IACI 29march2015 Report

March 29, 2015
NASDAQ: IACI
IAC/INTERACTIVECORP
BUY
A+
A-
HOLD
B+
Annual Dividend Rate

$1.36
B-
C+
Annual Dividend Yield

2.05%
SELL
C-
STOCK PERFORMANCE (%)

3 Mo.
Price Change
6.30
Beta
0.63
Sector: Technology
IACI BUSINESS DESCRIPTION
IAC/InterActiveCorp operates as a media and
Internet company in the United States and
internationally. It operates through four segments:
The Match Group, Search & Applications, Media,
and eCommerce.
D+
D-
E+
E-
Market Capitalization
$5.2 Billion
Sub-Industry: Internet Software & Services
Weekly Price: (US$)
SMA (50)
BUY
52-Week Range
$56.50-$73.93
RATING SINCE
TARGET PRICE
04/27/2011
$76.58
Price as of 3/26/2015
$66.30
Source: S&P
SMA (100)
1 Year
2 Years
80
TARGET
TARGET
TARGETPRICE
PRICE$76.58
$76.58
PRICE
$76.58
TARGET
75
70
65
60
1 Yr.
-7.90
3 Yr (Ann)
9.37
55
50
GROWTH (%)
Last Qtr
14.67
-8.77
-11.37
12 Mo.
2.86
45.17
-17.74
3 Yr CAGR
14.72
33.53
12.68
RETURN ON EQUITY (%)

IACI
Q4 2014
12.05
Q4 2013
16.82
Q4 2012
10.16
Ind Avg
11.96
14.38
14.85
S&P 500
14.59
13.97
13.23
Revenues
Net Income
EPS
45
40
Rating History
BUY
Volume in Millions
20
10
2013
2014
2015
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
P/E COMPARISON
RECOMMENDATION
We rate IAC/INTERACTIVECORP (IACI) a BUY. This is driven by multiple strengths, which we believe should
have a greater impact than any weaknesses, and should give investors a better performance opportunity than
most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth,
reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid
financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact
that the company has had sub par growth in net income.
24.65
81.08
19.41
IACI
Ind Avg
S&P 500
HIGHLIGHTS
Despite its growing revenue, the company underperformed as compared with the industry average of 18.6%.
Since the same quarter one year prior, revenues rose by 14.7%. This growth in revenue does not appear to
have trickled down to the company's bottom line, displayed by a decline in earnings per share.
EPS ANALYSIS ($)
2013
Q4 0.78
Q3 1.70
Q1 0.42
Q2 -0.21
Q4 0.88
Q3 1.08
Q1 0.62
Q2 0.69
Q3 0.49
2012
Q4 0.46
Q2 0.52
Q1 0.34
Net operating cash flow has significantly increased by 57.04% to $129.56 million when compared to the same
quarter last year. The firm also exceeded the industry average cash flow growth rate of 26.57%.
2014
NA = not available NM = not meaningful
The gross profit margin for IAC/INTERACTIVECORP is currently very high, coming in at 71.29%. It has
increased from the same quarter the previous year. Despite the strong results of the gross profit margin,
IACI's net profit margin of 8.44% significantly trails the industry average.
Despite currently having a low debt-to-equity ratio of 0.54, it is higher than that of the industry average,
inferring that management of debt levels may need to be evaluated further. Despite the fact that IACI's
debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.06 is high and demonstrates strong
liquidity.
1 Compustat fiscal year convention is used for all fundamental

data items.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: March 29, 2015
PAGE 1
March 29, 2015

NASDAQ: IACI
IAC/INTERACTIVECORP
Sector: Technology Internet Software & Services Source: S&P
$1.36

2.05%
PEER GROUP ANALYSIS
120%
$5.2 Billion
52-Week Range
$56.50-$73.93
$66.30
INDUSTRY ANALYSIS
The US internet software and services industry includes companies that develop and market internet
software and provide services such as online databases, interactive services, web address registration,
database construction, and website design. The industry is highly competitive and characterized by rapid
technological changes, evolving industry standards, and frequent new product and service developments.
The industry includes about 4,000 companies, with combined annual revenue of approximately $30 billion.
Google (GOOG), eBay (EBAY), and Yahoo (YHOO) are major players.
REVENUE GROWTH AND EBITDA MARGIN*
V
FA
QIHU
Beta
0.63
AB
OR
LE
Over the past decade, consumers have embraced the online channel to purchase goods and services. The
number of worldwide consumers becoming more comfortable in using the internet to purchase goods or
services is expected to continue to grow. Increasing online availability of services and declines in broadband
tariffs and associated hardware prices will continue to drive robust growth.
UN
AWAY
R
VO
FA
RAX
AOL IACI
0%
There is an on-going trend toward industry consolidation as leading companies seek access to new
technology and customer bases developed by recent start-ups in order to increase market share. Recent
acquisitions by large and well-capitalized technology companies have altered the competitive landscape.
Profitability of individual companies depends largely on volume and efficient operations and small companies
compete by serving niche segments or by providing technical expertise.
CSGP
LE
AB
Revenue Growth (TTM)
Z YELP
JCOM
MELI
VRSN
10%
70%
EBITDA Margin (TTM)

Companies with higher EBITDA margins and
revenue growth rates are outperforming companies
with lower EBITDA margins and revenue growth
rates. Companies for this scatter plot have a market
capitalization between $2.9 Billion and $7.6 Billion.
Companies with NA or NM values do not appear.
*EBITDA Earnings Before Interest, Taxes, Depreciation and
Amortization.
The industry is highly competitive, particularly in the advertising segment. This competition has intensified as
a result of consolidation and low entry barriers, which has caused price reductions for advertising space,
implying a drop in margins. Another challenge facing the industry is related to secure transmission of
personal information over public networks. These networks are vulnerable to unauthorized access by
hackers and computer viruses. Allowing unauthorized access to users information subjects a company to
reputational, financial, and legal risks.
Looking forward, companies success will depend on their ability to adopt rapidly evolving technologies, alter
services to meet industry standards, and improve the performance and reliability of services. Investment in
research and development will continue to be an integral part of company and industry success.
120%
REVENUE GROWTH AND EARNINGS YIELD

PEER GROUP: Internet Software & Services
V
FA
QIHU
AB
OR
LE
UN
YELP
LE
AB
0%
CSGP
AWAY
R
VO
FA
Revenue Growth (TTM)
MELI
-2%
RAX
VRSN
JCOM
IACI
AOL
5%
Earnings Yield (TTM)
Ticker
IACI
VRSN
RAX
CSGP
MELI
Z
QIHU
JCOM
AOL
YELP
AWAY
Recent
Company Name
Price ($)
IAC/INTERACTIVECORP
66.30
VERISIGN INC
64.92
RACKSPACE HOSTING INC
51.39
COSTAR GROUP INC
189.14
MERCADOLIBRE INC
121.41
ZILLOW GROUP INC
101.28
QIHOO 360 TECHNOLGY CO -ADR 53.00
J2 GLOBAL INC
66.90
AOL INC
38.91
YELP INC
45.71
HOMEAWAY INC
30.52
Market
Cap ($M)
5,195
7,588
7,271
6,111
5,361
5,206
4,739
3,227
3,051
2,966
2,885
Price/
Earnings
24.65
25.76
65.88
130.44
74.48
NM
30.99
25.83
25.43
97.26
218.00
Net Sales
TTM ($M)
3,109.55
1,010.12
1,794.36
575.94
556.54
325.89
1,390.66
599.03
2,527.20
377.54
446.76
Net Income
TTM ($M)
414.87
355.26
110.55
44.87
72.58
-43.61
222.77
125.33
125.60
36.47
13.38
The peer group comparison is based on Major Internet Software & Services companies of comparable size.
Companies that exhibit both a high earnings yield

and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between 2.9% and
107.2%. Companies with NA or NM values do not
appear.
PAGE 2
March 29, 2015

NASDAQ: IACI
IAC/INTERACTIVECORP
$1.36

2.05%
COMPANY DESCRIPTION
IAC/InterActiveCorp operates as a media and Internet
company in the United States and internationally. It
operates through four segments: The Match Group,
Search & Applications, Media, and eCommerce. The
Match Group segment provides subscription-based and
ad-supported online personals services through its
Websites and applications. This segment also operates
The Princeton Review that offers college and graduate
school admissions test preparation and college readiness
services; Tutor.com, which offers various live,
one-on-one, and on-demand tutoring services; and Daily
Burn, a health and fitness property that provides
streaming fitness and workout videos in various
platforms. The Search & Applications segment operates
various Websites to offer search services, and content
and other services comprising Ask.com, About.com,
CityGrid, Dictionary.com, Investopedia, PriceRunner, and
Ask.fm; and develops, markets, and distributes various
downloadable applications, which provide users the
ability to access search services. The Media segment
offers Vimeo, a video sharing platform that provides
video creators tools to share, distribute, and monetize
content online, as well as offers viewers a clutter-free
environment to watch content in various
Internet-enabled devices; and The Daily Beast, a
Website dedicated to news, commentary, culture, and
entertainment. This segment also provides Electus, an
integrated multimedia entertainment studio to produce
video content for distribution, as well as operates
Electus Digital, which consists of various Websites and
properties. The eCommerce segment offers
HomeAdvisor, an online marketplace for matching
consumers with home services professionals; and
operates Shoebuy, an Internet retailer of footwear and
related apparel and accessories. The company, formerly
known as InterActiveCorp, was founded in 1986 and is
headquartered in New York, New York.
IAC/INTERACTIVECORP
555 West 18th Street
New York, NY 10011
USA
Phone: 212-314-7300
http://www.iac.com
Beta
0.63
$5.2 Billion
52-Week Range
$56.50-$73.93
$66.30
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of IACI shares. It is provided in order to give you a deeper understanding of our
rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stocks
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR
SCORE
3.5
Growth
out of 5 stars
weak
Measures the growth of both the company's income statement and
cash flow. On this factor, IACI has a growth score better than 60% of
the stocks we rate.
strong
3.5
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 60% of the companies we
cover.
strong
4.0
Efficiency
out of 5 stars
weak
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 70% of the companies we review.
strong
3.0
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is less volatile than 50% of the stocks we monitor.
strong
4.5
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 80% of the companies we analyze.
strong
4.0
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. The company's
dividend is higher than 70% of the companies we track.
strong
THESTREET RATINGS RESEARCH METHODOLOGY

TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
PAGE 3
March 29, 2015

NASDAQ: IACI
IAC/INTERACTIVECORP
$1.36

2.05%
Consensus EPS Estimates ($)

IBES consensus estimates are provided by Thomson Financial
0.35
Q1 FY15
3.03 E
3.85 E
2015(E)
2016(E)
Beta
0.63
$5.2 Billion
52-Week Range
$56.50-$73.93
$66.30
FINANCIAL ANALYSIS
IAC/INTERACTIVECORP's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially
unchanged when compared to the same period a year ago. Even though sales increased, the net income has
decreased. IAC/INTERACTIVECORP is extremely liquid. Currently, the Quick Ratio is 2.06 which clearly shows
the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period
last year.
During the same period, stockholders' equity ("net worth") has increased by 18.09% from the same quarter last
year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial
difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Q4 FY14
830.75
143.82
110.79
70.17
Q4 FY13
724.46
135.92
106.96
76.92
Q4 FY14
1,151.05
4,274.88
1,080.00
1,991.95
Q4 FY13
1,106.45
4,234.68
1,080.00
1,686.74
Q4 FY14
71.29%
17.31%
13.34%
0.73
9.70%
12.05%
Q4 FY13
69.28%
18.76%
14.76%
0.71
6.74%
16.82%
Q4 FY14
2.31
0.35
14.20
7.80
Q4 FY13
2.51
0.39
10.65
10.04
Q4 FY14
84
0.34
0.78
23.67
NA
1,082,933
Q4 FY13
82
0.24
0.88
20.52
NA
891,952
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to

use of median consensus estimates.
PAGE 4
March 29, 2015

NASDAQ: IACI
IAC/INTERACTIVECORP
$1.36

2.05%
RATINGS HISTORY
Our rating for IAC/INTERACTIVECORP has not
changed since 4/27/2011. As of 3/26/2015, the stock
was trading at a price of $66.30 which is 10.3%
below its 52-week high of $73.93 and 17.3% above
its 52-week low of $56.50.
BUY: $44.32
2 Year Chart
Beta
0.63
$5.2 Billion
$80
$70
Price/Earnings
$60
$50
2014
MOST RECENT RATINGS CHANGES

Date
Price
Action
3/26/13
$44.32 No Change
Price reflects the closing price as of the date listed, if available
RATINGS DEFINITIONS &

DISTRIBUTION OF THESTREET RATINGS
(as of 3/26/2015)
29.30% Hold - We do not believe this stock offers

conclusive evidence to warrant the purchase or sale of
shares at this time and that its likelihood of positive total
return is roughly in balance with the risk of loss.
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
Research Contact: 212-321-5381
Sales Contact: 866-321-8726
Price/Sales
discount
IACI 13.16
Peers 36.90
Discount. The P/CF ratio, a stocks price divided by
the company's cash flow from operations, is useful
for comparing companies with different capital
requirements or financing structures.
IACI is trading at a significant discount to its peers.
Price to Earnings/Growth
premium
discount
IACI 2.09
Peers 0.77
Premium. The PEG ratio is the stocks P/E divided by
the consensus estimate of long-term earnings
growth. Faster growth can justify higher price
multiples.
IACI trades at a significant premium to its peers.
Earnings Growth
lower
5
higher
IACI -17.74
Peers -19.62
Lower. Elevated earnings growth rates can lead to
capital appreciation and justify higher
price-to-earnings ratios.
However, IACI is expected to significantly trail its
peers on the basis of its earnings growth rate.
Sales Growth
discount
IACI 1.79
Peers 10.29
Discount. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
IACI is trading at a significant discount to its
industry on this measurement.
premium
discount
IACI 2.80
Peers 5.42
Discount. A lower price-to-book ratio makes a
stock more attractive to investors seeking stocks
with lower market values per dollar of equity on the
balance sheet.
premium
23.37% Sell - We believe that this stock is likely to

decline by more than 10% over the next 12 months, with
the risk involved too great to compensate for any
possible returns.
IACI 17.22
Peers 33.14
Discount. A lower price-to-projected earnings ratio
than its peers can signify a less expensive stock or
lower future growth expectations.
Price/Book
Price/CashFlow
discount
premium
47.33% Buy - We believe that this stock has the

opportunity to appreciate and produce a total return of
more than 10% over the next 12 months.
discount
premium
To
Buy
IACI 24.65
Peers 81.08
Discount. A lower P/E ratio than its peers can
signify a less expensive stock or lower growth
expectations.
Price/Projected Earnings
From
Buy
$66.30
VALUATION
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 81.08 for the Internet
Software & Services industry and a premium compared to the S&P 500 average of 19.41. To use another
comparison, its price-to-book ratio of 2.80 indicates valuation on par with the S&P 500 average of 2.74 and a
significant discount versus the industry average of 5.42. The price-to-sales ratio is similar to the S&P 500
average, but it is significantly below the industry average, indicating a discount. Upon assessment of these
and other key valuation criteria, IAC/INTERACTIVECORP proves to trade at a discount to investment
alternatives within the industry.
premium
2013
52-Week Range
$56.50-$73.93
lower
5
higher
IACI 2.86
Peers 35.12
Lower. A sales growth rate that trails the industry
implies that a company is losing market share.
IACI significantly trails its peers on the basis of
sales growth
DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
other third-party data providers.
TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.
PAGE 5

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March 29, 2015

Annual Dividend Rate

Annual Dividend Yield

STOCK PERFORMANCE (%)

Weekly Price: (US$)

RETURN ON EQUITY (%)

EPS ANALYSIS ($)

NA = not available NM = not meaningful

1 Compustat fiscal year convention is used for all fundamental

Report Date: March 29, 2015

March 29, 2015

Annual Dividend Yield

PEER GROUP ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*

Revenue Growth (TTM)

EBITDA Margin (TTM)

REVENUE GROWTH AND EARNINGS YIELD

Revenue Growth (TTM)

Earnings Yield (TTM)

Companies that exhibit both a high earnings yield

Report Date: March 29, 2015

March 29, 2015

Annual Dividend Yield

THESTREET RATINGS RESEARCH METHODOLOGY

Report Date: March 29, 2015

March 29, 2015

Annual Dividend Yield

Consensus EPS Estimates ($)

2 Sum of quarterly figures may not match annual estimates due to

Report Date: March 29, 2015

March 29, 2015

Annual Dividend Yield

MOST RECENT RATINGS CHANGES

Price reflects the closing price as of the date listed, if available

RATINGS DEFINITIONS &

29.30% Hold - We do not believe this stock offers

23.37% Sell - We believe that this stock is likely to

47.33% Buy - We believe that this stock has the

Report Date: March 29, 2015

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