Discounted Cash Flow (DCF) Analysis Unlevered

IAC Inc. (IAC)

$51.6

+1.19 (+2.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 165.18 | 51.6 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	2,533.05	4,757.05	3,047.68	3,699.63	5,235.28	6,737.36	8,670.41	11,158.08	14,359.51	18,479.47
Revenue (%)
EBITDA	422.51	716.38	437.74	920.65	-952.39	711.40	915.52	1,178.19	1,516.23	1,951.26
EBITDA (%)
EBIT	273.03	535.38	226.87	770.80	-1,391.09	319.90	411.68	529.80	681.80	877.42
EBIT (%)
Depreciation	149.47	180.99	210.87	149.85	438.70	391.51	503.84	648.39	834.43	1,073.84
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	2,255.30	3,159.29	3,701.17	2,138.52	1,656.76	4,936.32	6,352.63	8,175.29	10,520.91	13,539.51
Total Cash (%)
Account Receivables	289.32	307.64	270.45	693.21	607.81	769.54	990.34	1,274.48	1,640.15	2,110.73
Account Receivables (%)
Inventories	-	-	-	30.71	43.46	55.93	71.97	92.62	119.20	153.40
Inventories (%)
Accounts Payable	74.91	94.36	92.17	203.17	133.11	215.59	277.44	357.04	459.48	591.31
Accounts Payable (%)
Capital Expenditure	-54.68	-136.65	-61.57	-90.21	-139.75	-163.84	-210.85	-271.35	-349.20	-449.39
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 51.6
Beta	1.146
Diluted Shares Outstanding	94.71
Cost of Debt
Tax Rate	23.33
After-tax Cost of Debt	4.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.902
Total Debt	2,049.76
Total Equity	4,887.10
Total Capital	6,936.86
Debt Weighting	29.55
Equity Weighting	70.45
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	2,533.05	4,757.05	3,047.68	3,699.63	5,235.28	6,737.36	8,670.41	11,158.08	14,359.51	18,479.47
EBITDA	422.51	716.38	437.74	920.65	-952.39	711.40	915.52	1,178.19	1,516.23	1,951.26
EBIT	273.03	535.38	226.87	770.80	-1,391.09	319.90	411.68	529.80	681.80	877.42
Tax Rate	19.24%	12.82%	-28.71%	18.12%	23.33%	8.96%	8.96%	8.96%	8.96%	8.96%
EBIAT	220.49	466.77	292	631.11	-1,066.55	291.23	374.79	482.32	620.71	798.80
Depreciation	149.47	180.99	210.87	149.85	438.70	391.51	503.84	648.39	834.43	1,073.84
Accounts Receivable	-	-18.32	37.19	-422.75	85.40	-161.73	-220.79	-284.14	-365.67	-470.58
Inventories	-	-	-	-	-12.75	-12.47	-16.05	-20.65	-26.57	-34.20
Accounts Payable	-	19.45	-2.18	111	-70.07	82.48	61.85	79.60	102.44	131.83
Capital Expenditure	-54.68	-136.65	-61.57	-90.21	-139.75	-163.84	-210.85	-271.35	-349.20	-449.39
UFCF	315.29	512.24	476.30	379	-765.02	427.17	492.79	634.18	816.13	1,050.29
WACC
PV UFCF						397.41	426.51	510.63	611.35	731.93
SUM PV UFCF										2,677.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.49
Free cash flow (t + 1)	1,071.30
Terminal Value	19,513.62
Present Value of Terminal Value	13,598.70

Intrinsic Value

Enterprise Value	16,276.52
Net Debt	632.37
Equity Value	15,644.15
Shares Outstanding	94.71
Equity Value Per Share	165.18