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Lending Tree Valuation | 02.22.17
Ulysses Hickey
Overview | 1
Overview
LendingTree, Inc. operates a lending business and real
estate business. The company originates, processes,
approves and funds various types of residential real
estates loans and offers residential mortgages loan
settlement services. The company also offers access to
home equity loans and lines of credit, personal loans,
business loans and auto loans.
Strategic Rational
JIF’s Demands
• Greater Exposure to the Financials
sector
• Avoid rising interest rate
environmental risks
• Invest in forward thinking institutions
with bordering and flexible
applications
Leading Tree Attributes
• Exposed to financials sector
• Diversified product platform limiting
rising rate risks
• Technologically appealing to
millennials,1/3 of US workforce
• Ease of use
Strategic Rational | 2
Company Strategy | 3
Company Evolution | 4
Company Partners | 5
Company Revenue | 6
Non-Mortgage Categories Diversifying Revenue
Non-Mortgage Products | 7
Analyst Estimates and Insider Transactions | 8
5/5 – Strong buy (Notable Oppenheimer & Co. 12M-$125)
Insider Transactions Notable: Douglas Lebda OMS 4000 Shares (Possible Negative implication)
Possible retracement via EW 5 Peak,
trading volume above average, Trading
Above Cloud
Technical Analysis | 9
TREE Vs. SML Index & S6THMF
Index Comparison | 10
TREE Vs. VFH
Index Comparison | 11
Open Calls | 12
Open Puts | 13
Acquisition Overview
Confidence
• Very strong FCF growth, Strong and consistent
revenue growth, Company Guidance $500-$520
revenue growth for 2017
• 5/5 Analyst recommendation strong buy
(Notably Oppenheimer & Co. 12M Px $125)
• 44% Non- Mortgage based revenue
• Index comparison yields strong performance
• Call/Put Open interest combine over 1000
contracts open X=115-135,currently trading at
113.44. Indicates Strong Bull sentiment
• BlackRock (Notable Holder)
Concern
• Douglas Lebda,CEO Open Market Sales 4000
Shares 02/05/17
• Can revenue Growth keep up in rising rate
environment
• Technical Analysis suggests Semi-Overbought
Open Puts | 14
Bottom Line
Fast Paced growth company
12 month price target of $125.16
10.81% Upside
Perpetuity Growth Method
Strong Buy at 3.5%
Bottom Line | 15

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Lending Tree Valuation

  • 1. Lending Tree Valuation | 02.22.17 Ulysses Hickey
  • 2. Overview | 1 Overview LendingTree, Inc. operates a lending business and real estate business. The company originates, processes, approves and funds various types of residential real estates loans and offers residential mortgages loan settlement services. The company also offers access to home equity loans and lines of credit, personal loans, business loans and auto loans.
  • 3. Strategic Rational JIF’s Demands • Greater Exposure to the Financials sector • Avoid rising interest rate environmental risks • Invest in forward thinking institutions with bordering and flexible applications Leading Tree Attributes • Exposed to financials sector • Diversified product platform limiting rising rate risks • Technologically appealing to millennials,1/3 of US workforce • Ease of use Strategic Rational | 2
  • 8. Non-Mortgage Categories Diversifying Revenue Non-Mortgage Products | 7
  • 9. Analyst Estimates and Insider Transactions | 8 5/5 – Strong buy (Notable Oppenheimer & Co. 12M-$125) Insider Transactions Notable: Douglas Lebda OMS 4000 Shares (Possible Negative implication)
  • 10. Possible retracement via EW 5 Peak, trading volume above average, Trading Above Cloud Technical Analysis | 9
  • 11. TREE Vs. SML Index & S6THMF Index Comparison | 10
  • 12. TREE Vs. VFH Index Comparison | 11
  • 15. Acquisition Overview Confidence • Very strong FCF growth, Strong and consistent revenue growth, Company Guidance $500-$520 revenue growth for 2017 • 5/5 Analyst recommendation strong buy (Notably Oppenheimer & Co. 12M Px $125) • 44% Non- Mortgage based revenue • Index comparison yields strong performance • Call/Put Open interest combine over 1000 contracts open X=115-135,currently trading at 113.44. Indicates Strong Bull sentiment • BlackRock (Notable Holder) Concern • Douglas Lebda,CEO Open Market Sales 4000 Shares 02/05/17 • Can revenue Growth keep up in rising rate environment • Technical Analysis suggests Semi-Overbought Open Puts | 14
  • 16. Bottom Line Fast Paced growth company 12 month price target of $125.16 10.81% Upside Perpetuity Growth Method Strong Buy at 3.5% Bottom Line | 15