Federated HermesFRA:3KC +0.42%84 PEG Ratio is 1.26 as of Jul. 03, 2026, which is 18% below its 10-year median of 1.54. GuruFocus rates FRA:3KC with a GF Score™ of 84/100 and a GF Value™ of €43.41 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 495 Asset Management companies, Federated Hermes ranks better than 58.59% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Federated Hermes's PEG Ratio or its related term are showing as below:
FRA:3KC'
s PEG Ratio Range Over the Past 10 Years
Min: 0.73 Med: 1.54 Max: 3.39
Current: 1.25
During the past 13 years, Federated Hermes's highest PEG Ratio was 3.39. The lowest was 0.73. And the median was 1.54.
FRA:3KC's PEG Ratio is ranked better than 58.59% of 495
companies
in the Asset Management industry
Industry Median: 1.72
vs FRA:3KC: 1.25
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Federated Hermes (FRA:3KC) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Federated Hermes PEG Ratio Related Terms
Federated Hermes PEG Ratio Historical Data
* Premium members only.
The historical data trend for Federated Hermes's PEG Ratio 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 PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Federated Hermes's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Federated Hermes (FRA:3KC) has a PEG Ratio of 1.26 as of Jul. 03, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Federated Hermes and its competitors. This is 18% below median its historical median of 1.54. Over the past decade, Federated Hermes' PEG Ratio has ranged from 0.73 to 3.39. According to the industry distribution chart, Federated Hermes ranks #205 out of 495 companies in the Asset Management industry, placing it in the top 41.4%.
Is Federated Hermes' PEG Ratio too high?
Federated Hermes' current PEG Ratio of 1.26 is 18% below median its 10-year median of 1.54. Over the past 10 years, this metric has ranged from a low of 0.73 to a high of 3.39. The Asset Management industry median PEG Ratio is 1.72. Federated Hermes' value of 1.26 is 26.7% below this industry median. Based on the distribution chart, Federated Hermes ranks #205 out of 495 companies in the Asset Management industry, which is above the industry midpoint. Overall, Federated Hermes has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' PEG Ratio compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #205 out of 495 companies for PEG Ratio. This puts Federated Hermes in the upper half of its industry. The industry median PEG Ratio is 1.72. Federated Hermes' value of 1.26 is 26.7% below this benchmark. Historically, Federated Hermes' own PEG Ratio has ranged from 0.73 to 3.39 over the past decade. While the company's 10-year median is 1.54 vs. the industry median of 1.72, 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 PEG Ratio for an Asset Management company?
The median PEG Ratio among Asset Management companies is 1.72, based on 495 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current PEG Ratio of 1.26 is 26.7% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median PEG Ratio is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current PEG Ratio is 1.26, which is 18% below median its own 10-year median of 1.54. 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 €43.41, compared to a current price of €48.00 — trading 10.6% above its estimated fair value. The current PEG Ratio is 1.26, which is 18% below median its 10-year median of 1.54 and 26.7% below the Asset Management industry median of 1.72. Federated Hermes' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current PEG Ratio is 1.26 as of Jul. 03, 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 €48.00 is trading 10.6% above its estimated GF Value™ of €43.41.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FRA:3KC:
PEG Ratio: 1.26 (18% below median its 10-year median of 1.54)
GF Value™: €43.41 vs. price of €48.00 (10.6% above fair value)
Industry Position: 26.7% below the Asset Management median (#205 of 495)
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%).
84GF Score
Get the complete analysis for FRA:3KC
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