IVZ · NYQ · Financial Services
Invesco Ltd.
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD -10.39
Market price
USD 27.77
Implied upside
-137.4%
10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31
No usable EV/EBITDA (EBITDA is not positive), so the exit multiple falls back to 8x.
Value Per Share
Same forecast, different terminal treatment. Percentages vs price.
Forecast Cashflows
Reporting currency (USD). Outflows negative.
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 | CAGR |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | USD 5.4bn | USD 5.8bn | USD 6.1bn | USD 6.5bn | USD 6.9bn | USD 7.2bn | USD 7.5bn | USD 7.8bn | USD 8.0bn | USD 8.2bn | +4.9% |
| EBIT | USD 242.3m | USD 259.9m | USD 277.2m | USD 294.1m | USD 310.2m | USD 325.4m | USD 339.3m | USD 351.9m | USD 362.7m | USD 371.8m | +4.9% |
| NOPAT | USD 191.4m | USD 205.3m | USD 219.0m | USD 232.3m | USD 245.1m | USD 257.0m | USD 268.1m | USD 278.0m | USD 286.6m | USD 293.7m | +4.9% |
| Add depreciation & amortisation | USD 158.7m | USD 170.3m | USD 181.6m | USD 192.6m | USD 203.2m | USD 213.1m | USD 222.3m | USD 230.5m | USD 237.6m | USD 243.6m | +4.9% |
| Less capital expenditure | USD -114.3m | USD -134.6m | USD -156.4m | USD -179.5m | USD -203.6m | USD -228.6m | USD -254.1m | USD -279.7m | USD -305.1m | USD -329.8m | +12.5% |
| Capex, % of revenue | 2.1% | 2.3% | 2.5% | 2.8% | 3.0% | 3.2% | 3.4% | 3.6% | 3.8% | 4.0% | - |
| Less increase in working capital | USD 171.0m | USD -66.0m | USD -65.0m | USD -63.1m | USD -60.4m | USD -56.7m | USD -52.3m | USD -46.9m | USD -40.8m | USD -34.0m | - |
| Free cashflow to firm | USD 406.8m | USD 175.0m | USD 179.3m | USD 182.4m | USD 184.3m | USD 184.8m | USD 184.0m | USD 181.8m | USD 178.3m | USD 173.5m | -9.0% |
| Discount factor | 0.9600 | 0.8847 | 0.8153 | 0.7514 | 0.6924 | 0.6381 | 0.5881 | 0.5420 | 0.4995 | 0.4603 | - |
| Present value | USD 390.5m | USD 154.8m | USD 146.2m | USD 137.0m | USD 127.6m | USD 117.9m | USD 108.2m | USD 98.6m | USD 89.1m | USD 79.9m | - |
| Present Value Of The Forecast | USD 1.4bn | ||||||||||
Discount Rate
Source shown per component. All overridable above.
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 1.435 | Reported 1.650, pulled toward 1.0 (Blume) |
| Cost of equity | 10.97% | Risk-free + beta x equity risk premium |
| Cost of debt | 6.89% | Risk-free + 200bp, the spread for a D rating at -8.4x interest cover, capped at 200bp because one year's cover is too noisy to charge more. Book interest / average debt was lower, at 1.0%. |
| Market capitalisation | USD 12.2bn | 55.5% of capital |
| Total debt | USD 9.8bn | 44.5% of capital, book value as a proxy |
| Tax rate | 21.0% | Effective, capped at statutory |
| WACC | 8.51% | E/V x Re + D/V x Rd x (1 - t) |
Terminal Value
Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.
Perpetuity growth at 2.50%
53% of EV
- Forecast FCFF, final year
- USD 173.5m
- Capex at depreciation, working capital in reinvestment
- USD 293.7m
- Less reinvestment at g/ROIC (29.4% of NOPAT)
- USD -86.3m
- Capitalised
- USD 207.4m
- ROIC (WACC floor)
- 8.5%
- Terminal value, undiscounted
- USD 3.5bn
- Terminal value, discounted
- USD 1.6bn
- Enterprise value
- USD 3.1bn
- Less net debt
- USD 7.8bn
- Equity value
- USD -4.7bn
Exit at 8.0x EBITDA
61% of EV
- Terminal value, undiscounted
- USD 4.9bn
- Terminal value, discounted
- USD 2.3bn
- Enterprise value
- USD 3.7bn
- Less net debt
- USD 7.8bn
- Equity value
- USD -4.1bn
Sensitivity
Value per share (USD) by discount rate and long-run growth.
| Long-run growth | |||||
|---|---|---|---|---|---|
| Discount rate | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
| 6.51% | -8.08 | -8.20 | -8.32 | -8.44 | -8.56 |
| 7.51% | -9.30 | -9.40 | -9.49 | -9.59 | -9.69 |
| 8.51% | -10.22 | -10.31 | -10.39 | -10.47 | -10.55 |
| 9.51% | -10.95 | -11.02 | -11.09 | -11.16 | -11.23 |
| 10.51% | -11.54 | -11.59 | -11.65 | -11.71 | -11.77 |
Outlined: this model. Green text: above today's price of 27.77. Shading: distance from this model's own value.
Priced In
What each input would have to be to justify the current price, one at a time.
| Input | Actual | Model | Implied | Gap |
|---|---|---|---|---|
| Revenue growth, a year | 1.8% | 2.6% | 32.2% | |
| EBIT margin | 22.1% | 4.5% | 30.3% | |
| Discount rate | - | 8.5% | 3.0% |
Live formulas, not pasted numbers - edit a driver and the workbook reprices.
Yahoo Finance and RBA data. General information, not advice. Methodology.