Discounted Cash Flow (DCF) Analysis Levered

IAC Inc. (IAC)

$52.65

-0.76 (-1.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 129.90 | 52.65 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,307.242,533.054,757.053,047.683,699.634,160.684,679.195,262.325,918.126,655.65
Revenue (%)
Operating Cash Flow 416.70369.43937.94154.58136.95463.29521.03585.96658.98741.11
Operating Cash Flow (%)
Capital Expenditure -75.52-54.68-136.65-61.57-90.21-97.97-110.18-123.91-139.35-156.72
Capital Expenditure (%)
Free Cash Flow 341.18314.75801.2993.0146.74365.32410.85462.05519.63584.39

Weighted Average Cost Of Capital

Share price $ 52.65
Beta 0.991
Diluted Shares Outstanding 94.71
Cost of Debt
Tax Rate 18.12
After-tax Cost of Debt 1.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.304
Total Debt 2,076.24
Total Equity 4,986.55
Total Capital 7,062.79
Debt Weighting 29.40
Equity Weighting 70.60
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,307.242,533.054,757.053,047.683,699.634,160.684,679.195,262.325,918.126,655.65
Operating Cash Flow 416.70369.43937.94154.58136.95463.29521.03585.96658.98741.11
Capital Expenditure -75.52-54.68-136.65-61.57-90.21-97.97-110.18-123.91-139.35-156.72
Free Cash Flow 341.18314.75801.2993.0146.74365.32410.85462.05519.63584.39
WACC
PV LFCF 343.80363.87385.10407.58431.37
SUM PV LFCF 1,931.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.26
Free cash flow (t + 1) 596.07
Terminal Value 13,992.34
Present Value of Terminal Value 10,328.59

Intrinsic Value

Enterprise Value 12,260.31
Net Debt -42.49
Equity Value 12,302.80
Shares Outstanding 94.71
Equity Value Per Share 129.90