Intrinsic value of INVESCO - IVZ

Previous Close

$24.48

  Intrinsic Value

$124.13

stock screener

  Rating & Target

str. buy

+407%

Previous close

$24.48

 
Intrinsic value

$124.13

 
Up/down potential

+407%

 
Rating

str. buy

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

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 2017), $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 10.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.00
  8.60
  8.24
  7.92
  7.62
  7.36
  7.13
  6.91
  6.72
  6.55
  6.39
  6.26
  6.13
  6.02
  5.92
  5.82
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.39
  5.35
  5.32
  5.29
  5.26
  5.23
  5.21
  5.19
Revenue, $m
  5,624
  6,108
  6,611
  7,135
  7,679
  8,244
  8,832
  9,442
  10,077
  10,737
  11,423
  12,138
  12,882
  13,657
  14,465
  15,307
  16,186
  17,103
  18,061
  19,062
  20,107
  21,201
  22,344
  23,541
  24,793
  26,104
  27,477
  28,914
  30,420
  31,999
Variable operating expenses, $m
  4,156
  4,444
  4,743
  5,053
  5,377
  5,712
  6,061
  6,424
  6,801
  7,193
  6,786
  7,211
  7,653
  8,113
  8,593
  9,094
  9,616
  10,161
  10,730
  11,324
  11,945
  12,595
  13,274
  13,985
  14,729
  15,508
  16,323
  17,177
  18,072
  19,010
Fixed operating expenses, $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
Total operating expenses, $m
  4,156
  4,444
  4,743
  5,053
  5,377
  5,712
  6,061
  6,424
  6,801
  7,193
  6,786
  7,211
  7,653
  8,113
  8,593
  9,094
  9,616
  10,161
  10,730
  11,324
  11,945
  12,595
  13,274
  13,985
  14,729
  15,508
  16,323
  17,177
  18,072
  19,010
Operating income, $m
  1,468
  1,665
  1,869
  2,081
  2,302
  2,532
  2,770
  3,018
  3,276
  3,543
  4,637
  4,927
  5,229
  5,544
  5,872
  6,214
  6,570
  6,943
  7,331
  7,738
  8,162
  8,606
  9,070
  9,556
  10,064
  10,596
  11,153
  11,737
  12,348
  12,989
EBITDA, $m
  3,190
  3,464
  3,750
  4,046
  4,355
  4,675
  5,009
  5,355
  5,715
  6,089
  6,478
  6,884
  7,306
  7,745
  8,203
  8,681
  9,179
  9,700
  10,243
  10,810
  11,403
  12,024
  12,672
  13,351
  14,061
  14,804
  15,583
  16,398
  17,252
  18,147
Interest expense (income), $m
  81
  371
  482
  598
  719
  844
  975
  1,111
  1,252
  1,399
  1,551
  1,710
  1,874
  2,046
  2,225
  2,411
  2,605
  2,807
  3,018
  3,239
  3,469
  3,709
  3,960
  4,223
  4,498
  4,785
  5,086
  5,400
  5,730
  6,075
  6,437
Earnings before tax, $m
  1,097
  1,183
  1,271
  1,363
  1,458
  1,557
  1,659
  1,766
  1,877
  1,992
  2,927
  3,053
  3,183
  3,319
  3,461
  3,609
  3,763
  3,924
  4,093
  4,269
  4,453
  4,646
  4,847
  5,058
  5,279
  5,511
  5,753
  6,007
  6,273
  6,552
Tax expense, $m
  296
  319
  343
  368
  394
  420
  448
  477
  507
  538
  790
  824
  859
  896
  934
  974
  1,016
  1,060
  1,105
  1,153
  1,202
  1,254
  1,309
  1,366
  1,425
  1,488
  1,553
  1,622
  1,694
  1,769
Net income, $m
  801
  864
  928
  995
  1,064
  1,136
  1,211
  1,289
  1,370
  1,454
  2,137
  2,228
  2,324
  2,423
  2,526
  2,634
  2,747
  2,865
  2,988
  3,116
  3,251
  3,391
  3,539
  3,693
  3,854
  4,023
  4,200
  4,385
  4,579
  4,783

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  34,506
  37,473
  40,561
  43,772
  47,109
  50,577
  54,181
  57,927
  61,820
  65,869
  70,082
  74,465
  79,030
  83,785
  88,741
  93,909
  99,300
  104,928
  110,804
  116,943
  123,359
  130,067
  137,082
  144,422
  152,104
  160,146
  168,568
  177,388
  186,629
  196,312
Adjusted assets (=assets-cash), $m
  34,506
  37,473
  40,561
  43,772
  47,109
  50,577
  54,181
  57,927
  61,820
  65,869
  70,082
  74,465
  79,030
  83,785
  88,741
  93,909
  99,300
  104,928
  110,804
  116,943
  123,359
  130,067
  137,082
  144,422
  152,104
  160,146
  168,568
  177,388
  186,629
  196,312
Revenue / Adjusted assets
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
Average production assets, $m
  9,067
  9,846
  10,658
  11,501
  12,378
  13,289
  14,236
  15,221
  16,244
  17,308
  18,414
  19,566
  20,766
  22,015
  23,317
  24,675
  26,092
  27,570
  29,114
  30,727
  32,413
  34,176
  36,019
  37,948
  39,966
  42,079
  44,292
  46,610
  49,038
  51,582
Working capital, $m
  -15,394
  -16,718
  -18,095
  -19,528
  -21,017
  -22,564
  -24,172
  -25,843
  -27,580
  -29,386
  -31,266
  -33,221
  -35,258
  -37,379
  -39,590
  -41,896
  -44,301
  -46,811
  -49,433
  -52,172
  -55,034
  -58,027
  -61,157
  -64,431
  -67,858
  -71,446
  -75,203
  -79,138
  -83,261
  -87,581
Total debt, $m
  8,919
  11,071
  13,309
  15,637
  18,057
  20,571
  23,184
  25,900
  28,723
  31,658
  34,712
  37,890
  41,199
  44,647
  48,240
  51,987
  55,895
  59,975
  64,236
  68,686
  73,338
  78,201
  83,287
  88,609
  94,178
  100,009
  106,114
  112,509
  119,209
  126,229
Total liabilities, $m
  25,017
  27,168
  29,407
  31,734
  34,154
  36,668
  39,281
  41,997
  44,820
  47,755
  50,809
  53,987
  57,297
  60,744
  64,337
  68,084
  71,993
  76,073
  80,333
  84,784
  89,435
  94,298
  99,385
  104,706
  110,276
  116,106
  122,211
  128,606
  135,306
  142,326
Total equity, $m
  9,489
  10,305
  11,154
  12,037
  12,955
  13,909
  14,900
  15,930
  17,001
  18,114
  19,272
  20,478
  21,733
  23,041
  24,404
  25,825
  27,308
  28,855
  30,471
  32,159
  33,924
  35,768
  37,698
  39,716
  41,829
  44,040
  46,356
  48,782
  51,323
  53,986
Total liabilities and equity, $m
  34,506
  37,473
  40,561
  43,771
  47,109
  50,577
  54,181
  57,927
  61,821
  65,869
  70,081
  74,465
  79,030
  83,785
  88,741
  93,909
  99,301
  104,928
  110,804
  116,943
  123,359
  130,066
  137,083
  144,422
  152,105
  160,146
  168,567
  177,388
  186,629
  196,312
Debt-to-equity ratio
  0.940
  1.070
  1.190
  1.300
  1.390
  1.480
  1.560
  1.630
  1.690
  1.750
  1.800
  1.850
  1.900
  1.940
  1.980
  2.010
  2.050
  2.080
  2.110
  2.140
  2.160
  2.190
  2.210
  2.230
  2.250
  2.270
  2.290
  2.310
  2.320
  2.340
Adjusted equity ratio
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275
  0.275

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  801
  864
  928
  995
  1,064
  1,136
  1,211
  1,289
  1,370
  1,454
  2,137
  2,228
  2,324
  2,423
  2,526
  2,634
  2,747
  2,865
  2,988
  3,116
  3,251
  3,391
  3,539
  3,693
  3,854
  4,023
  4,200
  4,385
  4,579
  4,783
Depreciation, amort., depletion, $m
  1,722
  1,800
  1,881
  1,965
  2,053
  2,144
  2,239
  2,337
  2,439
  2,546
  1,841
  1,957
  2,077
  2,201
  2,332
  2,468
  2,609
  2,757
  2,911
  3,073
  3,241
  3,418
  3,602
  3,795
  3,997
  4,208
  4,429
  4,661
  4,904
  5,158
Funds from operations, $m
  2,522
  2,663
  2,809
  2,960
  3,117
  3,280
  3,450
  3,626
  3,809
  4,000
  3,978
  4,185
  4,400
  4,624
  4,858
  5,102
  5,356
  5,622
  5,899
  6,189
  6,492
  6,809
  7,140
  7,487
  7,850
  8,231
  8,629
  9,046
  9,483
  9,941
Change in working capital, $m
  -1,271
  -1,324
  -1,378
  -1,432
  -1,489
  -1,547
  -1,608
  -1,671
  -1,737
  -1,806
  -1,879
  -1,956
  -2,036
  -2,121
  -2,211
  -2,306
  -2,405
  -2,511
  -2,622
  -2,739
  -2,862
  -2,993
  -3,130
  -3,275
  -3,427
  -3,588
  -3,757
  -3,935
  -4,123
  -4,320
Cash from operations, $m
  3,793
  3,987
  4,186
  4,392
  4,606
  4,827
  5,058
  5,297
  5,547
  5,807
  5,858
  6,141
  6,437
  6,746
  7,069
  7,407
  7,761
  8,132
  8,521
  8,928
  9,354
  9,802
  10,270
  10,762
  11,278
  11,818
  12,386
  12,981
  13,606
  14,261
Maintenance CAPEX, $m
  -832
  -907
  -985
  -1,066
  -1,150
  -1,238
  -1,329
  -1,424
  -1,522
  -1,624
  -1,731
  -1,841
  -1,957
  -2,077
  -2,201
  -2,332
  -2,468
  -2,609
  -2,757
  -2,911
  -3,073
  -3,241
  -3,418
  -3,602
  -3,795
  -3,997
  -4,208
  -4,429
  -4,661
  -4,904
New CAPEX, $m
  -750
  -780
  -811
  -844
  -877
  -911
  -947
  -984
  -1,023
  -1,064
  -1,107
  -1,152
  -1,199
  -1,249
  -1,302
  -1,358
  -1,417
  -1,479
  -1,544
  -1,613
  -1,686
  -1,763
  -1,843
  -1,929
  -2,018
  -2,113
  -2,213
  -2,318
  -2,428
  -2,544
Cash from investing activities, $m
  -1,582
  -1,687
  -1,796
  -1,910
  -2,027
  -2,149
  -2,276
  -2,408
  -2,545
  -2,688
  -2,838
  -2,993
  -3,156
  -3,326
  -3,503
  -3,690
  -3,885
  -4,088
  -4,301
  -4,524
  -4,759
  -5,004
  -5,261
  -5,531
  -5,813
  -6,110
  -6,421
  -6,747
  -7,089
  -7,448
Free cash flow, $m
  2,212
  2,301
  2,390
  2,483
  2,579
  2,678
  2,782
  2,889
  3,001
  3,118
  3,020
  3,147
  3,281
  3,420
  3,565
  3,718
  3,877
  4,045
  4,220
  4,403
  4,596
  4,798
  5,009
  5,231
  5,464
  5,709
  5,965
  6,234
  6,517
  6,813
Issuance/(repayment) of debt, $m
  2,044
  2,151
  2,239
  2,328
  2,420
  2,514
  2,613
  2,716
  2,823
  2,936
  3,054
  3,178
  3,309
  3,447
  3,593
  3,747
  3,909
  4,080
  4,260
  4,451
  4,651
  4,863
  5,086
  5,322
  5,569
  5,830
  6,105
  6,395
  6,700
  7,020
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  2,044
  2,151
  2,239
  2,328
  2,420
  2,514
  2,613
  2,716
  2,823
  2,936
  3,054
  3,178
  3,309
  3,447
  3,593
  3,747
  3,909
  4,080
  4,260
  4,451
  4,651
  4,863
  5,086
  5,322
  5,569
  5,830
  6,105
  6,395
  6,700
  7,020
Total cash flow (excl. dividends), $m
  4,256
  4,452
  4,629
  4,811
  4,998
  5,193
  5,395
  5,605
  5,824
  6,054
  6,074
  6,326
  6,590
  6,867
  7,158
  7,464
  7,786
  8,124
  8,480
  8,854
  9,247
  9,661
  10,096
  10,553
  11,034
  11,539
  12,071
  12,629
  13,216
  13,833
Retained Cash Flow (-), $m
  -793
  -816
  -849
  -883
  -918
  -954
  -991
  -1,030
  -1,071
  -1,113
  -1,158
  -1,206
  -1,255
  -1,308
  -1,363
  -1,421
  -1,483
  -1,548
  -1,616
  -1,688
  -1,764
  -1,845
  -1,929
  -2,019
  -2,113
  -2,212
  -2,316
  -2,426
  -2,541
  -2,663
Prev. year cash balance distribution, $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 flow adjustment, $m
  175
  191
  208
  225
  243
  261
  280
  300
  321
  343
  365
  388
  413
  438
  464
  492
  520
  550
  582
  614
  648
  684
  721
  760
  800
  843
  888
  934
  983
  1,034
Cash available for distribution, $m
  3,463
  3,636
  3,780
  3,928
  4,080
  4,239
  4,403
  4,575
  4,754
  4,940
  4,916
  5,120
  5,335
  5,559
  5,795
  6,043
  6,304
  6,577
  6,864
  7,166
  7,483
  7,816
  8,166
  8,534
  8,921
  9,328
  9,755
  10,203
  10,675
  11,170
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  3,320
  3,329
  3,289
  3,234
  3,163
  3,076
  2,975
  2,859
  2,731
  2,590
  2,334
  2,185
  2,028
  1,866
  1,701
  1,536
  1,372
  1,211
  1,057
  911
  774
  649
  535
  435
  347
  272
  209
  158
  117
  84
Current shareholders' claim on cash, %
  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 11.6
Price to Sales 2.1
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 76.6
Price to Free Cash Flow -520.3
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 $5160 million for the last fiscal year's total revenue generated by INVESCO. The default revenue input number comes from 2017 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 9% 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 4.3%, 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 75.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 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 5.4% 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 3.4%.

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 161.2%.

Life of production assets of 10 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 -273.7%. 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 - $8696 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 407 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 $10.0 billion.

RELATED COMPANIES Price Int.Val. Rating
GROW U.S. Global In 1.55 0.40  str.sell
WETF WisdomTree Inv 8.09 6.50  sell

COMPANY NEWS

▶ The Shipping ETF That's Making Waves   [Aug-15-18 06:30PM  Bloomberg]
▶ [$$] New Bond ETFs Aim to Fix Old Problems   [Aug-08-18 02:07PM  Barrons.com]
▶ Update: Invesco lumped into Forbes' Wilbur Ross 'grifting' investigation   [Aug-07-18 11:26AM  American City Business Journals]
▶ Invesco Closed-End Funds Declare Dividends   [Aug-01-18 01:59PM  PR Newswire]
▶ 3 Great Ideas for Retirement Income   [Jul-28-18 08:00AM  TheStreet.com]
▶ Invesco Canada announces fund name changes   [Jul-27-18 01:05PM  CNW Group]
▶ Invesco's Big Fixed Income Factor ETF Splash   [Jul-26-18 12:46PM  Benzinga]
▶ Invesco: 2Q Earnings Snapshot   [07:20AM  Associated Press]
▶ Invesco Joins the Do-It-Yourself Indexing Trend   [Jul-25-18 02:22PM  Bloomberg]
▶ 6 Cheap Stocks That Can Pay Off Big   [01:30PM  Investopedia]
▶ Can Google Jump Start Momentum for FANG Stocks?   [08:58AM  Bloomberg Video]
▶ [$$] Money Managers Look Like Bargains   [07:24AM  The Wall Street Journal]
▶ Are Large-Cap India ETFs Good Bets for 2H?   [Jul-19-18 04:31PM  Zacks]
▶ U.S. Asset Managers: Go Big orGo Big   [Jul-13-18 10:46AM  Barrons.com]
▶ The ETF That Takes You for a Spin   [Jul-11-18 07:15PM  Bloomberg]
▶ [$$] Bid to unseat Stobart chairman fails in narrow vote   [Jul-07-18 03:43AM  Financial Times]
▶ [$$] Is Fixed Income Ready for Factors?   [01:12PM  Barrons.com]
▶ Where Value Stocks Are Working   [01:18PM  Benzinga]
▶ [$$] First Saudi Arabia ETF launches in Europe   [Jun-18-18 06:08AM  Financial Times]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.