Is Invesco Ltd. overvalued or undervalued?

As of 28 January 2025, the valuation grade for Invesco Ltd. has moved from risky to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 10, a Price to Book Value of 0.54, and an EV to EBITDA of 5.79, all of which suggest that the stock is trading at a discount compared to its peers.
In comparison to its industry peers, Invesco Ltd. has a lower P/E ratio than Northern Trust Corp. at 11.61 and Ares Capital Corp. at 11.26, both of which are classified as very attractive. This further supports the conclusion that Invesco is undervalued. Despite a challenging year-to-date performance of -14.59% compared to the S&P 500's 2.44%, the company's strong dividend yield of 3.51% and improving valuation metrics position it favorably for potential investors.