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Turtle Beach Corp – Other Communications Equipment Manufacturing
Turtle Beach Corporation is one of the world's leading gaming accessory providers. The Turtle Beach brand (www.turtlebeach.com) is known for pioneering first-to-market features and patented innovations in high-quality, comfort-driven headsets for all levels of gamer, making it a fan-favorite brand and the market leader in console gaming audio for the last decade. Turtle Beach's ROCCAT brand (www.roccat.org) combines detail-loving German innovation with a genuine passion for designing the best PC gaming products. Under the ROCCAT brand, Turtle Beach creates award-winning keyboards, mice, headsets, mousepads, and other PC accessories.
Analysis Results
Intrinsic Value $106.47
Latest Price $6.82
Relative Value 94% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 37.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 37.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 68.6 61.3
2023 94.2 75.2
2024 129 92.3
2025 178 113
2026 244 139
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2510 million. This corresponds to a present value of 1280 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 481 million. Adding in the terminal value gives a total present value of 1760 million.

There are presently 16.5 million outstanding shares, so the intrinsic value per share is 106.47.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 193,112,000
Current Cash 37,720,000
Current Liabilities 78,168,000
Current Debt 0
Non-Cash Working Capital (NCWC) 77,224,000
Change in NCWC 32,580,000
EBIT 20,431,000
Tax Provision 2,428,000
Depreciation and Amortization 5,313,000
Capital Expenditure -5,621,000
Unlevered Free Cash Flow 50,241,018
Current Assets 169,976,000
Current Cash 46,681,000
Current Liabilities 78,651,000
Current Debt 0
Non-Cash Working Capital (NCWC) 44,644,000
Change in NCWC -721,000
EBIT 49,167,000
Tax Provision 13,711,000
Depreciation and Amortization 5,248,000
Capital Expenditure -5,663,000
Unlevered Free Cash Flow 35,179,926
Current Assets 102,547,000
Current Cash 8,249,000
Current Liabilities 64,588,000
Current Debt 15,655,000
Non-Cash Working Capital (NCWC) 45,365,000
Change in NCWC -25,161,000
EBIT 10,427,000
Tax Provision -6,237,000
Depreciation and Amortization 5,198,000
Capital Expenditure -1,912,000
Unlevered Free Cash Flow -11,448,000
Current Assets 113,816,000
Current Cash 7,078,000
Current Liabilities 73,597,000
Current Debt 37,385,000
Non-Cash Working Capital (NCWC) 70,526,000
Change in NCWC 13,917,000
EBIT 54,041,000
Tax Provision 1,737,000
Depreciation and Amortization 4,257,000
Capital Expenditure -5,079,000
Unlevered Free Cash Flow 64,842,423
Current Assets 86,766,000
Current Cash 5,247,000
Current Liabilities 67,550,000
Current Debt 42,640,000
Non-Cash Working Capital (NCWC) 56,609,000
Change in NCWC 4,498,000
EBIT 5,331,000
Tax Provision 593,000
Depreciation and Amortization 4,422,000
Capital Expenditure -4,411,000
Unlevered Free Cash Flow 9,840,000
Current Assets 86,635,000
Current Cash 6,183,000
Current Liabilities 66,893,000
Current Debt 38,552,000
Non-Cash Working Capital (NCWC) 52,111,000
Change in NCWC -3,762,000
EBIT -13,801,000
Tax Provision -387,000
Depreciation and Amortization 9,194,000
Capital Expenditure -3,229,000
Unlevered Free Cash Flow -11,598,000
Current Assets 94,903,000
Current Cash 7,114,000
Current Liabilities 69,183,000
Current Debt 37,267,000
Non-Cash Working Capital (NCWC) 55,873,000
Change in NCWC -3,745,000
EBIT -24,178,000
Tax Provision 2,393,000
Depreciation and Amortization 7,916,000
Capital Expenditure -6,693,000
Unlevered Free Cash Flow -26,700,000

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