IAC InterActive Corp. (IAC) Fundamental Analysis: Bull vs. Bear Case

IAC

IAC InterActive Corp.

Fundamental data last updated:October 20, 2026

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company profile

SECTOR

Technology

industry

Internet Content & Information

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

IAC/InterActiveCorp operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC HOLDINGS, INC. IAC/InterActiveCorp is headquartered in New York, New York.

VALUATION

P/E

29.92 Market Cap ($M USD)

$3.34B

Forward P/E

30.03 PEG

-81.62

PRICE TO SALES

1.49 PRICE TO BOOK

0.77 EV / EBITDA

9.12 5-Year Average P/E

Free Cash Flow Yield

1.78%

DCF Value

$18.88

Graham Number

$44.52

Price to FCF

56.07 EV to FCF

61.24 Earnings Yield

3.34%

FCF Yield

1.78%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.50

Next Year EPS Growth Estimate

$1.50

Next Year Revenue Growth Estimate

$1.97B

Return on Equity (ROE)

2.46%

FREE CASH FLOW

Operating Margin

1.52%

Debt-to-Equity

0.30 Piotroski F-Score

7 Altman Z-Score

1.40 Return on Invested Capital (ROIC)

0.53%

Current Ratio

3.69 Quick Ratio

3.69 Net Debt to EBITDA

0.77 Interest Coverage

0.29 Gross Profit margin

64.57%

FCF PER SHARE

$0.77

REVENUE PER SHARE

$28.95

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing IAC InterActive Corp. significantly. With a DCF value far below the recent pricing, the stock appears extended. The Forward P/E of 29.44 suggests optimism, yet the Earnings Yield of just 3.20% and an Altman Z-score of 1.40 raise red flags about financial stability and growth potential. The Graham Number also indicates overvaluation, hinting that the market’s expectations might be overly ambitious given the company’s current fundamentals.

AI Exposure / Tech Reliance

Operating in the Internet Content & Information industry, IAC is well-positioned to leverage AI advancements. Its sector is inherently adaptable to tech shifts, allowing for potential innovation in content delivery and user engagement. This adaptability is crucial for maintaining relevance in a rapidly evolving digital landscape.

The Bull Case

For the discerning GARP investor, IAC offers intriguing prospects. A Piotroski F-Score of 7 indicates solid financial health, while a robust Current Ratio of 3.69 suggests liquidity strength. Despite a modest ROIC of 0.53%, the company's impressive Gross Profit Margin of 64.57% hints at strong pricing power. These factors, combined with a reasonable Debt/Equity ratio, suggest efficient capital management and potential for long-term value creation.

The Bear Case

However, the bear case is compelling. The PEG Forward ratio of 4.73 is alarmingly high, signaling potential overvaluation relative to growth expectations. With a Price to FCF of 54.98, the stock is expensive, especially given the low FCF Yield of 1.82%. Additionally, trading close to its 52-week high, the stock appears technically overextended, raising concerns about its sustainability at these levels.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$51.33

Institutional Ownership %

1-Year Beta

1.07 Insider Buying % (6 Mo)

Distance to 52-Week High

1.96%

Distance to 52-Week Low

34.22%

EARNINGS SURPRISE %

85.29%

50-DAY SMA

$41.72

200-DAY SMA

$37.53

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.