IAC
IAC Inc.
$42.38
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 9.0% below fair value
You pay
$42.38
Bear
$37.27
Fair
$46.58
Bull
$55.90
Bear
$37.27
-12.1%
$2.97 × 12x P/E
Fair
$46.58
+9.9%
$2.97 × 15x P/E
Bull
$55.90
+31.9%
$2.97 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
14.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $51.33 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $46.58 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples