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What You Need to Know about Invesco's 2Q17 Performance

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Part 3
What You Need to Know about Invesco's 2Q17 Performance PART 3 OF 5

Could Invesco Revive Its Valuation?

Lower 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.

Could Invesco Revive Its Valuation?

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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:

  • Franklin Resources (BEN): 14.5x
  • Evercore (EVR): 14.5x
  • BlackRock (BLK): 19.6x

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:

  • Franklin Resources (BEN): $22.22
  • Evercore (EVR): $11.69
  • State Street (STT): $50.45
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