Federated Hermes (FRA:3KC) Margin of Safety % (DCF Dividends Based): -13.50% (As of Jul. 05, 2026)


FRA:3KC Federated Hermes Inc FRA:3KC
85 GF Score
Price €49.00
GF Value €43.53
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Federated Hermes Margin of Safety % (DCF Dividends Based)?

Federated Hermes FRA:3KC +2.08% 85 Margin of Safety % (DCF Dividends Based) is -13.50% as of Jul. 05, 2026. GuruFocus rates FRA:3KC with a GF Score™ of 85/100 and a GF Value™ of €43.53 (Modestly Overvalued). The stock has 6 warning signs investors should review.

Margin of Safety % (DCF Dividends Based) = (Intrinsic Value: DCF (Dividends Based) - Current Price) / Intrinsic Value: DCF (Dividends Based).

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history with more than 5 years. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, the data will not be stored into our database.

As of today (2026-07-05), Federated Hermes's Predictability Rank is 5-Stars. Federated Hermes's intrinsic value calculated from the Discounted Dividend model is €61.08 and current share price is €49.00. Consequently,

Federated Hermes's Margin of Safety % (DCF Dividends Based) using Discounted Dividend model is -13.50%.

FRA:3KC vs DNP, CNS, MAIN: Margin of Safety % (DCF Dividends Based) Comparison

For the Asset Management subindustry, Federated Hermes's Margin of Safety % (DCF Dividends Based), along with its competitors' market caps and Margin of Safety % (DCF Dividends Based) 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 Margin of Safety % (DCF Dividends Based) vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Federated Hermes's Margin of Safety % (DCF Dividends Based) distribution charts can be found below:

* The bar in red indicates where Federated Hermes's Margin of Safety % (DCF Dividends Based) falls into.


FRA:3KC
85GF Score
Federated Hermes Inc FRA:3KC
Margin of Safety % (DCF Dividends Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Federated Hermes Margin of Safety % (DCF Dividends Based) Calculation

Federated Hermes's Margin of Safety % (DCF Dividends Based) for today is calculated as

Margin of Safety % (DCF Dividends Based)=(Intrinsic Value: DCF (Dividends Based)-Current Price)/Intrinsic Value: DCF (Dividends Based)
=(43.17-49.00)/43.17
=-13.50 %

* 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.

The intrinsic value is calculated from the Discounted Dividend model with default parameters.

What does a Margin of Safety % (DCF Dividends Based) of -13.50% mean?
Federated Hermes (FRA:3KC) has a Margin of Safety % (DCF Dividends Based) of -13.50% as of Jul. 05, 2026. Margin of Safety % (DCF Dividends Based) is the percent difference between the current price and the intrinsic DCF Dividends price. View historical data on Federated Hermes.
Is Federated Hermes' Margin of Safety % (DCF Dividends Based) too high?
Federated Hermes' current Margin of Safety % (DCF Dividends Based) is -13.50%. Overall, Federated Hermes has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Margin of Safety % (DCF Dividends Based) compare to DNP and CNS?
Federated Hermes' Margin of Safety % (DCF Dividends Based) of -13.50% 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 Margin of Safety % (DCF Dividends Based) for an Asset Management company?
A good Margin of Safety % (DCF Dividends Based) depends on the Asset Management industry context. However, Margin of Safety % (DCF Dividends Based) 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 Margin of Safety % (DCF Dividends Based) mean?
A high Margin of Safety % (DCF Dividends Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Dividends Based) is the percent difference between the current price and the intrinsic DCF Dividends price. View historical data on Federated Hermes. Federated Hermes's current Margin of Safety % (DCF Dividends Based) is -13.50%. 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 €43.53, compared to a current price of €49.00 — trading 12.6% above its estimated fair value. The current Margin of Safety % (DCF Dividends Based) is -13.50%. Federated Hermes' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Dividends Based) calculated?
Margin of Safety % (DCF Dividends Based) is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current Margin of Safety % (DCF Dividends Based) is -13.50% as of Jul. 05, 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 €49.00 is trading 12.6% above its estimated GF Value™ of €43.53. GuruFocus considers Federated Hermes to be Modestly Overvalued.

Key valuation signals for FRA:3KC:

  • Margin of Safety % (DCF Dividends Based): -13.50%
  • GF Value™: €43.53 vs. price of €49.00 (12.6% above fair value)
  • GF Score™: 85/100 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%).
85GF Score

Get the complete analysis for FRA:3KC

Margin of Safety % (DCF Dividends Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€49.00
Price
€43.53
GF Value