What is Federated Hermes, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Federated Hermes, Inc.'s reported free cash flow gives $69.00 per share. The share price was $57.82 on September 25, 2026, 16% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -0.5% | 10.0% | $42.45 | -27% |
| Base | 4.5% | 9.0% | $69.00 | +19% |
| Bull | 9.5% | 8.0% | $120.70 | +109% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $87.91 | $93.65 | $100.67 | $109.44 | $120.72 |
| 8.0% | $73.82 | $77.54 | $81.94 | $87.22 | $93.68 |
| 9.0% | $63.51 | $66.06 | $69.00 | $72.42 | $76.47 |
| 10.0% | $55.65 | $57.46 | $59.51 | $61.86 | $64.56 |
| 11.0% | $49.46 | $50.79 | $52.27 | $53.94 | $55.83 |
Where the presets come from
Base: years 1 to 5 grow at Federated Hermes, Inc.'s revenue growth rate over the last 5 fiscal years (4.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions