Could Invesco Revive Its Valuation?
In 2Q17, Invesco’s (IVZ) AUM (assets under management) rose 2.8% to $858.3 billion from $834.8 billion in 1Q17, and its net revenue rose 4.5% to $906.3 million from $867.1 million in 1Q17.
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Invesco’s one-year forward PE (price-to-earnings) ratio is 13.1x, whereas competitors’ average ratio is 16.2x, reflecting Invesco’s discounted valuation. Competitors’ ratios are as follows:
In 2Q17, Invesco’s total net flow fell to $2.4 billion from $2.7 billion in 2Q16, mainly due to lower long-term inflow. In 2Q17, the company’ long-term inflow was $42.3 billion, compared with $45.8 billion in 2Q16. Invesco’s valuation could rise in the next few quarters, as the company has planned to acquire Source, which would enhance its ability to deliver clients’ investment objectives.
Book value per share
Invesco’s book value per share is $19.59, whereas competitors’ (XLF) book values are as follows: