As of December 15, 2025, Invesco Perpetual Select Trust PLC's estimated intrinsic value ranges from $0.83 to $108.33 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1.42 | -99.1% |
| Discounted Cash Flow (5Y) | $0.83 | -99.5% |
| Dividend Discount Model (Multi-Stage) | $54.29 | -67.1% |
| Dividend Discount Model (Stable) | $4.09 | -97.5% |
| Earnings Power Value | $108.33 | -34.3% |
Is Invesco Perpetual Select Trust PLC (IVPU.L) undervalued or overvalued?
With the current market price at $165.00, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Invesco Perpetual Select Trust PLC's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.06 | 1.08 |
| Cost of equity | 10.1% | 12.3% |
| Cost of debt | 4.0% | 13.2% |
| Tax rate | 1.2% | 10.9% |
| Debt/Equity ratio | 0.06 | 0.06 |
| After-tax WACC | 9.8% | 12.2% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $1 | $13M | 72.1% |
| 10-Year Growth | $1 | $14M | 51.5% |
| 5-Year EBITDA | $(1,234) | $12M | 68.9% |
| 10-Year EBITDA | $0 | $13M | 47.6% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $13M |
| Discount Rate (WACC) | 12.2% - 9.8% |
| Enterprise Value | $109M - $136M |
| Net Debt | $12M |
| Equity Value | $96M - $124M |
| Outstanding Shares | 1M |
| Fair Value | $95 - $122 |
| Selected Fair Value | $108.33 |
| Metric | Value |
|---|---|
| Market Capitalization | $168M |
| Enterprise Value | $180M |
| Trailing P/E | 508.06 |
| Forward P/E | 219.89 |
| Trailing EV/EBITDA | 12.55 |
| Current Dividend Yield | 407.07% |
| Dividend Growth Rate (5Y) | 10.96% |
| Debt-to-Equity Ratio | 0.06 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $0.43 |
| Discounted Cash Flow (5Y) | 25% | $0.21 |
| Dividend Discount Model (Multi-Stage) | 20% | $10.86 |
| Dividend Discount Model (Stable) | 15% | $0.61 |
| Earnings Power Value | 10% | $10.83 |
| Weighted Average | 100% | $22.94 |
Based on our comprehensive valuation analysis, Invesco Perpetual Select Trust PLC's intrinsic value is $22.94, which is approximately 86.1% below the current market price of $165.00.
Key investment considerations:
Given these factors, we believe Invesco Perpetual Select Trust PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.