A Look at Invesco’s (IVZ) Valuation After Standout Q3 Results and Record Asset Growth

Invesco (NYSE:IVZ) delivered a strong third quarter for 2025, posting sharp gains in both revenue and net income. Record assets under management and healthy net long-term inflows caught investor attention this season.

See our latest analysis for Invesco.

Invesco’s momentum has accelerated throughout 2025, with the share price climbing 32.5% year-to-date and a 34% total return over the past year. Recent headlines, including a dividend affirmation, a large-scale buyback update, strategic divestitures, and an eye on new M&A, have all reinforced optimism around the company’s growth and capital discipline. Investors aren’t just seeing short-term gains; Invesco’s five-year total shareholder return of 91% highlights a longer-term trajectory that’s turning heads in the asset management space.

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But after such a run-up and robust financials, is Wall Street still underestimating Invesco, or has the recent surge in share price already accounted for all that future growth potential?

Most Popular Narrative: 11% Undervalued

With Invesco's last close at $23.39 and the most widely followed narrative estimating fair value at $26.27, the current price sits noticeably below consensus calculations. This gap has fueled considerable discussion among analysts and investors about what is driving the firm's perceived upside.

The company's aggressive expansion in private markets and alternative asset offerings, including strategic partnerships (e.g., with Barings and MassMutual) and increased distribution through wealth management channels, aligns with the growing demand for alternatives and could drive higher-fee revenue streams and improved earnings resilience.

Read the complete narrative.

Want a look under the hood at why the narrative points to hidden upside? Much depends on ambitious margin improvements, aggressive cost controls, and one notable assumption about how quickly operating leverage will boost earnings. This narrative includes bold forecasts and significant expectations. So what is the catch? You’ll have to dig deeper to see why analysts are willing to put a premium on this forecast.

Result: Fair Value of $26.27 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent fee pressure from the shift to low-cost investment products, along with rising competition, could quickly upend these bullish expectations for Invesco’s future margins.

Find out about the key risks to this Invesco narrative.

Build Your Own Invesco Narrative

If you want to challenge this perspective or would rather build a thesis from your own insights and research, it only takes a few minutes to create a personalized viewpoint: Do it your way

A great starting point for your Invesco research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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