IAC Inc. (IAC) Stock Valuation — DCF Analysis
Internet Content & Information · NASDAQ
Current Price
$46.39
Intrinsic Value
$40.2
-15.4% margin of safety
COMPETITIVE MOAT
↑Brand Recognition & User Loyalty
IAC's portfolio of established brands like The Knot and HomeAdvisor fosters strong user recognition and loyalty. This repeat engagement creates a sticky customer base, making it harder for competitors to attract users.
↑Network Effects in Dating
Match Group, a former IAC subsidiary now independent but historically a key asset, benefits from significant network effects. More users attract more users, creating a self-reinforcing cycle that strengthens its market position.
↑Data Analytics & Personalization
IAC leverages vast user data to personalize experiences and improve its offerings. This data-driven approach enhances user satisfaction and retention across its diverse digital properties.
INVESTMENT RISKS
↓Data Breach Vulnerability
A recent data breach highlights IAC's exposure to cybersecurity threats. Such incidents can erode customer trust and lead to significant financial and reputational damage.
↓Regulatory Scrutiny & Privacy Concerns
The increasing focus on data privacy regulations poses a risk. IAC's reliance on user data could lead to compliance challenges and potential fines.
↓Dependence on Key Brands
While diverse, IAC's success is heavily reliant on the performance of its flagship brands. Any decline in these key properties could disproportionately impact overall revenue and growth.
Base case
IAC base case valuation
A base case discounted cash flow model for IAC estimates an intrinsic value of about $40.2 per share, against a current price of $46.39. The model assumes 20.0% annual free cash flow growth, a 10.0% discount rate, and a 30x exit multiple.
Intrinsic Value
$40.2
Margin of safety
-15.4%
Expected annual return
-2.8%
Base case assumptions: 20.0% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-29.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the IAC valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for IAC Inc. respond.
Open DCF Calculator for IACCompany Overview
IAC, Inc. engages in media and Internet business. It operates through the following segments: Dotdash Meredith, Angi Inc, Search, and Emerging and Other. The Dotdash Meredith segment provides digital and print publishing services from mobile to magazines. The ANGI Homeservices segment offers repairing, remodeling, cleaning, and landscaping through category-transforming products under HomeAdvisor, Angie's List, Handy, and Fixd Repair brands. The Search segment consists of Ask Media Group, which provides general search services and information. The Emerging and Other segment includes platforms Care.com, Bluecrew, NurseFly Mosaic Group, Vivian Health, The Daily Beast, IAC Films, and Newco. The company was founded on August 24, 1995, and is headquartered in New York, NY.
Financial Metrics — IAC Stock Valuation Data
Revenue/Share (TTM)
$29.26
FCF/Share (TTM)
$0.73
ROIC (TTM)
0.3%
ROE (TTM)
0.9%
P/FCF
61.2x
EV/EBITDA
8.3x
FCF Yield
1.63%
Debt/Equity
0.31x
Based on trailing twelve-month data, IAC shows a free cash flow per share of $0.73 and a ROIC of 0.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 61.2x and FCF yield of 1.63% are important context metrics when evaluating IAC's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of IAC?
IAC Inc. currently generates $0.73 in free cash flow per share. At the current price of $46.39, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is IAC undervalued?
IAC trades at a P/FCF ratio of 61.2x with a free cash flow yield of 1.63%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether IAC is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value IAC stock using DCF?
To perform a DCF valuation on IAC Inc.: (1) Start with the trailing free cash flow per share ($0.73) as the base, (2) project future FCF growth over 5-10 years based on Internet Content & Information industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting IAC's risk profile — with a debt-to-equity of 0.31x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to IAC?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For IAC Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Internet Content & Information trends, then discounting those amounts to today's dollars. IAC's ROIC of 0.3% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect IAC stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For IAC, with a debt-to-equity ratio of 0.31x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 8.3x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See IAC PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Communication Services valuationsDCF and P/E value IAC with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.