0UAN.L
Invesco Ltd.
$27.19
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 23.1% below fair value
You pay
$27.19
Bear
$24.75
Fair
$35.35
Bull
$45.96
Bear
$24.75
-9.0%
ROTCE 4.0% → 0.30x TBV
Fair
$35.35
+30.0%
ROTCE -2.3% → 0.30x TBV
Bull
$45.96
+69.0%
ROTCE -2.6% → 0.30x TBV
Key Value Driver
ROTCE (-2.3%) vs. cost of equity (13.0%)
Implied Market Multiple
0.99x
Summary
With ROTCE of -2.3% vs. 13.0% cost of equity, fair P/TBV is 0.30x on $27.59 tangible book, implying $35.35 per share. DDM cross-check: $9.71.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Return on equity (-2.3%) is below the minimum investors require (13.0%). This means the bank is worth less than the net assets on its books.
Dividend-based valuation: $9.71 (73% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly