Pitch: Significantly misvalued long-term value creator. Compounded at 15.3% vs 10.4% for S&P. Mispriced due to orphaned asset status following recent spin-offs of MTCH and VMEO and the resulting obscure financials. Stub assets are worth multiples more than their implied market value. With a proven capital allocator Barry Diller at the wheel for 25 years, IAC is well-positioned to continue its success of growing and spinning-off undervalued assets.
Valuation: Excluding IAC cash and equity stakes in ANGI and MGM, the stub currently trades at $2.5bn in implied equity value. Stub assets could be worth as much as $9.5bn – 4x their implied value or 80% upside to IAC stock in total, without assuming any upside in ANGI or MGM.
Exp. gain: 80% to $180/share.
Full IAC write-up (free guest account required):