Discounted Cash Flow (DCF) Analysis Unlevered

IAC Inc. (IAC)

$55.92

+1.62 (+2.98%)

All numbers are in Millions, Currency in USD

Stock DCF: 288.37 | 55.92 | undervalue

Operating Data

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 (%)
EBITDA	235.58	422.51	716.38	437.74	920.65	649.98	730.99	822.08	924.53	1,039.75
EBITDA (%)
EBIT	119.17	273.03	535.38	226.87	770.80	448.65	504.56	567.44	638.15	717.68
EBIT (%)
Depreciation	116.41	149.47	180.99	210.87	149.85	201.33	226.43	254.64	286.38	322.07
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	1,635.80	2,255.30	3,159.29	3,701.17	2,138.52	3,196.69	3,595.07	4,043.09	4,546.95	5,113.60
Total Cash (%)
Account Receivables	337.27	289.32	307.64	270.45	693.21	463.48	521.24	586.20	659.26	741.41
Account Receivables (%)
Inventories	-	-	-	-	30.71	34.54	38.84	43.68	49.13	55.25
Inventories (%)
Accounts Payable	76.57	74.91	94.36	92.17	203.17	131.24	147.60	165.99	186.68	209.95
Accounts Payable (%)
Capital Expenditure	-75.52	-54.68	-136.65	-61.57	-90.21	-97.97	-110.18	-123.91	-139.35	-156.72
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 55.92
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	8.212
Total Debt	2,076.24
Total Equity	5,296.26
Total Capital	7,372.49
Debt Weighting	28.16
Equity Weighting	71.84
Wacc

Build Up Free Cash

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
EBITDA	235.58	422.51	716.38	437.74	920.65	649.98	730.99	822.08	924.53	1,039.75
EBIT	119.17	273.03	535.38	226.87	770.80	448.65	504.56	567.44	638.15	717.68
Tax Rate	-355.40%	19.24%	12.82%	-28.71%	18.12%	-66.78%	-66.78%	-66.78%	-66.78%	-66.78%
EBIAT	542.69	220.49	466.77	292	631.11	748.27	841.53	946.40	1,064.34	1,196.98
Depreciation	116.41	149.47	180.99	210.87	149.85	201.33	226.43	254.64	286.38	322.07
Accounts Receivable	-	47.95	-18.32	37.19	-422.75	229.72	-57.76	-64.96	-73.05	-82.16
Inventories	-	-	-	-	-	-3.83	-4.30	-4.84	-5.44	-6.12
Accounts Payable	-	-1.66	19.45	-2.18	111	-71.93	16.36	18.39	20.69	23.26
Capital Expenditure	-75.52	-54.68	-136.65	-61.57	-90.21	-97.97	-110.18	-123.91	-139.35	-156.72
UFCF	583.58	361.57	512.24	476.30	379	1,005.61	912.06	1,025.73	1,153.55	1,297.31
WACC
PV UFCF						946.19	807.46	854.43	904.13	956.72
SUM PV UFCF										4,468.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.28
Free cash flow (t + 1)	1,323.26
Terminal Value	30,917.24
Present Value of Terminal Value	22,800.43

Intrinsic Value

Enterprise Value	27,269.36
Net Debt	-42.49
Equity Value	27,311.86
Shares Outstanding	94.71
Equity Value Per Share	288.37