Discounted Cash Flow (DCF) Analysis Levered

Turtle Beach Corporation (HEAR)

$11.15

-0.60 (-5.11%)

All numbers are in Millions, Currency in USD

Stock DCF: 4.89 | 11.15 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	287.44	234.66	360.09	366.35	240.17	241.60	243.04	244.49	245.95	247.41
Revenue (%)
Operating Cash Flow	42.25	39.37	51.05	-0.33	-41.85	13.60	13.68	13.76	13.84	13.92
Operating Cash Flow (%)
Capital Expenditure	-5.08	-1.91	-5.66	-5.62	-3.55	-3.46	-3.48	-3.50	-3.53	-3.55
Capital Expenditure (%)
Free Cash Flow	37.17	37.46	45.39	-5.95	-45.40	10.13	10.20	10.26	10.32	10.38

Weighted Average Cost Of Capital

Share price	$ 11.15
Beta	2.117
Diluted Shares Outstanding	16.45
Cost of Debt
Tax Rate	-9.35
After-tax Cost of Debt	6.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.705
Total Debt	19.05
Total Equity	183.42
Total Capital	202.47
Debt Weighting	9.41
Equity Weighting	90.59
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	287.44	234.66	360.09	366.35	240.17	241.60	243.04	244.49	245.95	247.41
Operating Cash Flow	42.25	39.37	51.05	-0.33	-41.85	13.60	13.68	13.76	13.84	13.92
Capital Expenditure	-5.08	-1.91	-5.66	-5.62	-3.55	-3.46	-3.48	-3.50	-3.53	-3.55
Free Cash Flow	37.17	37.46	45.39	-5.95	-45.40	10.13	10.20	10.26	10.32	10.38
WACC
PV LFCF						7.93	7.06	6.29	5.59	4.98
SUM PV LFCF										36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	13.02
Free cash flow (t + 1)	10.59
Terminal Value	96.06
Present Value of Terminal Value	52.09

Intrinsic Value

Enterprise Value	88.10
Net Debt	7.66
Equity Value	80.44
Shares Outstanding	16.45
Equity Value Per Share	4.89