Discounted Cash Flow (DCF) Analysis Levered

Turtle Beach Corporation (HEAR)

$6.92

+0.34 (+5.17%)
All numbers are in Millions, Currency in USD
Stock DCF: 59.78 | 6.92 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 149.13287.44234.66360.09366.35485.02642.13850.121,125.491,490.05
Revenue (%)
Operating Cash Flow 3.4242.2539.3751.05-0.3346.4261.4681.37107.72142.62
Operating Cash Flow (%)
Capital Expenditure -4.41-5.08-1.91-5.66-5.62-8.39-11.10-14.70-19.46-25.77
Capital Expenditure (%)
Free Cash Flow -0.9937.1737.4645.39-5.9538.0450.3666.6788.26116.85

Weighted Average Cost Of Capital

Share price $ 6.92
Beta 1.662
Diluted Shares Outstanding 16.36
Cost of Debt
Tax Rate 12.05
After-tax Cost of Debt 4.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.811
Total Debt -
Total Equity 113.25
Total Capital 113.25
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 149.13287.44234.66360.09366.35485.02642.13850.121,125.491,490.05
Operating Cash Flow 3.4242.2539.3751.05-0.3346.4261.4681.37107.72142.62
Capital Expenditure -4.41-5.08-1.91-5.66-5.62-8.39-11.10-14.70-19.46-25.77
Free Cash Flow -0.9937.1737.4645.39-5.9538.0450.3666.6788.26116.85
WACC
PV LFCF 34.0240.2847.6956.4766.87
SUM PV LFCF 245.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.81
Free cash flow (t + 1) 119.19
Terminal Value 1,214.96
Present Value of Terminal Value 695.28

Intrinsic Value

Enterprise Value 940.61
Net Debt -37.72
Equity Value 978.33
Shares Outstanding 16.36
Equity Value Per Share 59.78