IAC (IAC): Assessing Valuation After Q3 Earnings Improvement and Share Buyback Update

IAC (IAC) just released its third quarter results along with an update on its buyback program. The company managed to significantly narrow its net loss from last year, even as sales declined and share repurchases continued.

See our latest analysis for IAC.

Following its earnings and buyback update, IAC's share price has shown some short-term energy with a 4% gain over the past week, but the momentum hasn't translated into a turnaround so far. The year-to-date share price return is still down 22.5%, and total shareholder return for the past year stands at -24.8%. Despite recent corporate actions, the long-term trend remains challenging, though investors seem to be watching for signals of improved execution or strategic shifts.

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With shares trading below analyst price targets after steep multi-year declines, the question now is whether IAC’s recent progress reveals untapped value or if the market already reflects the challenges and leaves little room for upside.

Most Popular Narrative: 31.8% Undervalued

Compared to IAC’s last close of $33.01, the most widely followed narrative assigns a fair value that is over 30% higher, framing the current discount as an opportunity if key future metrics are met. This setup brings skepticism about recent trading into contrast with a roadmap for renewed value, unlocked by disciplined capital moves and digital growth.

The analysts have a consensus price target of $48.692 for IAC based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $60.0, and the most bearish reporting a price target of just $39.0.

Read the complete narrative.

Want to see what’s driving this big upside? Hint: The narrative is anchored by aggressive assumptions for future profit margins, revenue mix, and a valuation multiple that would surprise most analysts. Which numbers unlock this price target? Find out in the full breakdown. These projections will leave you rethinking what’s possible for IAC.

Result: Fair Value of $48.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent declines in key search-driven traffic and underperformance from major portfolio brands could weaken the optimistic scenario outlined by analysts.

Find out about the key risks to this IAC narrative.

Build Your Own IAC Narrative

If you want to challenge these assumptions or dig deeper into IAC's numbers, you can build your own view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding IAC.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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