IVZ - Invesco Ltd.
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$29.72
DETAILS
HIGH:
$34.50
LOW:
$26.00
MEDIAN:
$30.00
CONSENSUS:
$29.72
UPSIDE:
9.87%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
-2.3%
13.0%
Key Value Driver
ROTCE (-2.3%) vs. cost of equity (13.0%)
Implied Market Multiple
0.98x
Plain-Language Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $29.72 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $33.95 per share.
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: $9.70 (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