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IAC/InterActiveCorp

Nasdaq:IAC
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IAC
Nasdaq
$15B
Market Cap
  1. Home
  2. US
  3. Media
Company description

IAC/InterActiveCorp, together with its subsidiaries, operates as a media and Internet company in the United States and internationally. The last earnings update was 30 days ago. More info.


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  • IAC/InterActiveCorp has significant price volatility in the past 3 months.
IAC Share Price and Events
7 Day Returns
35.8%
NasdaqGS:IAC
5.8%
US Interactive Media and Services
10.5%
US Market
1 Year Returns
-15.5%
NasdaqGS:IAC
-9.4%
US Interactive Media and Services
-11.5%
US Market
IAC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IAC/InterActiveCorp (IAC) 35.8% -12.9% -29% -15.5% 140.9% 163.1%
US Interactive Media and Services 5.8% -16.6% -21.1% -9.4% 17.3% 70%
US Market 10.5% -15.4% -21.4% -11.5% 5.4% 18.1%
1 Year Return vs Industry and Market
  • IAC underperformed the Interactive Media and Services industry which returned -9.4% over the past year.
  • IAC underperformed the Market in United States of America which returned -11.5% over the past year.
Price Volatility
IAC
Industry
5yr Volatility vs Market
Related Companies

IAC Value

 Is IAC/InterActiveCorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IAC/InterActiveCorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for IAC/InterActiveCorp.

NasdaqGS:IAC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:IAC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.029 (1 + (1- 21%) (22.32%))
1.141
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.141 * 5.44%)
7.95%

Discounted Cash Flow Calculation for NasdaqGS:IAC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for IAC/InterActiveCorp is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:IAC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.95%)
2020 744.45 Analyst x9 689.64
2021 1,047.80 Analyst x8 899.18
2022 1,179.50 Analyst x3 937.67
2023 1,593.70 Analyst x1 1,173.67
2024 2,055.90 Analyst x1 1,402.57
2025 2,401.27 Est @ 16.8% 1,517.57
2026 2,696.17 Est @ 12.28% 1,578.49
2027 2,942.03 Est @ 9.12% 1,595.60
2028 3,145.19 Est @ 6.91% 1,580.19
2029 3,313.63 Est @ 5.36% 1,542.24
Present value of next 10 years cash flows $12,916.00
NasdaqGS:IAC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,313.63 × (1 + 1.74%) ÷ (7.95% – 1.74%)
$54,304.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $54,304.04 ÷ (1 + 7.95%)10
$25,274.31
NasdaqGS:IAC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $12,916.00 + $25,274.31
$38,190.31
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $38,190.31 / 84.76
$450.57
NasdaqGS:IAC Discount to Share Price
Calculation Result
Value per share (USD) From above. $450.57
Current discount Discount to share price of $177.57
= -1 x ($177.57 - $450.57) / $450.57
60.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price IAC/InterActiveCorp is available for.
Intrinsic value
>50%
Share price is $177.57 vs Future cash flow value of $450.57
Current Discount Checks
For IAC/InterActiveCorp to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • IAC/InterActiveCorp's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • IAC/InterActiveCorp's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IAC/InterActiveCorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IAC/InterActiveCorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:IAC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $5.12
NasdaqGS:IAC Share Price ** NasdaqGS (2020-03-27) in USD $177.57
United States of America Interactive Media and Services Industry PE Ratio Median Figure of 29 Publicly-Listed Interactive Media and Services Companies 22.39x
United States of America Market PE Ratio Median Figure of 2,939 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IAC/InterActiveCorp.

NasdaqGS:IAC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:IAC Share Price ÷ EPS (both in USD)

= 177.57 ÷ 5.12

34.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAC/InterActiveCorp is overvalued based on earnings compared to the US Interactive Media and Services industry average.
  • IAC/InterActiveCorp is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does IAC/InterActiveCorp's expected growth come at a high price?
Raw Data
NasdaqGS:IAC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
23.5%per year
United States of America Interactive Media and Services Industry PEG Ratio Median Figure of 25 Publicly-Listed Interactive Media and Services Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,005 Publicly-Listed Companies 1x

*Line of best fit is calculated by linear regression .

NasdaqGS:IAC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.7x ÷ 23.5%

1.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAC/InterActiveCorp is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IAC/InterActiveCorp's assets?
Raw Data
NasdaqGS:IAC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $34.58
NasdaqGS:IAC Share Price * NasdaqGS (2020-03-27) in USD $177.57
United States of America Interactive Media and Services Industry PB Ratio Median Figure of 62 Publicly-Listed Interactive Media and Services Companies 1.83x
United States of America Market PB Ratio Median Figure of 5,148 Publicly-Listed Companies 1.26x
NasdaqGS:IAC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:IAC Share Price ÷ Book Value per Share (both in USD)

= 177.57 ÷ 34.58

5.14x

* Primary Listing of IAC/InterActiveCorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAC/InterActiveCorp is overvalued based on assets compared to the US Interactive Media and Services industry average.
X
Value checks
We assess IAC/InterActiveCorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. IAC/InterActiveCorp has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IAC Future Performance

 How is IAC/InterActiveCorp expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IAC/InterActiveCorp expected to grow at an attractive rate?
  • IAC/InterActiveCorp's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • IAC/InterActiveCorp's earnings growth is expected to exceed the United States of America market average.
  • IAC/InterActiveCorp's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:IAC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:IAC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 23.5%
NasdaqGS:IAC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 11.6%
United States of America Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:IAC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:IAC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 8,591 2,167 1,461 4
2023-12-31 7,744 1,796 1,161 4
2022-12-31 6,994 1,497 895 8
2021-12-31 6,112 1,267 655 15
2020-12-31 5,337 920 393 16
2020-03-29
NasdaqGS:IAC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 4,757 938 431
2019-09-30 4,643 1,005 522
2019-06-30 4,501 964 540
2019-03-31 4,374 939 645
2018-12-31 4,263 988 627
2018-09-30 4,109 791 468
2018-06-30 3,833 639 502
2018-03-31 3,541 501 350
2017-12-31 3,307 417 305
2017-09-30 3,168 448 374
2017-06-30 3,103 419 238
2017-03-31 3,082 373 -23

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IAC/InterActiveCorp's earnings are expected to grow significantly at over 20% yearly.
  • IAC/InterActiveCorp's revenue is expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:IAC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from IAC/InterActiveCorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IAC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 17.39 21.39 12.49 3.00
2023-12-31 13.95 16.54 10.20 3.00
2022-12-31 9.87 12.39 7.63 7.00
2021-12-31 7.07 9.13 5.75 13.00
2020-12-31 4.06 5.18 2.85 14.00
2020-03-29
NasdaqGS:IAC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 5.12
2019-09-30 6.22
2019-06-30 6.44
2019-03-31 7.71
2018-12-31 7.52
2018-09-30 5.63
2018-06-30 6.09
2018-03-31 4.30
2017-12-31 3.81
2017-09-30 4.72
2017-06-30 3.01
2017-03-31 -0.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • IAC/InterActiveCorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess IAC/InterActiveCorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IAC/InterActiveCorp has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IAC Past Performance

  How has IAC/InterActiveCorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IAC/InterActiveCorp's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • IAC/InterActiveCorp has delivered over 20% year on year earnings growth in the past 5 years.
  • IAC/InterActiveCorp's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • IAC/InterActiveCorp's 1-year earnings growth is negative, it can't be compared to the US Interactive Media and Services industry average.
Earnings and Revenue History
IAC/InterActiveCorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IAC/InterActiveCorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IAC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 4,757.06 431.13 2,476.89 343.49
2019-09-30 4,643.48 522.46 2,454.23 324.42
2019-06-30 4,501.20 539.69 2,360.69 316.09
2019-03-31 4,373.66 644.57 2,281.30 313.25
2018-12-31 4,262.89 626.96 2,175.36 309.33
2018-09-30 4,109.37 468.01 2,079.72 285.39
2018-06-30 3,833.22 501.88 2,135.47 278.29
2018-03-31 3,541.48 349.80 2,048.74 258.28
2017-12-31 3,307.24 304.92 2,014.28 250.88
2017-09-30 3,167.82 374.17 1,954.24 230.93
2017-06-30 3,103.48 237.69 1,787.38 209.89
2017-03-31 3,081.54 -23.35 1,754.06 207.23
2016-12-31 3,139.88 -41.28 1,772.09 211.57
2016-09-30 3,177.45 -175.21 1,816.45 204.71
2016-06-30 3,251.91 -152.78 1,878.50 201.96
2016-03-31 3,277.60 101.46 1,905.40 195.63
2015-12-31 3,230.93 119.47 1,878.11 196.62
2015-09-30 3,212.96 220.88 1,855.70 180.71
2015-06-30 3,156.63 306.37 1,777.09 174.54
2015-03-31 3,141.81 229.78 1,694.94 166.96
2014-12-31 3,109.55 240.20 1,604.39 160.52
2014-09-30 3,003.25 247.55 1,506.35 153.71
2014-06-30 2,977.89 189.49 1,426.19 148.25
2014-03-31 3,020.99 265.98 1,390.74 143.46
2013-12-31 3,022.99 283.86 1,360.57 139.76
2013-09-30 3,063.78 250.17 1,340.31 139.46
2013-06-30 3,021.38 203.49 1,349.08 131.82
2013-03-31 2,902.58 192.10 1,299.19 129.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • IAC/InterActiveCorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IAC/InterActiveCorp used its assets more efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.
  • IAC/InterActiveCorp has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IAC/InterActiveCorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IAC/InterActiveCorp has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IAC Health

 How is IAC/InterActiveCorp's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IAC/InterActiveCorp's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IAC/InterActiveCorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IAC/InterActiveCorp's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of IAC/InterActiveCorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IAC/InterActiveCorp Company Filings, last reported 2 months ago.

NasdaqGS:IAC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,942.85 3,135.32 3,159.29
2019-09-30 3,883.06 3,125.63 3,103.35
2019-06-30 3,924.10 3,152.28 3,313.71
2019-03-31 3,643.25 2,345.98 2,257.74
2018-12-31 3,617.49 2,259.30 2,255.30
2018-09-30 3,398.12 1,997.74 1,879.54
2018-06-30 3,312.67 1,996.02 1,765.24
2018-03-31 3,129.49 1,994.70 1,663.17
2017-12-31 2,989.69 1,993.22 1,635.80
2017-09-30 2,949.68 1,649.27 1,255.32
2017-06-30 2,212.51 1,572.99 1,537.28
2017-03-31 2,043.99 1,576.98 1,431.03
2016-12-31 2,043.50 1,602.48 1,418.53
2016-09-30 2,001.36 1,641.29 1,367.65
2016-06-30 1,937.35 1,705.26 1,325.19
2016-03-31 2,154.64 1,725.87 1,432.48
2015-12-31 2,246.22 1,766.95 1,520.65
2015-09-30 1,870.42 1,000.00 820.39
2015-06-30 1,843.56 1,080.00 889.93
2015-03-31 1,781.01 1,080.00 877.22
2014-12-31 2,033.57 1,080.00 1,151.05
2014-09-30 2,010.74 1,080.00 1,050.76
2014-06-30 1,698.96 1,080.00 1,068.94
2014-03-31 1,737.11 1,080.00 1,042.85
2013-12-31 1,772.26 1,080.00 1,106.45
2013-09-30 1,820.78 580.00 767.99
2013-06-30 1,746.68 580.00 686.50
2013-03-31 1,745.74 580.00 679.57
  • IAC/InterActiveCorp's level of debt (79.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.2% vs 79.5% today).
  • Debt is well covered by operating cash flow (29.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).
X
Financial health checks
We assess IAC/InterActiveCorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IAC/InterActiveCorp has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IAC Dividends

 What is IAC/InterActiveCorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from IAC/InterActiveCorp dividends. Estimated to be 0% next year.
If you bought $2,000 of IAC/InterActiveCorp shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate IAC/InterActiveCorp's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate IAC/InterActiveCorp's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:IAC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Global Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 45 Stocks 0.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1949 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:IAC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 3.00
2021-12-31 0.00 5.00
2020-12-31 0.00 5.00
2020-03-29
NasdaqGS:IAC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2017-11-09 0.000 0.000
2017-11-08 0.000 0.000
2017-08-04 0.000 0.000
2017-08-02 0.000 0.000
2017-05-08 0.000 0.000
2017-05-03 0.000 0.000
2017-02-28 0.000 0.000
2017-02-01 0.000 0.000
2016-11-09 0.000 0.000
2016-11-02 0.000 0.000
2016-08-09 0.000 0.000
2016-07-27 0.000 0.000
2016-05-10 0.000 0.000
2016-05-04 0.000 0.000
2016-02-29 0.000 0.000
2016-02-02 0.000 0.000
2015-11-09 1.360 2.313
2015-10-26 1.360 2.055
2015-07-31 1.360 1.931
2015-07-28 1.360 1.740
2015-02-03 1.360 1.881
2014-10-29 1.360 2.149
2014-07-30 1.360 2.068
2014-05-02 0.960 1.448
2014-04-30 0.960 1.466
2014-02-26 0.960 1.335
2014-02-05 0.960 1.381
2013-11-08 0.960 1.517
2013-10-29 0.960 1.746
2013-08-08 0.960 1.816
2013-07-30 0.960 1.902
2013-05-08 0.960 1.934
2013-04-30 0.960 1.991
2012-10-24 0.960 2.185
2012-07-25 0.960 1.830
2012-02-01 0.480 1.022
2011-11-03 0.480 1.149

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as IAC/InterActiveCorp has not reported any payouts.
  • Unable to verify if IAC/InterActiveCorp's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of IAC/InterActiveCorp's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as IAC/InterActiveCorp has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of IAC/InterActiveCorp's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess IAC/InterActiveCorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IAC/InterActiveCorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IAC/InterActiveCorp has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IAC Management

 What is the CEO of IAC/InterActiveCorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joey Levin
COMPENSATION $6,315,554
AGE 40
TENURE AS CEO 4.8 years
CEO Bio

Mr. Joseph M. Levin, also known as Joey, has been Chairman of the Board (in an non-executive capacity) of Match Group since December 2017. Mr. Levin has been Chairman and Director at HomeAdvisor Inc. and ANGI Homeservices Inc. since September 29, 2017. He has been the Chairman of Match Group, Inc. since December 06, 2017. He has been the Chief Executive Officer of IAC/InterActiveCorp since June 2015. Mr. Levin has been Chief Executive Officer of IAC Search & Applications at IAC/InterActiveCorp, overseeing the desktop software, mobile applications and media properties that comprised IAC’s former Search & Applications segment, from January 2012. He served as an Interim Chief Executive Officer at Vimeo, LLC until July 2017. He served as Chief Executive Officer at IAC Applications, Inc. From November 2009 to January 2012, Mr. Levin served as the Chief Executive Officer of Mindspark Interactive Network, Inc. (now known as IAC Applications, Inc.). He served as the Chief Executive Officer and President of APN, LLC. He served as a Senior Vice President of Mergers and Acquisitions (M&A) and Finance at IAC/InterActiveCorp from February 2008 to November 2009 and was responsible to oversaw all Financial Planning activities within it. He served as a Vice President of Finance at IAC. Since joining IAC in 2003, he worked on a number of transactions for it including the acquisitions of ServiceMagic and People Media and the spin-offs completed in 2008. In his years at IAC, Mr. Levin worked in Strategic Planning, M&A and Finance. Prior to joining IAC, Mr. Levin worked in the Technology Mergers & Acquisitions group for Credit Suisse (formerly, Credit Suisse First Boston) in San Francisco. He served as an Analyst of Mergers and Acquisitions at Credit Suisse from July 2001 to March 2003. He serves as Director of Turo Inc. He has been a Director of Match Group, Inc. since October 2015 and IAC/InterActiveCorp since June 2015. He served as Director of Groupon, Inc. since March 13, 2017 until 2019. He served as a Director of Points International Ltd. since February 2008. He served on the board of Points.com. The Active Network, a provider of online registration software and event management software, beginning prior to its 2011 initial public offering through its sale in December 2013. He served as a Director of Active Network, LLC since February 2008 until December 2013. He served as a Director of LendingTree, Inc. since August 2008 to November 2014. He served as a Director of Merchant Circle until 2011. Mr. Levin earned both a B.S. in Economics and a B.A.S. in Engineering from the University of Pennsylvania. Mr. Levin is Undergraduate Executive Board of Wharton School. Mr. Levin has substantial e-commerce and technology industry experience.

CEO Compensation
  • Joey's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Joey's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the IAC/InterActiveCorp management team in years:

6.4
Average Tenure
49
Average Age
  • The average tenure for the IAC/InterActiveCorp management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Barry Diller

TITLE
Chairman & Senior Executive
COMPENSATION
$4M
AGE
77
TENURE
9.3 yrs

Joey Levin

TITLE
CEO & Director
COMPENSATION
$6M
AGE
40
TENURE
4.8 yrs

Glenn Schiffman

TITLE
Executive VP & CFO
COMPENSATION
$9M
AGE
49
TENURE
3.9 yrs

Gregg Winiarski

TITLE
Executive VP
COMPENSATION
$3M
AGE
48
TENURE
15 yrs

Mark Stein

TITLE
Executive VP & Chief Strategy Officer
COMPENSATION
$3M
AGE
51
TENURE
4.5 yrs

Michael Schwerdtman

TITLE
Senior VP

Mark Schneider

TITLE
Senior Vice President of Finance & Investor Relations
TENURE
6.2 yrs

Joanne Hawkins

TITLE
Senior VP & Deputy General Counsel
AGE
58
TENURE
14.5 yrs

Nick Stoumpas

TITLE
Senior VP & Treasurer

Alex Lubot

TITLE
Head of Dating Services for Europe Operations
AGE
46
TENURE
6.7 yrs
Board of Directors Tenure

Average tenure and age of the IAC/InterActiveCorp board of directors in years:

11
Average Tenure
64
Average Age
  • The average tenure for the IAC/InterActiveCorp board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Joey Levin

TITLE
CEO & Director
COMPENSATION
$6M
AGE
40
TENURE
4.8 yrs

Victor Kaufman

TITLE
Vice Chairman of the Board
COMPENSATION
$564K
AGE
75
TENURE
20.4 yrs

Barry Diller

TITLE
Chairman & Senior Executive
COMPENSATION
$4M
AGE
77
TENURE
9.3 yrs

Alan Spoon

TITLE
Independent Director
COMPENSATION
$330K
AGE
68
TENURE
17 yrs

Bonnie Hammer

TITLE
Independent Director
COMPENSATION
$325K
AGE
68
TENURE
5.5 yrs

Bryan Lourd

TITLE
Independent Director
COMPENSATION
$310K
AGE
58
TENURE
14.9 yrs

Alex Von Furstenberg

TITLE
Director
COMPENSATION
$300K
AGE
49
TENURE
11.3 yrs

David Rosenblatt

TITLE
Independent Director
COMPENSATION
$305K
AGE
51
TENURE
11.3 yrs

Rich Zannino

TITLE
Independent Director
COMPENSATION
$310K
AGE
60
TENURE
10.8 yrs

Michael Eisner

TITLE
Independent Director
COMPENSATION
$300K
AGE
77
TENURE
9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess IAC/InterActiveCorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IAC/InterActiveCorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IAC News

Simply Wall St News

Is IAC/InterActiveCorp's (NASDAQ:IAC) 17% ROE Better Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for IAC/InterActiveCorp: 17% = US$540m ÷ US$3.9b (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining IAC/InterActiveCorp's Debt And Its 17% Return On Equity Although IAC/InterActiveCorp does use debt, its debt to equity ratio of 0.80 is still low. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

Here’s What IAC/InterActiveCorp’s (NASDAQ:IAC) Return On Capital Can Tell Us

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for IAC/InterActiveCorp: 0.087 = US$641m ÷ (US$8.3b - US$953m) (Based on the trailing twelve months to June 2019.) Therefore, IAC/InterActiveCorp has an ROCE of 8.7%. … What Are Current Liabilities, And How Do They Affect IAC/InterActiveCorp's ROCE? … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

An Intrinsic Calculation For IAC/InterActiveCorp (NASDAQ:IAC) Suggests It's 44% Undervalued

In this article we are going to estimate the intrinsic value of IAC/InterActiveCorp (NASDAQ:IAC) by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $989.5m $1.2b $1.5b $1.9b $2.2b $2.4b $2.6b $2.8b $3.0b $3.1b Growth Rate Estimate Source Analyst x8 Analyst x4 Analyst x1 Analyst x1 Est @ 15.51% Est @ 11.68% Est @ 8.99% Est @ 7.11% Est @ 5.8% Est @ 4.88% Present Value ($, Millions) Discounted @ 9.04% $907.5 $1.0k $1.2k $1.3k $1.4k $1.4k $1.4k $1.4k $1.4k $1.3k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $12.7b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$3.1b × (1 + 2.7%) ÷ (9% – 2.7%) = US$51b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$51b ÷ ( 1 + 9%)10 = $21.30b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $34.01b.

Simply Wall St -

Is It Too Late To Buy IAC/InterActiveCorp (NASDAQ:IAC) At Its July Price?

IAC/InterActiveCorp (NASDAQ:IAC) is considered a high-growth stock, but its last closing price of $244.38 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … IAC/InterActiveCorp is poised for extremely high earnings growth in the near future. … This tells us that IAC/InterActiveCorp is overvalued compared to the US market average ratio of 17.96x , and overvalued based on current earnings compared to the Interactive Media and Services industry average of 28.75x.

Simply Wall St -

Have Insiders Been Selling IAC/InterActiveCorp (NASDAQ:IAC) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in IAC/InterActiveCorp (NASDAQ:IAC). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for IAC/InterActiveCorp IAC/InterActiveCorp Insider Transactions Over The Last Year The Independent Director, David Rosenblatt, made the biggest insider sale in the last 12 months. … While we feel good about high insider ownership of IAC/InterActiveCorp, we can't say the same about the selling of shares.

Simply Wall St -

What Does IAC/InterActiveCorp's (NASDAQ:IAC) Share Price Indicate?

This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

Simply Wall St -

IAC/InterActiveCorp (NASDAQ:IAC): The Best Of Both Worlds

IAC is a financially-healthy company with an impressive track record and an optimistic future outlook. … Outstanding track record with reasonable growth potential Over the past year, IAC has grown its earnings by 84%, with its most recent figure exceeding its annual average over the past five years. … NasdaqGS:IAC Past and Future Earnings, June 26th 2019 IAC's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health.

Simply Wall St -

Consider These Factors, Then Buy IAC/InterActiveCorp (NASDAQ:IAC)

The risk of investing in the stock market is a systematic crash. … This is the best time to buy stocks like IAC/InterActiveCorp at a discount. … The intrinsic value infographic in our free research report helps visualize whether IAC is currently mispriced by the market.

Simply Wall St -

Does IAC/InterActiveCorp's (NASDAQ:IAC) CEO Pay Matter?

When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$12m. … This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. … IAC/InterActiveCorp is currently paying its CEO below what is normal for large companies.

Simply Wall St -

A Closer Look At IAC/InterActiveCorp's (NASDAQ:IAC) Impressive ROE

One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.21 in profit. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for IAC/InterActiveCorp: 21% = US$645m ÷ US$3.6b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … IAC/InterActiveCorp's Debt And Its 21% ROE Although IAC/InterActiveCorp does use debt, its debt to equity ratio of 0.70 is still low.

Simply Wall St -

IAC Company Info

Description

IAC/InterActiveCorp, together with its subsidiaries, operates as a media and Internet company in the United States and internationally. The company’s Match Group segment provides subscription dating products under the Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, Pairs and Hinge, and other brands. Its ANGI Homeservices segment connects homeowners to home service professionals, collects reviews, and allows homeowners to research, match, and connect on-demand to network of service professionals online, through mobile apps, or by voice assistants under the HomeAdvisor, Angie’s List, and Handy brand names. The company’s Vimeo segment operates a video platform for professionals, marketers, and enterprises to connect with audiences, customers, and employees; provides cloud-based software products to stream, host, distribute, and monetize videos online and across devices, as well as video tools on a subscription basis; and sells live streaming accessories. Its Dotdash segment offers a portfolio of digital brands providing information and inspiration in various vertical content categories. The company’s Applications segment owns and operates a portfolio of desktop browser applications that provide users with access to various online content, tools, and services; develops, distributes, and offers a suite of Slimware desktop-support software and services. This segment also offers subscription-based mobile applications. Its Emerging & Other segment operates a collection of Websites, which offers general search services and information; on-demand staffing platform that connect workers for warehouse, delivery and moving, data entry, and customer service; operates news, commentary, culture, and entertainment Website; and offers digital content, as well as production and producer services for feature films. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.

Details
Name: IAC/InterActiveCorp
IAC
Exchange: NasdaqGS
Founded: 1986
$15,050,769,274
84,759,640
Website: http://www.iac.com
Address: IAC/InterActiveCorp
555 West 18th Street,
New York,
New York, 10011,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS IAC Common Stock Nasdaq Global Select US USD 29. Dec 1992
DB HNIB Common Stock Deutsche Boerse AG DE EUR 29. Dec 1992
XTRA HNIA Common Stock XETRA Trading Platform DE EUR 29. Dec 1992
LSE 0J7Q Common Stock London Stock Exchange GB USD 29. Dec 1992
BRSE HNIB Common Stock Berne Stock Exchange CH CHF 29. Dec 1992
Number of employees
Current staff
Staff numbers
8,700
IAC/InterActiveCorp employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/29 01:03
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/19
Last earnings filing: 2020/02/28
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.