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In: Finance

Conceptually, how you would forecast the revenue for Turtle Beach Corp. The net revenue increased 93%...

Conceptually, how you would forecast the revenue for Turtle Beach Corp. The net revenue increased 93% to $287.4 (2019) million from $149.1 million (2018). You may have to walk through a DCF. Please consider how competition and their recent acquisition can affect their revenues.

Solutions

Expert Solution

Given data

Revenue in 2018- $149.1 million

Revenue in 2019- $287.4 million

Percentage Change : 92.75 % Approximately 93%

Discounted Cash Flow Analysis : The Forecast Period & Forecasting Revenue growth

The first step in Discounted Cash Flow Analysis process is to determine the how far the business run in future. Here are some general guidelines to use when determining a company's excess return period or forecast period based on the business competitive positions.

The followings are some of the examples and situations:

  • Slow Growing :operate in a highly competitive low margin industry.
  • Solid Company has advantages Such as Strong Marketing Channels.
  • Outstanding growth operates with high barriers to entry, dominant market positions

From the case of  forecast the revenue for Turtle Beach Corp. in such situation is to analyse the comparative data like increase in revenue growth by 93%. It is comes under the Perview of Solid Company has advantages Such as Strong Marketing Channels.


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