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 2,533.054,757.053,047.683,699.635,235.286,737.368,670.4111,158.0814,359.5118,479.47
Revenue (%)
EBITDA 422.51716.38437.74920.65-952.39711.40915.521,178.191,516.231,951.26
EBITDA (%)
EBIT 273.03535.38226.87770.80-1,391.09319.90411.68529.80681.80877.42
EBIT (%)
Depreciation 149.47180.99210.87149.85438.70391.51503.84648.39834.431,073.84
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 2,255.303,159.293,701.172,138.521,656.764,936.326,352.638,175.2910,520.9113,539.51
Total Cash (%)
Account Receivables 289.32307.64270.45693.21607.81769.54990.341,274.481,640.152,110.73
Account Receivables (%)
Inventories ---30.7143.4655.9371.9792.62119.20153.40
Inventories (%)
Accounts Payable 74.9194.3692.17203.17133.11215.59277.44357.04459.48591.31
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 2,533.054,757.053,047.683,699.635,235.286,737.368,670.4111,158.0814,359.5118,479.47
EBITDA 422.51716.38437.74920.65-952.39711.40915.521,178.191,516.231,951.26
EBIT 273.03535.38226.87770.80-1,391.09319.90411.68529.80681.80877.42
Tax Rate 19.24%12.82%-28.71%18.12%23.33%8.96%8.96%8.96%8.96%8.96%
EBIAT 220.49466.77292631.11-1,066.55291.23374.79482.32620.71798.80
Depreciation 149.47180.99210.87149.85438.70391.51503.84648.39834.431,073.84
Accounts Receivable --18.3237.19-422.7585.40-161.73-220.79-284.14-365.67-470.58
Inventories -----12.75-12.47-16.05-20.65-26.57-34.20
Accounts Payable -19.45-2.18111-70.0782.4861.8579.60102.44131.83
Capital Expenditure -54.68-136.65-61.57-90.21-139.75-163.84-210.85-271.35-349.20-449.39
UFCF 315.29512.24476.30379-765.02427.17492.79634.18816.131,050.29
WACC
PV UFCF 397.41426.51510.63611.35731.93
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