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IAC (IAC) has drawn fresh attention after a period of mixed share performance, with a loss of about 13% over the past month but a gain in the past 3 months.
At a last close of US$34.31, investors are weighing this media and internet group’s modest reported annual revenue growth of 0.2% against net income trends that currently reflect a loss of US$119.3 million and annual net income growth of about 49.9%.
See our latest analysis for IAC.
That recent 13.2% 1 month share price decline, alongside a weaker year to date share price return of 12.1% and a 5 year total shareholder return of 76.1%, points to fading momentum after a short 3 month recovery.
If this shift in sentiment has you reassessing where you look for growth, it could be a good moment to widen your search with our screen of 23 top founder-led companies.
With the share price down 12.1% year to date and a reported loss of US$119.3 million against modest revenue growth, has IAC fallen below what it is worth, or is the market already baking in any future recovery?
With the narrative fair value of about $45.62 sitting well above IAC’s last close at $34.31, the current setup focuses squarely on how its digital assets and cost actions could support that gap.
IAC’s People Inc. (formerly Dotdash Meredith) is successfully reducing its reliance on Google search traffic by expanding and diversifying into off platform channels (e.g., Apple News, YouTube, TikTok) and leveraging first party data for broader ad targeting. This positions the company to capture more ad dollars as budgets continue to shift from traditional to digital, supporting higher and more sustainable digital revenue growth and incremental margin expansion.
Curious what kind of revenue reset, margin lift, and profit multiple are baked into that fair value? The narrative rests on a sharp swing from losses to profits and a future valuation usually reserved for fast growing digital names, plus meaningful capital returns. The exact assumptions might surprise you.
Result: Fair Value of $45.62 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this hinges on IAC keeping Google driven traffic resilient and avoiding missteps at key brands such as People Inc. and Care.com that could pressure margins.
