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 3,307.242,533.054,757.053,047.683,699.634,160.684,679.195,262.325,918.126,655.65
Revenue (%)
EBITDA 235.58422.51716.38437.74920.65649.98730.99822.08924.531,039.75
EBITDA (%)
EBIT 119.17273.03535.38226.87770.80448.65504.56567.44638.15717.68
EBIT (%)
Depreciation 116.41149.47180.99210.87149.85201.33226.43254.64286.38322.07
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 1,635.802,255.303,159.293,701.172,138.523,196.693,595.074,043.094,546.955,113.60
Total Cash (%)
Account Receivables 337.27289.32307.64270.45693.21463.48521.24586.20659.26741.41
Account Receivables (%)
Inventories ----30.7134.5438.8443.6849.1355.25
Inventories (%)
Accounts Payable 76.5774.9194.3692.17203.17131.24147.60165.99186.68209.95
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 3,307.242,533.054,757.053,047.683,699.634,160.684,679.195,262.325,918.126,655.65
EBITDA 235.58422.51716.38437.74920.65649.98730.99822.08924.531,039.75
EBIT 119.17273.03535.38226.87770.80448.65504.56567.44638.15717.68
Tax Rate -355.40%19.24%12.82%-28.71%18.12%-66.78%-66.78%-66.78%-66.78%-66.78%
EBIAT 542.69220.49466.77292631.11748.27841.53946.401,064.341,196.98
Depreciation 116.41149.47180.99210.87149.85201.33226.43254.64286.38322.07
Accounts Receivable -47.95-18.3237.19-422.75229.72-57.76-64.96-73.05-82.16
Inventories ------3.83-4.30-4.84-5.44-6.12
Accounts Payable --1.6619.45-2.18111-71.9316.3618.3920.6923.26
Capital Expenditure -75.52-54.68-136.65-61.57-90.21-97.97-110.18-123.91-139.35-156.72
UFCF 583.58361.57512.24476.303791,005.61912.061,025.731,153.551,297.31
WACC
PV UFCF 946.19807.46854.43904.13956.72
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