Invesco Ltd. provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds. It also manages separate client focused equity, balanced, and fixed income portfolios. The company was founded in December 1935 and is based in Atlanta, Georgia.
IVZ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for IVZ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Invesco Ltd ranked in the 50th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 12%. The most interesting components of our discounted cash flow analysis for Invesco Ltd ended up being:
In the past 5.48 years, Invesco Ltd has a compound free cash flow growth rate of -0.05%; that's better than only 19.9% of cash flow producing equities in the Financial Services sector, where it is classified.
47% of the company's capital comes from equity, which is greater than only 20.6% of stocks in our cash flow based forecasting set.
Invesco Ltd's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 2.38% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as IVZ, try OCN, ICE, AMG, MKL, and RILY.