Invesco Ltd.: Model update

Research evidence excerpt

Invesco Ltd.: Model update

Michael Cho AC North America Equity Research

(1-212) 622-3619 13 July 2026 J P M O R G A N

michael.cho@jpmchase.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We rate Invesco shares Neutral. Invesco has sometimes

generated better-than-peer long-term flows, and recent quarters

have been positive. That said, higher fee active products remain

considerable headwinds to organic revenues. Active products

remain in outflows, while lower-fee passive products have been

driving inflows. While the QQQ ETF conversion has been a

tailwind, competition is increasing and we think the choppy fee

rate environment and ongoing AUM mix shift (active equity

outflows, low-fee product inflows) will weigh on more earnings

YTD 1m 3m 12m potential in the coming periods.

Abs 10.3% 5.5% 22.9% 66.6%

Rel -0.4% 1.3% 11.8% 45.9% Valuation

Our Dec 2026 price target is $29. We value Invesco at 7.0x ourCompany Data

2027E adjusted EBITDA (implies ~10x P/E), below its current

Shares O/S (mn) 451

52-week range ($) 29.82-16.49 trading multiple, to get an enterprise value and then subtract

Market cap ($ mn) 13,072.88 debt, the preferred equity, the European cash capital

Exchange rate 1.00 requirement, and add cash and liquid seed capital to get a value

Free float (%) 96.0%

3M ADV (mn) 5.43 of Invesco equity.

3M ADV ($ mn) 145.5

Volatility (90 Day) 37

Index S&P 500 Performance Drivers

BBG ANR (Buy | Hold | Sell) 5|9|0

Key Metrics (FYE Dec)

$ in millions FY25A FY26E FY27E

Financial Estimates

Investment advisory/ Mgt. Fees 4,615 6,003 6,494

Performance fees 42 58 54

Total revenue 4,659 5,476 5,966

Compensation and benefits (1,990) (2,245) (2,513)

Operating expense (2,821) (3,445) (3,734)

Adj. EBIT (696) 1,606 1,728

Adj. PBT 1,540 2,010 2,217

Adj.