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 73th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 236.17%. The most interesting components of our discounted cash flow analysis for Invesco Ltd ended up being:
34% of the company's capital comes from equity, which is greater than only 18% of stocks in our cash flow based forecasting set.
Invesco Ltd's weighted average cost of capital (WACC) is 5%; for context, that number is higher than merely 1.28% of tickers in our DCF set.
As a business, Invesco Ltd experienced a tax rate of about 21% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than 84.08% of stocks generating free cash flow.
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 HCI, PGR, CPTA, HNNA, and NGHC.
At the onset of 2H, the operating and investing backdrop looks mixed as the second wave of virus contagion has already hit while several economic datapoints are coming in upbeat thanks to the unlocking of economies.