Discover the untapped potential of this internet and media holding company
- IAC is an undervalued stock with a sum-of-the-parts story
- IAC’s market cap doesn’t reflect the value of its assets
- IAC’s biggest asset is a 20% stake in MGM Resorts International
- IAC also owns an 84% stake in the home services company Angi
- IAC’s Dotdash Meredith unit is expected to generate up to $300 million in adjusted Ebitda
- IAC has invested in Turo, which could be worth $2 billion or more
- The sum-of-the-parts value of IAC is estimated to be $5.9 billion
- Analyst Thomas Champion values IAC at $68 a share, 20% above its current level
IAC, the internet and media holding company, is an undervalued stock with a sum-of-the-parts story. Despite its market cap not reflecting the value of its assets, IAC holds significant stakes in MGM Resorts International and Angi. Its Dotdash Meredith unit is expected to generate substantial earnings, and its investment in Turo could be worth billions. The sum-of-the-parts value of IAC is estimated to be $5.9 billion, with analyst Thomas Champion valuing the stock at $68 a share, 20% above its current level.
Factuality Level: 6
Factuality Justification: The article provides information about the valuation of IAC and its various assets. It includes examples of using a sum-of-the-parts strategy to value public companies, but also acknowledges that this approach doesn’t always work. The article presents the opinions of analysts and provides estimates of the value of IAC’s assets. While the information seems to be based on factual data and analysis, it is important to note that these are estimates and projections, which may not be entirely accurate.
Noise Level: 3
Noise Justification: The article contains some relevant information about the valuation of public companies using a sum-of-the-parts strategy. However, it also includes unnecessary information about the author’s previous articles and unrelated examples. The article lacks scientific rigor and intellectual honesty as it relies heavily on the author’s opinions and speculations rather than providing concrete evidence or data to support the claims. Overall, the article is filled with filler content and does not provide actionable insights or new knowledge.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the undervaluation of IAC, an internet and media holding company. This could potentially impact the stock market and investors interested in IAC.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not mention any extreme events or their impact.
Public Companies: Amazon.com (AMZN), SoftBank Group (9984.T), Arm Holdings (ARMH), MGM Resorts International (MGM), Angi (ANGI), Dotdash Meredith (IAC), Expedia (EXPE), Tripadvisor (TRIP), Match Group (MTCH), Ticketmaster (LYV), Vimeo (VMEO), Turo (Turo), Care.com (CRCM)
Key People: Barry Diller (Movie Mogul and Founder of IAC), Joey Levin (CEO of IAC), Thomas Champion (Piper Sandler Analyst)
Reported publicly:
www.marketwatch.com 
