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	3,307.24	2,533.05	4,757.05	3,047.68	3,699.63	4,160.68	4,679.19	5,262.32	5,918.12	6,655.65
Revenue (%)
Operating Cash Flow	416.70	369.43	937.94	154.58	136.95	463.29	521.03	585.96	658.98	741.11
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	341.18	314.75	801.29	93.01	46.74	365.32	410.85	462.05	519.63	584.39

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	3,307.24	2,533.05	4,757.05	3,047.68	3,699.63	4,160.68	4,679.19	5,262.32	5,918.12	6,655.65
Operating Cash Flow	416.70	369.43	937.94	154.58	136.95	463.29	521.03	585.96	658.98	741.11
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	341.18	314.75	801.29	93.01	46.74	365.32	410.85	462.05	519.63	584.39
WACC
PV LFCF						343.80	363.87	385.10	407.58	431.37
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