IAC Inc. (IAC) Intrinsic Value & DCF Valuation
Internet Content & Information · NASDAQ
Current Price
$46.15
Intrinsic Value
$39.12
-18.0% margin of safety
What Is IAC Inc.'s Intrinsic Value?
As of 2026-08-05, the base-case DCF model estimates the intrinsic value of IAC Inc. (IAC) at $39.12 per share, compared with a market price of $46.15, a margin of safety of -18.0%. The base case assumes 2.0% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $32.25 to $47. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is IAC Inc. (IAC) Undervalued?
At the current price of $46.15, IAC trades above the base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Diverse Portfolio of Digital Brands
IAC owns a collection of well-established digital brands across various verticals. This diversification reduces reliance on any single product or market.
↑Brand Recognition and User Loyalty
Many of IAC's brands, like The Daily Beast and HomeAdvisor, benefit from strong brand recognition. This fosters user loyalty and repeat engagement.
↑Data and Analytics Capabilities
IAC leverages user data across its platforms to improve product offerings and personalize user experiences. This creates a feedback loop for continuous improvement.
INVESTMENT RISKS
↓Dependence on Advertising Revenue
A significant portion of IAC's revenue is derived from advertising. Economic downturns or shifts in advertiser spending can materially impact profitability.
↓Integration and Monetization Challenges
Successfully integrating acquired businesses and effectively monetizing diverse digital assets presents ongoing operational and strategic challenges.
↓Regulatory Scrutiny of Digital Platforms
The digital content industry faces increasing regulatory oversight regarding data privacy, content moderation, and market dominance, which could impact business models.
Base case
IAC base case valuation
Intrinsic Value
$39.12
Margin of safety
-18.0%
Expected annual return
-3.3%
Base case assumptions: 2.0% annual growth, 10.0% discount rate, 24.73x exit multiple, 5 year projection. Data as of 2026-08-05.
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)
$28.03
FCF/Share (TTM)
$1.86
ROIC (TTM)
0.2%
ROE (TTM)
8.6%
P/FCF
24.7x
EV/EBITDA
4.2x
FCF Yield
4.04%
Debt/Equity
0.28x
On a trailing twelve-month basis, IAC generates free cash flow per share of $1.86 alongside a ROIC of 0.2%, both central inputs for a DCF valuation. Its P/FCF ratio of 24.7x and FCF yield of 4.04% then frame how IAC is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of IAC?
IAC Inc. currently generates $1.86 in free cash flow per share. At the current price of $46.15, 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 24.7x with a free cash flow yield of 4.04%. This P/FCF is in a moderate range. 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 ($1.86) 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 0.28x, 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 0.2% means the company's return on invested capital sits below the level that typically clears 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 0.28x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 4.2x, 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 2026-08-05. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.