DCF Tool

IVZ

Invesco Ltd – Securities and Commodity Exchanges
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. Invesco managed US $1.35 trillion in assets on behalf of clients worldwide as of December 31, 2020.
Analysis Results
Intrinsic Value $487.81
Latest Price $18.38
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 22.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 4.11 3.9
2023 5.03 4.52
2024 6.15 5.24
2025 7.52 6.07
2026 9.19 7.03
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 269 billion. This corresponds to a present value of 195 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 26.8 billion. Adding in the terminal value gives a total present value of 222 billion.

There are presently 455.0 million outstanding shares, so the intrinsic value per share is 487.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 15,035,800,000
Current Cash 1,896,400,000
Current Liabilities 4,113,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,026,400,000
Change in NCWC 2,231,300,000
EBIT 1,874,600,000
Tax Provision 531,100,000
Depreciation and Amortization 205,300,000
Capital Expenditure -108,800,000
Unlevered Free Cash Flow 3,804,239,608
Current Assets 18,778,100,000
Current Cash 1,408,400,000
Current Liabilities 10,574,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,795,100,000
Change in NCWC -390,100,000
EBIT 1,386,400,000
Tax Provision 261,600,000
Depreciation and Amortization 203,500,000
Capital Expenditure -115,000,000
Unlevered Free Cash Flow 745,559,292
Current Assets 22,158,700,000
Current Cash 1,049,000,000
Current Liabilities 13,924,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,185,200,000
Change in NCWC 876,000,000
EBIT 1,537,600,000
Tax Provision 235,100,000
Depreciation and Amortization 177,600,000
Capital Expenditure -124,300,000
Unlevered Free Cash Flow 2,095,340,990
Current Assets 20,754,100,000
Current Cash 1,147,700,000
Current Liabilities 13,297,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,309,200,000
Change in NCWC 446,000,000
EBIT 1,375,600,000
Tax Provision 255,000,000
Depreciation and Amortization 142,100,000
Capital Expenditure -102,500,000
Unlevered Free Cash Flow 1,552,986,310
Current Assets 22,689,700,000
Current Cash 2,006,400,000
Current Liabilities 14,820,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,863,200,000
Change in NCWC 174,400,000
EBIT 1,321,800,000
Tax Provision 268,200,000
Depreciation and Amortization 116,800,000
Capital Expenditure -111,700,000
Unlevered Free Cash Flow 1,253,254,408
Current Assets 17,367,000,000
Current Cash 1,328,000,000
Current Liabilities 10,350,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,688,800,000
Change in NCWC -978,800,000
EBIT 1,185,700,000
Tax Provision 338,300,000
Depreciation and Amortization 101,200,000
Capital Expenditure -147,700,000
Unlevered Free Cash Flow -172,040,170
Current Assets 16,656,800,000
Current Cash 1,851,400,000
Current Liabilities 8,137,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,667,600,000
Change in NCWC 221,500,000
EBIT 1,368,200,000
Tax Provision 398,000,000
Depreciation and Amortization 93,600,000
Capital Expenditure -124,500,000
Unlevered Free Cash Flow 1,159,017,605
Current Assets 11,809,700,000
Current Cash 1,514,200,000
Current Liabilities 3,849,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,446,100,000
Change in NCWC 1,168,400,000
EBIT 1,354,400,000
Tax Provision 390,600,000
Depreciation and Amortization 89,400,000
Capital Expenditure -133,200,000
Unlevered Free Cash Flow 2,099,795,183
Current Assets 10,298,400,000
Current Cash 1,331,200,000
Current Liabilities 3,725,200,000
Current Debt 35,700,000
Non-Cash Working Capital (NCWC) 5,277,700,000
Change in NCWC 331,900,000
EBIT 1,223,700,000
Tax Provision 336,900,000
Depreciation and Amortization 88,400,000
Capital Expenditure -88,200,000
Unlevered Free Cash Flow 1,227,354,708
Current Assets 8,494,300,000
Current Cash 835,500,000
Current Liabilities 2,713,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,945,800,000
Change in NCWC -2,038,300,000
EBIT 811,700,000
Tax Provision 272,200,000
Depreciation and Amortization 95,000,000
Capital Expenditure -99,300,000
Unlevered Free Cash Flow -1,487,961,942

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