Intrinsic value of INVESCO - IVZ

Previous Close

$37.34

  Intrinsic Value

$52.40

stock screener

  Rating & Target

buy

+40%

Previous close

$37.34

 
Intrinsic value

$52.40

 
Up/down potential

+40%

 
Rating

buy

Our model is not good at valuating stocks of financial companies, such as IVZ.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of IVZ stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 15.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -7.92
  5.50
  5.45
  5.40
  5.36
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.17
  5.16
  5.14
  5.13
  5.11
  5.10
  5.09
  5.08
  5.08
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
Revenue, $m
  4,743
  5,004
  5,277
  5,562
  5,860
  6,172
  6,499
  6,841
  7,200
  7,575
  7,969
  8,381
  8,813
  9,266
  9,742
  10,240
  10,762
  11,310
  11,885
  12,489
  13,121
  13,785
  14,482
  15,213
  15,981
  16,786
  17,632
  18,519
  19,450
  20,428
  21,454
Variable operating expenses, $m
 
  2,688
  2,802
  2,920
  3,044
  3,173
  3,309
  3,451
  3,599
  3,755
  3,918
  3,476
  3,656
  3,844
  4,041
  4,247
  4,464
  4,691
  4,930
  5,180
  5,442
  5,718
  6,007
  6,310
  6,629
  6,963
  7,313
  7,681
  8,068
  8,473
  8,899
Fixed operating expenses, $m
 
  1,026
  1,052
  1,078
  1,105
  1,133
  1,161
  1,190
  1,220
  1,250
  1,281
  1,313
  1,346
  1,380
  1,414
  1,450
  1,486
  1,523
  1,561
  1,600
  1,640
  1,681
  1,723
  1,766
  1,811
  1,856
  1,902
  1,950
  1,998
  2,048
  2,100
Total operating expenses, $m
  3,558
  3,714
  3,854
  3,998
  4,149
  4,306
  4,470
  4,641
  4,819
  5,005
  5,199
  4,789
  5,002
  5,224
  5,455
  5,697
  5,950
  6,214
  6,491
  6,780
  7,082
  7,399
  7,730
  8,076
  8,440
  8,819
  9,215
  9,631
  10,066
  10,521
  10,999
Operating income, $m
  1,185
  1,289
  1,423
  1,564
  1,712
  1,867
  2,030
  2,201
  2,381
  2,570
  2,769
  3,591
  3,812
  4,043
  4,287
  4,543
  4,812
  5,096
  5,394
  5,708
  6,039
  6,386
  6,752
  7,137
  7,542
  7,968
  8,416
  8,888
  9,384
  9,906
  10,456
EBITDA, $m
  1,286
  1,966
  2,104
  2,248
  2,400
  2,559
  2,726
  2,901
  3,086
  3,280
  3,484
  3,699
  3,924
  4,162
  4,411
  4,674
  4,950
  5,241
  5,546
  5,868
  6,207
  6,563
  6,937
  7,332
  7,746
  8,183
  8,642
  9,125
  9,633
  10,168
  10,730
Interest expense (income), $m
  81
  228
  264
  301
  339
  379
  421
  466
  512
  560
  611
  664
  719
  777
  838
  903
  970
  1,040
  1,114
  1,191
  1,273
  1,358
  1,447
  1,541
  1,640
  1,743
  1,852
  1,966
  2,085
  2,211
  2,343
Earnings before tax, $m
  1,207
  1,062
  1,159
  1,263
  1,372
  1,487
  1,608
  1,735
  1,869
  2,010
  2,159
  2,928
  3,092
  3,266
  3,448
  3,640
  3,843
  4,056
  4,280
  4,517
  4,766
  5,028
  5,305
  5,595
  5,902
  6,225
  6,564
  6,922
  7,299
  7,695
  8,113
Tax expense, $m
  339
  287
  313
  341
  371
  402
  434
  469
  505
  543
  583
  791
  835
  882
  931
  983
  1,038
  1,095
  1,156
  1,220
  1,287
  1,358
  1,432
  1,511
  1,594
  1,681
  1,772
  1,869
  1,971
  2,078
  2,191
Net income, $m
  854
  775
  846
  922
  1,002
  1,086
  1,174
  1,267
  1,365
  1,468
  1,576
  2,137
  2,257
  2,384
  2,517
  2,657
  2,805
  2,961
  3,125
  3,297
  3,479
  3,671
  3,872
  4,085
  4,308
  4,544
  4,792
  5,053
  5,328
  5,618
  5,923

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,328
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  25,734
  25,793
  27,199
  28,669
  30,207
  31,816
  33,501
  35,265
  37,113
  39,048
  41,076
  43,202
  45,430
  47,765
  50,214
  52,782
  55,476
  58,301
  61,265
  64,374
  67,636
  71,059
  74,651
  78,420
  82,376
  86,528
  90,885
  95,459
  100,259
  105,298
  110,588
Adjusted assets (=assets-cash), $m
  24,406
  25,793
  27,199
  28,669
  30,207
  31,816
  33,501
  35,265
  37,113
  39,048
  41,076
  43,202
  45,430
  47,765
  50,214
  52,782
  55,476
  58,301
  61,265
  64,374
  67,636
  71,059
  74,651
  78,420
  82,376
  86,528
  90,885
  95,459
  100,259
  105,298
  110,588
Revenue / Adjusted assets
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
  0.194
Average production assets, $m
  1,823
  1,921
  2,026
  2,136
  2,250
  2,370
  2,496
  2,627
  2,765
  2,909
  3,060
  3,218
  3,384
  3,558
  3,741
  3,932
  4,133
  4,343
  4,564
  4,796
  5,039
  5,294
  5,561
  5,842
  6,137
  6,446
  6,771
  7,111
  7,469
  7,844
  8,238
Working capital, $m
  0
  -1,401
  -1,477
  -1,557
  -1,641
  -1,728
  -1,820
  -1,916
  -2,016
  -2,121
  -2,231
  -2,347
  -2,468
  -2,595
  -2,728
  -2,867
  -3,013
  -3,167
  -3,328
  -3,497
  -3,674
  -3,860
  -4,055
  -4,260
  -4,475
  -4,700
  -4,937
  -5,185
  -5,446
  -5,720
  -6,007
Total debt, $m
  6,506
  7,543
  8,594
  9,692
  10,841
  12,043
  13,301
  14,619
  15,999
  17,445
  18,960
  20,548
  22,212
  23,957
  25,786
  27,704
  29,716
  31,827
  34,041
  36,363
  38,800
  41,357
  44,040
  46,856
  49,811
  52,912
  56,167
  59,584
  63,170
  66,934
  70,885
Total liabilities, $m
  18,231
  19,267
  20,318
  21,416
  22,565
  23,767
  25,025
  26,343
  27,723
  29,169
  30,684
  32,272
  33,936
  35,681
  37,510
  39,428
  41,440
  43,551
  45,765
  48,087
  50,524
  53,081
  55,764
  58,580
  61,535
  64,636
  67,891
  71,308
  74,894
  78,658
  82,609
Total equity, $m
  7,504
  6,526
  6,881
  7,253
  7,642
  8,050
  8,476
  8,922
  9,390
  9,879
  10,392
  10,930
  11,494
  12,085
  12,704
  13,354
  14,035
  14,750
  15,500
  16,287
  17,112
  17,978
  18,887
  19,840
  20,841
  21,891
  22,994
  24,151
  25,366
  26,641
  27,979
Total liabilities and equity, $m
  25,735
  25,793
  27,199
  28,669
  30,207
  31,817
  33,501
  35,265
  37,113
  39,048
  41,076
  43,202
  45,430
  47,766
  50,214
  52,782
  55,475
  58,301
  61,265
  64,374
  67,636
  71,059
  74,651
  78,420
  82,376
  86,527
  90,885
  95,459
  100,260
  105,299
  110,588
Debt-to-equity ratio
  0.867
  1.160
  1.250
  1.340
  1.420
  1.500
  1.570
  1.640
  1.700
  1.770
  1.820
  1.880
  1.930
  1.980
  2.030
  2.070
  2.120
  2.160
  2.200
  2.230
  2.270
  2.300
  2.330
  2.360
  2.390
  2.420
  2.440
  2.470
  2.490
  2.510
  2.530
Adjusted equity ratio
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253
  0.253

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  854
  775
  846
  922
  1,002
  1,086
  1,174
  1,267
  1,365
  1,468
  1,576
  2,137
  2,257
  2,384
  2,517
  2,657
  2,805
  2,961
  3,125
  3,297
  3,479
  3,671
  3,872
  4,085
  4,308
  4,544
  4,792
  5,053
  5,328
  5,618
  5,923
Depreciation, amort., depletion, $m
  101
  677
  680
  684
  688
  692
  696
  700
  705
  710
  715
  107
  113
  119
  125
  131
  138
  145
  152
  160
  168
  176
  185
  195
  205
  215
  226
  237
  249
  261
  275
Funds from operations, $m
  -362
  1,452
  1,527
  1,606
  1,690
  1,778
  1,870
  1,967
  2,070
  2,177
  2,291
  2,245
  2,370
  2,503
  2,642
  2,788
  2,943
  3,106
  3,277
  3,457
  3,647
  3,847
  4,058
  4,279
  4,513
  4,759
  5,018
  5,290
  5,577
  5,879
  6,197
Change in working capital, $m
  -491
  -73
  -76
  -80
  -84
  -87
  -92
  -96
  -100
  -105
  -110
  -115
  -121
  -127
  -133
  -140
  -146
  -153
  -161
  -169
  -177
  -186
  -195
  -205
  -215
  -226
  -237
  -248
  -261
  -274
  -287
Cash from operations, $m
  129
  1,525
  1,603
  1,686
  1,773
  1,865
  1,962
  2,063
  2,170
  2,283
  2,401
  2,360
  2,491
  2,629
  2,775
  2,928
  3,089
  3,259
  3,438
  3,626
  3,824
  4,033
  4,253
  4,484
  4,728
  4,984
  5,254
  5,539
  5,838
  6,153
  6,484
Maintenance CAPEX, $m
  0
  -61
  -64
  -68
  -71
  -75
  -79
  -83
  -88
  -92
  -97
  -102
  -107
  -113
  -119
  -125
  -131
  -138
  -145
  -152
  -160
  -168
  -176
  -185
  -195
  -205
  -215
  -226
  -237
  -249
  -261
New CAPEX, $m
  -148
  -99
  -105
  -110
  -115
  -120
  -126
  -131
  -138
  -144
  -151
  -158
  -166
  -174
  -182
  -191
  -201
  -210
  -221
  -232
  -243
  -255
  -268
  -281
  -295
  -309
  -325
  -341
  -358
  -375
  -394
Cash from investing activities, $m
  -991
  -160
  -169
  -178
  -186
  -195
  -205
  -214
  -226
  -236
  -248
  -260
  -273
  -287
  -301
  -316
  -332
  -348
  -366
  -384
  -403
  -423
  -444
  -466
  -490
  -514
  -540
  -567
  -595
  -624
  -655
Free cash flow, $m
  -862
  1,365
  1,434
  1,509
  1,588
  1,670
  1,757
  1,849
  1,945
  2,046
  2,153
  2,100
  2,218
  2,343
  2,474
  2,612
  2,758
  2,911
  3,072
  3,242
  3,421
  3,610
  3,809
  4,018
  4,238
  4,470
  4,715
  4,972
  5,243
  5,529
  5,829
Issuance/(repayment) of debt, $m
  29
  1,037
  1,050
  1,098
  1,149
  1,202
  1,259
  1,318
  1,380
  1,446
  1,515
  1,588
  1,664
  1,745
  1,829
  1,918
  2,012
  2,110
  2,214
  2,323
  2,437
  2,557
  2,683
  2,816
  2,955
  3,101
  3,255
  3,416
  3,586
  3,764
  3,951
Issuance/(repurchase) of shares, $m
  -535
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  930
  1,037
  1,050
  1,098
  1,149
  1,202
  1,259
  1,318
  1,380
  1,446
  1,515
  1,588
  1,664
  1,745
  1,829
  1,918
  2,012
  2,110
  2,214
  2,323
  2,437
  2,557
  2,683
  2,816
  2,955
  3,101
  3,255
  3,416
  3,586
  3,764
  3,951
Total cash flow (excl. dividends), $m
  -63
  2,403
  2,484
  2,607
  2,736
  2,872
  3,016
  3,166
  3,325
  3,492
  3,668
  3,687
  3,882
  4,087
  4,303
  4,530
  4,770
  5,021
  5,286
  5,565
  5,858
  6,167
  6,492
  6,834
  7,193
  7,572
  7,970
  8,389
  8,829
  9,293
  9,780
Retained Cash Flow (-), $m
  381
  -350
  -356
  -372
  -389
  -407
  -426
  -446
  -467
  -490
  -513
  -538
  -564
  -591
  -620
  -650
  -681
  -715
  -750
  -787
  -825
  -866
  -909
  -954
  -1,001
  -1,050
  -1,102
  -1,157
  -1,215
  -1,275
  -1,338
Prev. year cash balance distribution, $m
 
  1,328
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,381
  2,129
  2,235
  2,347
  2,465
  2,589
  2,720
  2,858
  3,002
  3,155
  3,150
  3,319
  3,496
  3,684
  3,881
  4,088
  4,306
  4,536
  4,778
  5,033
  5,301
  5,583
  5,880
  6,193
  6,521
  6,867
  7,232
  7,615
  8,018
  8,442
Discount rate, %
 
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.18
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.20
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.37
  29.79
  31.28
PV of cash for distribution, $m
 
  3,142
  1,826
  1,756
  1,675
  1,585
  1,486
  1,379
  1,268
  1,152
  1,035
  872
  766
  663
  565
  474
  391
  317
  252
  196
  150
  112
  82
  58
  40
  27
  18
  11
  7
  4
  2
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Invesco Ltd. (Invesco) is an independent investment management company. The Company provides a range of investment capabilities and outcomes, which are delivered through a set of investment vehicles, to help clients achieve their investment objectives. It has a presence in the retail and institutional markets within the investment management industry in North America; Europe, Middle East and Africa (EMEA), and Asia-Pacific. Its Jemstep solution provides wealth management home offices and their advisors with a suite of technology solutions that are customizable and are integrated into existing systems. The solution offers advisors an open architecture platform that includes Invesco's fundamental and factor-based investment strategies. It offers retail products within various asset classes. It offers a suite of domestic and global strategies, including traditional and quantitative equities, fixed income and absolute return strategies.

FINANCIAL RATIOS  of  INVESCO (IVZ)

Valuation Ratios
P/E Ratio 17.7
Price to Sales 3.2
Price to Book 2
Price to Tangible Book
Price to Cash Flow 116.9
Price to Free Cash Flow -793.7
Growth Rates
Sales Growth Rate -7.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 18.4%
Cap. Spend. - 3 Yr. Gr. Rate 11%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 86.7%
Total Debt to Equity 86.7%
Interest Coverage 16
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 4.4%
Return On Total Capital 5.8%
Ret/ On T. Cap. - 3 Yr. Avg. 6.3%
Return On Equity 11.1%
Return On Equity - 3 Yr. Avg. 11.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 70.3%
Gross Margin - 3 Yr. Avg. 69.4%
EBITDA Margin 29.3%
EBITDA Margin - 3 Yr. Avg. 29.6%
Operating Margin 25%
Oper. Margin - 3 Yr. Avg. 25.5%
Pre-Tax Margin 25.4%
Pre-Tax Margin - 3 Yr. Avg. 26.3%
Net Profit Margin 18%
Net Profit Margin - 3 Yr. Avg. 18.6%
Effective Tax Rate 28.1%
Eff/ Tax Rate - 3 Yr. Avg. 28.4%
Payout Ratio 53.9%

IVZ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IVZ stock intrinsic value calculation we used $4743 million for the last fiscal year's total revenue generated by INVESCO. The default revenue input number comes from 2016 income statement of INVESCO. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our IVZ stock valuation model: a) initial revenue growth rate of 5.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.6%, whose default value for IVZ is calculated based on our internal credit rating of INVESCO, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of INVESCO.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of IVZ stock the variable cost ratio is equal to 54.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1001 million in the base year in the intrinsic value calculation for IVZ stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for INVESCO.

Corporate tax rate of 27% is the nominal tax rate for INVESCO. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the IVZ stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for IVZ are equal to 38.4%.

Life of production assets of 79 years is the average useful life of capital assets used in INVESCO operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for IVZ is equal to -28%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $7504 million for INVESCO - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 406.802 million for INVESCO is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of INVESCO at the current share price and the inputted number of shares is $15.2 billion.

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COMPANY NEWS

▶ 4 Cheap Stock Picks for the Impatient   [08:37AM  Barrons.com]
▶ Invesco Ltd. To Announce Third Quarter 2017 Results   [Oct-12-17 04:15PM  PR Newswire]
▶ Invesco's Strong September Means Better Earnings Ahead   [Oct-11-17 04:23PM  Barrons.com]
▶ [$$] Invesco moves boldly to grab more ETF power   [Oct-07-17 04:01AM  Financial Times]
▶ It's Hard to Scale the Peak of ETF Mountain   [Oct-05-17 08:00AM  Bloomberg]
▶ Invesco Ltd. to Make Equity Awards to New Employees   [Oct-04-17 05:00PM  PR Newswire]
▶ Invesco Closed-End Funds Declare Dividends   [Oct-02-17 12:00PM  PR Newswire]
▶ Company News For Oct 2, 2017   [10:15AM  Zacks]
▶ Invesco's Buy a Good One   [08:51AM  Morningstar]
▶ [$$] Invesco Buys Guggenheim's ETFs   [Sep-30-17 12:36AM  Barrons.com]
▶ Invesco to Close and Liquidate Four ETFs in December   [Sep-29-17 05:30PM  PR Newswire]
▶ Analysts Views on Invesco   [07:40AM  Market Realist]
▶ Invesco in Deal to Buy Guggenheim's ETFs   [05:45PM  Barrons.com]
▶ Could Invesco Revive Its Valuation?   [09:10AM  Market Realist]
▶ What Led to the Rise in Invescos Total Operating Expenses   [Sep-27-17 05:48PM  Market Realist]
▶ [$$] A Better Deal on a Good Bond Fund   [04:06PM  Barrons.com]
▶ Invesco Seeks To Expand ETF Universe With This $1 Billion Deal   [03:15PM  Investor's Business Daily]
▶ Expected Dividends of Alternative Asset Managers   [Sep-20-17 10:36AM  Market Realist]
▶ How Invescos Dividend Yield Curve Has Evolved   [Sep-18-17 11:15AM  Market Realist]
▶ What's Next For This Top ETF Provider And Smart-Beta Pioneer?   [07:50AM  Investor's Business Daily]
▶ Have Investors Already Priced In Invesco Ltds (IVZ) Growth?   [Sep-08-17 10:32AM  Simply Wall St.]
▶ LPL Financial: Will They Stay or Will They Go   [Sep-06-17 01:36PM  Barrons.com]
▶ Invesco Closed-End Funds Declare Dividends   [Sep-01-17 12:00PM  PR Newswire]
▶ Houston-Area Fund Firms Soldier on Through Harvey   [Aug-31-17 06:00AM  Morningstar]
▶ Invesco: Whatever it Takes to Get Scale?   [Aug-25-17 11:32AM  Barrons.com]
▶ [$$] Invesco Has Right Mix at the Right Price   [12:22AM  The Wall Street Journal]
▶ [$$] Invesco Close to Deal for Guggenheim ETF Business   [12:22AM  The Wall Street Journal]
▶ Invesco Close to Deal for Guggenheim ETF Business   [Aug-23-17 06:07PM  The Wall Street Journal]
▶ [$$] Invesco Has Right Mix at the Right Price   [11:50AM  The Wall Street Journal]
▶ Are stocks overvalued?   [Aug-15-17 02:09PM  CNBC Videos]
▶ Invesco: Stay Positive, Net Flows Are Good   [Aug-10-17 09:58AM  Barrons.com]
Financial statements of IVZ
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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