Question 1

What is Federated Hermes, Inc.'s WACC?

Accepted Answer

Federated Hermes, Inc. (FHI) has a Weighted Average Cost of Capital (WACC) of 7.73%. This is calculated using a Cost of Equity of 8.12% (via CAPM with a beta of 0.74) and a pre-tax Cost of Debt of 3.66%, with an equity weight of 92.68% in the capital structure.

Question 2

Is Federated Hermes, Inc.'s WACC high or low?

Accepted Answer

Federated Hermes, Inc.'s WACC of 7.73% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Federated Hermes, Inc.'s WACC calculated?

Accepted Answer

Federated Hermes, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.12% is derived from the CAPM model using a beta of 0.74. The pre-tax Cost of Debt (Rd) is 3.66%. The capital structure is 92.68% equity and 7.32% debt.

Federated Hermes, Inc. (FHI) — WACC 分析

WACC 构成

解读

Federated Hermes, Inc.（FHI）WACC：7.73%

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Federated Hermes, Inc.（FHI） WACC 解读

FHI 公司分析

FHI DCF 估值

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