Discounted Cash Flow (DCF) Analysis Unlevered

LendingTree, Inc. (TREE)

$23.86

-1.31 (-5.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 156.23 | 23.86 | 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 617.74764.861,106.60909.991,098.501,294.711,525.961,798.512,119.752,498.37
Revenue (%)
EBITDA 50.4574.8495.8661.05187.93130.59153.91181.40213.80251.99
EBITDA (%)
EBIT 28.9043.3629.62-6.23127.2861.9573.0286.06101.43119.55
EBIT (%)
Depreciation 21.5531.4866.2467.2860.6568.6380.8995.34112.37132.44
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 368.55105.1060.24169.93251.23311.74367.42433.05510.40601.56
Total Cash (%)
Account Receivables 53.4491.07113.4989.8497.66128.37151.30178.33210.18247.72
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 9.2515.072.8710.111.6912.9315.2417.9621.1724.95
Accounts Payable (%)
Capital Expenditure -8.04-14.91-20.04-42.15-35.06-33.37-39.33-46.35-54.63-64.39
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 23.86
Beta 1.734
Diluted Shares Outstanding 13.70
Cost of Debt
Tax Rate 18.15
After-tax Cost of Debt 5.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.988
Total Debt 740.32
Total Equity 326.76
Total Capital 1,067.09
Debt Weighting 69.38
Equity Weighting 30.62
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 617.74764.861,106.60909.991,098.501,294.711,525.961,798.512,119.752,498.37
EBITDA 50.4574.8495.8661.05187.93130.59153.91181.40213.80251.99
EBIT 28.9043.3629.62-6.23127.2861.9573.0286.06101.43119.55
Tax Rate 39.41%-120.60%42.46%0.00%18.15%-4.12%-4.12%-4.12%-4.12%-4.12%
EBIAT 17.5195.6517.04-6.23104.1864.5176.0389.61105.61124.48
Depreciation 21.5531.4866.2467.2860.6568.6380.8995.34112.37132.44
Accounts Receivable --37.63-22.4123.65-7.82-30.72-22.93-27.02-31.85-37.54
Inventories ----------
Accounts Payable -5.82-12.207.24-8.4211.242.312.723.213.78
Capital Expenditure -8.04-14.91-20.04-42.15-35.06-33.37-39.33-46.35-54.63-64.39
UFCF 31.0280.4328.6349.79113.5380.2996.97114.29134.71158.77
WACC
PV UFCF 74.8584.2792.59101.74111.78
SUM PV UFCF 465.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.27
Free cash flow (t + 1) 161.94
Terminal Value 3,072.87
Present Value of Terminal Value 2,163.48

Intrinsic Value

Enterprise Value 2,628.71
Net Debt 489.09
Equity Value 2,139.62
Shares Outstanding 13.70
Equity Value Per Share 156.23