Latest Ratios: P/E Ratio 11.3x · EV/EBITDA 7.7x · ROE 33.4%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.4B | $3.9B | $3.3B | $2.8B | $3.1B | $3.5B | $2.8B | $3.2B | $2.6B | $3.5B | $2.8B |
| Enterprise Value | $4.3B | $3.8B | $3.2B | $2.9B | $3.2B | $3.6B | $2.7B | $3.1B | $2.6B | $3.4B | $2.9B |
| P/E Ratio → | 11.29 | 10.15 | 12.73 | 9.96 | 13.70 | 13.67 | 8.94 | 12.12 | 11.70 | 12.57 | 13.93 |
| P/S Ratio | 2.43 | 2.16 | 2.00 | 1.76 | 2.15 | 2.70 | 1.92 | 2.39 | 2.27 | 3.19 | 2.45 |
| P/B Ratio | 3.44 | 3.10 | 2.84 | 2.46 | 2.81 | 2.99 | 2.03 | 2.53 | 2.48 | 4.44 | 4.70 |
| P/FCF | 14.93 | 13.28 | 9.53 | 9.34 | 9.74 | 21.99 | 7.74 | 9.91 | 13.62 | 13.49 | 11.68 |
| P/OCF | 14.79 | 13.15 | 9.42 | 9.11 | 9.61 | 20.64 | 7.46 | 9.46 | 12.48 | 13.00 | 11.09 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.09 | 1.97 | 1.81 | 2.23 | 2.79 | 1.86 | 2.37 | 2.25 | 3.05 | 2.50 |
| EV / EBITDA | 7.67 | 6.79 | 8.40 | 7.03 | 8.85 | 9.16 | 6.02 | 8.36 | 7.35 | 9.57 | 8.29 |
| EV / EBIT | 7.99 | 6.75 | 8.17 | 7.27 | 8.77 | 9.91 | 6.45 | 9.03 | 7.73 | 9.86 | 8.53 |
| EV / FCF | — | 12.84 | 9.41 | 9.59 | 10.11 | 22.69 | 7.50 | 9.82 | 13.50 | 12.93 | 11.94 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.6% | 73.6% | 66.9% | 65.0% | 64.5% | 59.1% | 65.2% | 66.7% | 68.8% | 73.8% | 74.1% |
| Operating Margin | 29.5% | 29.5% | 22.1% | 24.1% | 23.3% | 28.2% | 28.9% | 26.2% | 29.1% | 31.0% | 29.4% |
| Net Profit Margin | 22.3% | 22.3% | 16.4% | 18.6% | 16.6% | 20.8% | 22.5% | 20.5% | 19.4% | 26.4% | 18.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 33.4% | 33.4% | 23.3% | 26.4% | 21.0% | 21.2% | 24.8% | 23.8% | 24.1% | 42.0% | 33.5% |
| ROA | 18.4% | 18.4% | 12.8% | 14.5% | 11.9% | 13.3% | 16.6% | 15.9% | 15.9% | 24.4% | 17.8% |
| ROIC | 24.1% | 24.1% | 16.8% | 18.3% | 16.4% | 17.7% | 20.5% | 19.7% | 23.2% | 29.7% | 31.4% |
| ROCE | 26.3% | 26.3% | 20.0% | 21.7% | 19.2% | 20.7% | 24.3% | 23.1% | 26.8% | 32.6% | 33.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.36 | 0.36 | 0.40 | 0.40 | 0.41 | 0.29 | 0.15 | 0.18 | 0.13 | 0.21 | 0.28 |
| Debt / EBITDA | 0.82 | 0.82 | 1.20 | 1.11 | 1.24 | 0.87 | 0.47 | 0.59 | 0.39 | 0.48 | 0.48 |
| Net Debt / Equity | — | -0.10 | -0.04 | 0.06 | 0.10 | 0.10 | -0.06 | -0.02 | -0.02 | -0.18 | 0.10 |
| Net Debt / EBITDA | -0.23 | -0.23 | -0.11 | 0.18 | 0.32 | 0.28 | -0.20 | -0.07 | -0.06 | -0.42 | 0.18 |
| Debt / FCF | — | -0.43 | -0.12 | 0.25 | 0.36 | 0.70 | -0.25 | -0.09 | -0.12 | -0.56 | 0.25 |
| Interest Coverage | 44.00 | 44.00 | — | 32.01 | 33.26 | 205.19 | — | 69.07 | 56.12 | 71.56 | 80.44 |
Net cash position: cash ($584M) exceeds total debt ($457M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 41.26 | 41.26 | 2.70 | 2.51 | 2.53 | 2.07 | 2.17 | 2.00 | 1.68 | 3.39 | 2.21 |
| Quick Ratio | 41.26 | 41.26 | 2.70 | 2.51 | 2.53 | 2.07 | 2.17 | 2.00 | 1.68 | 3.39 | 2.21 |
| Cash Ratio | 28.98 | 28.98 | 1.74 | 1.33 | 1.31 | 0.86 | 1.14 | 1.08 | 0.87 | 2.45 | 0.65 |
| Asset Turnover | — | 0.79 | 0.78 | 0.77 | 0.72 | 0.64 | 0.70 | 0.71 | 0.74 | 0.90 | 0.99 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 26.0% | 26.0% | 68.9% | 32.8% | 40.9% | 39.1% | 63.7% | 40.1% | 48.5% | 34.8% | 98.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.9% | 9.9% | 7.9% | 10.0% | 7.3% | 7.3% | 11.2% | 8.3% | 8.5% | 8.0% | 7.2% |
| FCF Yield | 6.7% | 7.5% | 10.5% | 10.7% | 10.3% | 4.5% | 12.9% | 10.1% | 7.3% | 7.4% | 8.6% |
| Buyback Yield | 6.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 8.4% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $75M | $79M | $84M | $86M | $94M | $96M | $97M | $97M | $97M | $99M |
Regulatory money market reform
Based on reported figures, FHI trades at a forward P/E of 11.26, which appears to incorporate a persistent liquidity discount relative to broader asset management peers, suggesting the market remains skeptical of the long-term growth potential of its money market-heavy AUM mix compared to equity-focused competitors.
The current valuation multiple suggests investors are pricing in limited organic growth, potentially overlooking the earnings leverage inherent in the firm's fee-waiver reversal cycle. While the 11.21x TTM P/E is modest, it warrants further investigation into whether this reflects a structural valuation ceiling or an opportunity for multiple expansion as the Hermes ESG platform gains greater institutional traction.
As reported in financial statements, FHI's ROIC has fluctuated between 1.9% and 6.1% over the last ten quarters, indicating that while the firm generates consistent returns, its capital efficiency is heavily influenced by the significant goodwill balance carried on the balance sheet from past strategic acquisitions.
The trend in ROIC suggests that the firm is struggling to compound returns on its invested capital at a rate that significantly exceeds its cost of capital. Investors should monitor whether the integration of Hermes-branded strategies can drive higher-margin AUM growth, which would be necessary to improve these return metrics over the long term.
According to recent SEC filings, FHI's asset turnover remains low at approximately 0.22, a characteristic typical of the asset management industry where the balance sheet is dominated by intangible assets rather than physical capital, limiting the utility of traditional turnover ratios for assessing operational efficiency.
The stability of the asset turnover ratio suggests that the firm's operational footprint is relatively fixed, with revenue growth primarily driven by AUM expansion rather than asset velocity. The lack of significant movement in this metric implies that management's focus remains on maintaining AUM stickiness within the bank trust channel rather than optimizing the balance sheet for higher turnover.
Based on an analysis of FHI's financial structure, the Price-to-Book ratio is the most commonly misapplied metric, as it fails to account for the firm's heavy reliance on intangible assets and goodwill, which obscures the true economic value of its institutional distribution network and brand equity.
Using P/B to evaluate FHI is misleading because the book value is significantly distorted by historical acquisition accounting, which does not reflect the current earning power of the firm's AUM. Analysts should instead prioritize metrics like EV/EBITDA or P/FCF, which better capture the cash-generative nature of the management fee business model.
Includes 30+ ratios · 29 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying FHI stock.
Federated Hermes, Inc.'s current P/E ratio is 11.3x. The historical average is 15.3x. This places it at the 18th percentile of its historical range.
Federated Hermes, Inc.'s current EV/EBITDA is 7.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
Federated Hermes, Inc.'s return on equity (ROE) is 33.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 54.1%.
Based on historical data, Federated Hermes, Inc. is trading at a P/E of 11.3x. This is at the 18th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Federated Hermes, Inc.'s current dividend yield is 2.41% with a payout ratio of 26.0%.
Federated Hermes, Inc. has 73.6% gross margin and 29.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Federated Hermes, Inc.'s Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.