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