- I believe the company has already survived the worst part of the ongoing recession, and its growth prospects remain promising.
- In particular, I note that its insurance segment is poised for explosive growth for the next 5-10 years.
- Moreover, I reckon the company has historically sustained an 11% FCF margin. Thus, much of its future growth will further increase its already notable FCF.
- Unfortunately, my valuation model suggests that its current valuation is too far ahead of its underlying fundamentals. I estimate its fair value per share is just $232.67.
- Consequently, I deem TREE a great buy on dips, but for now, it's just a "hold."
For further details see:
LendingTree: Buy It On Dips