DCF Tool

TREE

LendingTree Inc. – Mortgage and Nonmortgage Loan Brokers
LendingTree is the nation's leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student loans, insurance, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on its network and notifies consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc.
Analysis Results
Intrinsic Value $124.55
Latest Price $23.86
Relative Value 81% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 17.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 68.0 62.6
2023 80.2 67.9
2024 94.6 73.7
2025 112 80.0
2026 132 86.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2010 million. This corresponds to a present value of 1220 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 371 million. Adding in the terminal value gives a total present value of 1590 million.

There are presently 12.8 million outstanding shares, so the intrinsic value per share is 124.55.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 374,379,000
Current Cash 251,231,000
Current Liabilities 274,432,000
Current Debt 166,008,000
Non-Cash Working Capital (NCWC) 14,724,000
Change in NCWC 90,000
EBIT 227,000
Tax Provision 11,298,000
Depreciation and Amortization 60,648,000
Capital Expenditure -35,065,000
Unlevered Free Cash Flow 25,869,626
Current Assets 296,409,000
Current Cash 169,932,000
Current Liabilities 111,843,000
Current Debt 0
Non-Cash Working Capital (NCWC) 14,634,000
Change in NCWC 41,157,000
EBIT -1,924,000
Tax Provision -19,961,000
Depreciation and Amortization 67,279,000
Capital Expenditure -42,149,000
Unlevered Free Cash Flow 64,363,000
Current Assets 189,426,000
Current Cash 60,243,000
Current Liabilities 230,706,000
Current Debt 75,000,000
Non-Cash Working Capital (NCWC) -26,523,000
Change in NCWC -18,639,000
EBIT 80,005,000
Tax Provision -8,479,000
Depreciation and Amortization 66,239,000
Capital Expenditure -20,041,000
Unlevered Free Cash Flow 107,564,000
Current Assets 234,171,000
Current Cash 105,102,000
Current Liabilities 261,953,000
Current Debt 125,000,000
Non-Cash Working Capital (NCWC) -7,884,000
Change in NCWC 70,141,000
EBIT 69,145,000
Tax Provision -65,575,000
Depreciation and Amortization 31,483,000
Capital Expenditure -14,907,000
Unlevered Free Cash Flow 155,862,000
Current Assets 438,041,000
Current Cash 368,550,000
Current Liabilities 147,516,000
Current Debt 0
Non-Cash Working Capital (NCWC) -78,025,000
Change in NCWC -60,810,000
EBIT 58,186,000
Tax Provision 6,291,000
Depreciation and Amortization 21,551,000
Capital Expenditure -8,040,000
Unlevered Free Cash Flow -3,351,131
Current Assets 140,623,000
Current Cash 91,131,000
Current Liabilities 66,707,000
Current Debt 0
Non-Cash Working Capital (NCWC) -17,215,000
Change in NCWC -1,797,000
EBIT 52,363,000
Tax Provision 20,366,000
Depreciation and Amortization 6,187,000
Capital Expenditure -31,955,000
Unlevered Free Cash Flow 4,120,432
Current Assets 245,584,000
Current Cash 206,975,000
Current Liabilities 54,027,000
Current Debt 0
Non-Cash Working Capital (NCWC) -15,418,000
Change in NCWC -10,229,000
EBIT 28,325,000
Tax Provision -22,973,000
Depreciation and Amortization 3,157,000
Capital Expenditure -7,237,000
Unlevered Free Cash Flow 14,016,000
Current Assets 119,659,000
Current Cash 86,212,000
Current Liabilities 38,636,000
Current Debt 0
Non-Cash Working Capital (NCWC) -5,189,000
Change in NCWC 13,933,000
EBIT 10,022,000
Tax Provision -484,000
Depreciation and Amortization 3,381,000
Capital Expenditure -3,856,000
Unlevered Free Cash Flow 23,480,000
Current Assets 132,744,000
Current Cash 91,667,000
Current Liabilities 60,199,000
Current Debt 0
Non-Cash Working Capital (NCWC) -19,122,000
Change in NCWC -6,838,000
EBIT 8,007,000
Tax Provision -453,000
Depreciation and Amortization 3,648,000
Capital Expenditure -2,750,000
Unlevered Free Cash Flow 2,067,000
Current Assets 122,272,000
Current Cash 80,190,000
Current Liabilities 54,366,000
Current Debt 0
Non-Cash Working Capital (NCWC) -12,284,000
Change in NCWC 16,631,000
EBIT -6,009,000
Tax Provision -1,483,000
Depreciation and Amortization 4,463,000
Capital Expenditure -2,632,000
Unlevered Free Cash Flow 12,453,000

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