Investor's Craft

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Investor's Craft

Intrinsic Value of LendingTree, Inc. (TREE)

Previous Close	$35.59
Intrinsic Value	$1,291.89
Upside potential	+3,530%

Previous Close

$35.59

Intrinsic Value

$1,291.89

Potential

+3,530%

VALUATION INPUT DATA

Quarterly Revenue – actual and YoY change

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036	2037	2038	2039	2040	2041	2042	2043	2044	2045	2046	2047	2048	2049
INCOME STATEMENT
Revenue growth rate, %	33.9	32.5	31.1	29.8	28.5	27.4	26.2	25.2	24.2	23.2	22.3	21.4	20.6	19.8	19.1	18.4	17.7	17.1	16.5	15.9	15.4	14.8	14.4	13.9	13.4
Revenue, $	1205	1597	2093	2716	3491	4447	5613	7027	8726	10751	13149	15968	19260	23081	27488	32542	38309	44853	52245	60554	69856	80224	91736	104472	118511
Variable operating expenses, $m	241	319	419	543	698	889	1123	1405	1745	2150	2630	3194	3852	4616	5498	6508	7662	8971	10449	12111	13971	16045	18347	20894	23702
Fixed operating expenses, $m	733	795	863	936	1016	1102	1196	1297	1408	1527	1657	1798	1951	2117	2297	2492	2704	2934	3183	3453	3747	4065	4411	4786	5193
Total operating expenses, $m	974	1114	1282	1479	1714	1991	2319	2702	3153	3677	4287	4992	5803	6733	7795	9000	10366	11905	13632	15564	17718	20110	22758	25680	28895
Operating income, $m	231	482	811	1237	1777	2455	3295	4324	5573	7074	8862	10976	13457	16348	19693	23542	27943	32949	38613	44990	52138	60114	68978	78791	89616
EBITDA, $m	258	518	859	1299	1858	2559	3427	4491	5781	7332	9181	11367	13931	16919	20378	24357	28909	34086	39944	46540	53934	62186	71358	81513	92715
Interest expense (income), $m	22	40	51	65	83	105	131	164	204	252	309	376	455	547	655	778	920	1082	1266	1474	1707	1968	2259	2583	2940
Earnings before tax, $m	210	442	760	1171	1694	2350	3163	4160	5369	6822	8554	10601	13002	15800	19039	22763	27023	31867	37347	43516	50431	58146	66719	76209	86676
Tax expense, $m	57	119	205	316	457	635	854	1123	1450	1842	2309	2862	3511	4266	5140	6146	7296	8604	10084	11749	13616	15699	18014	20576	23402
Net income, $m	153	322	555	855	1237	1716	2309	3037	3919	4980	6244	7738	9492	11534	13898	16617	19727	23263	27263	31767	36814	42446	48705	55632	63273
BALANCE SHEET
Cash and short-term investments, $m	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Total assets, $m	940	1245	1632	2119	2723	3468	4378	5481	6806	8386	10256	12455	15023	18003	21440	25383	29881	34985	40751	47232	54488	62575	71554	81488	92439
Adjusted assets (=assets-cash), $m	940	1245	1632	2119	2723	3468	4378	5481	6806	8386	10256	12455	15023	18003	21440	25383	29881	34985	40751	47232	54488	62575	71554	81488	92439
Average production assets, $m	647	857	1124	1459	1875	2388	3014	3774	4686	5773	7061	8575	10343	12394	14761	17475	20572	24086	28055	32518	37513	43080	49262	56101	63640
Working capital, $m	39	51	67	87	112	142	180	225	279	344	421	511	616	739	880	1041	1226	1435	1672	1938	2235	2567	2936	3343	3792
Total debt, $m	1012	1286	1635	2072	2616	3287	4106	5099	6291	7713	9396	11375	13686	16368	19462	23010	27058	31652	36841	42675	49204	56483	64564	73505	83360
Total liabilities, $m	846	1121	1469	1907	2451	3121	3941	4933	6125	7547	9231	11210	13521	16203	19296	22845	26893	31487	36676	42509	49039	56317	64399	73339	83195
Total equity, $m	94	125	163	212	272	347	438	548	681	839	1026	1246	1502	1800	2144	2538	2988	3499	4075	4723	5449	6257	7155	8149	9244
Debt-to-equity ratio	5.787	8.124	7.880	7.716	7.610	7.544	7.507	7.492	7.491	7.502	7.520	7.544	7.572	7.602	7.634	7.667	7.701	7.734	7.767	7.800	7.832	7.863	7.894	7.923	7.952
Adjusted equity ratio	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100	0.100
CASH FLOW
Net income, $m	153	322	555	855	1237	1716	2309	3037	3919	4980	6244	7738	9492	11534	13898	16617	19727	23263	27263	31767	36814	42446	48705	55632	63273
Depreciation, amort., depletion, $m	27	36	47	62	81	104	132	167	208	259	319	390	474	571	685	816	965	1137	1331	1550	1797	2073	2380	2722	3100
Funds from operations, $m	180	358	602	917	1317	1819	2441	3203	4128	5239	6563	8129	9965	12106	14583	17433	20692	24399	28594	33317	38611	44519	51085	58354	66373
Change in working capital, $m	10	13	16	20	25	31	37	45	54	65	77	90	105	122	141	162	185	209	237	266	298	332	368	408	449
Cash from operations, $m	170	346	586	897	1293	1789	2404	3158	4073	5174	6486	8038	9860	11983	14442	17271	20508	24190	28357	33051	38313	44187	50716	57946	65924
Maintenance CAPEX, $m	-27	-36	-47	-62	-81	-104	-132	-167	-208	-259	-319	-390	-474	-571	-685	-816	-965	-1137	-1331	-1550	-1797	-2073	-2380	-2722	-3100
New CAPEX, $m	-164	-210	-266	-335	-416	-513	-627	-759	-912	-1088	-1288	-1514	-1768	-2052	-2367	-2714	-3097	-3514	-3969	-4462	-4995	-5568	-6182	-6839	-7539
Total CAPEX, $m	-191	-246	-314	-397	-497	-617	-759	-926	-1121	-1347	-1607	-1904	-2242	-2623	-3051	-3530	-4062	-4651	-5300	-6012	-6791	-7640	-8562	-9561	-10639
Free cash flow, $m	-21	100	272	500	796	1172	1645	2232	2953	3827	4880	6134	7618	9360	11391	13741	16446	19539	23057	27039	31522	36547	42154	48386	55285
Issuance/(repurchase) of shares, $m	6	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Retained Cash Flow, $m	-125	-31	-39	-49	-60	-75	-91	-110	-132	-158	-187	-220	-257	-298	-344	-394	-450	-510	-577	-648	-726	-809	-898	-993	-1095
Pot'l extraordinary dividend, $m	140
Cash available for distribution, $m	0	69	234	452	735	1098	1554	2122	2820	3669	4693	5915	7362	9062	11047	13347	15996	19028	22481	26391	30796	35738	41256	47393	54190
Discount rate, %	5.80	6.09	6.39	6.71	7.05	7.40	7.77	8.16	8.57	9.00	9.45	9.92	10.42	10.94	11.48	12.06	12.66	13.29	13.96	14.66	15.39	16.16	16.97	17.81	18.71
PV of cash for distribution, $m	0	61	194	348	523	715	920	1133	1346	1550	1738	1901	2030	2119	2163	2159	2108	2012	1878	1712	1524	1324	1122	927	745
Current shareholders' claim on cash, %	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50	50

Investor's Craft

Investor's Craft

Intrinsic Value of LendingTree, Inc. (TREE)

VALUATION INPUT DATA

Quarterly Revenue – actual and YoY change

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

INCOME STATEMENT

BALANCE SHEET

CASH FLOW