Discounted Cash Flow (DCF) Analysis Unlevered

Turtle Beach Corporation (HEAR)

$9.54

-4.44 (-31.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.79 | 9.54 | undervalue

Operating Data

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 (%)
EBITDA 9.6850.5217.8358.1725.8453.2370.4893.31123.53163.54
EBITDA (%)
EBIT 5.2646.2612.6452.9220.5343.9558.1977.04101.99135.02
EBIT (%)
Depreciation 4.424.265.205.255.319.2812.2916.2721.5428.52
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 5.257.088.2546.6837.7231.7742.0755.6973.7397.62
Total Cash (%)
Account Receivables 50.5352.8044.5343.8735.9590.43119.72158.50209.85277.82
Account Receivables (%)
Inventories 27.5249.4745.7171.30101.9399.69131.98174.73231.33306.26
Inventories (%)
Accounts Payable 13.4617.7222.5142.5340.4746.2261.1881107.24141.98
Accounts Payable (%)
Capital Expenditure -4.41-5.08-1.91-5.66-5.62-8.39-11.10-14.70-19.46-25.77
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 9.54
Beta 1.577
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 10.243
Total Debt -
Total Equity 156.12
Total Capital 156.12
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash

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
EBITDA 9.6850.5217.8358.1725.8453.2370.4893.31123.53163.54
EBIT 5.2646.2612.6452.9220.5343.9558.1977.04101.99135.02
Tax Rate -22.34%4.24%-53.28%26.14%12.05%-6.64%-6.64%-6.64%-6.64%-6.64%
EBIAT 6.4444.3019.3739.0918.0646.8762.0582.15108.76143.98
Depreciation 4.424.265.205.255.319.2812.2916.2721.5428.52
Accounts Receivable --2.268.270.667.91-54.48-29.29-38.78-51.34-67.97
Inventories --21.953.76-25.59-30.632.24-32.29-42.75-56.60-74.93
Accounts Payable -4.274.7920.02-2.055.7414.9719.8226.2434.74
Capital Expenditure -4.41-5.08-1.91-5.66-5.62-8.39-11.10-14.70-19.46-25.77
UFCF 6.4523.5239.4733.77-7.021.2716.622229.1338.57
WACC
PV UFCF 1.1513.6816.4219.7223.69
SUM PV UFCF 74.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.24
Free cash flow (t + 1) 39.34
Terminal Value 477.43
Present Value of Terminal Value 293.23

Intrinsic Value

Enterprise Value 367.90
Net Debt -37.72
Equity Value 405.62
Shares Outstanding 16.36
Equity Value Per Share 24.79