Question

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.


Related Solutions

Conceptually describe how you would evaluate the initial grade of the new segmental culvert so that...
Conceptually describe how you would evaluate the initial grade of the new segmental culvert so that in its final condition (i.e. after all settlement is complete) it slopes with a 4% grade. The culvert will be installed prior to construction of the embankment (i.e. the embankment will be filled over the culvert).
Describe what a standard deviation is conceptually. How would you use it in your daily life...
Describe what a standard deviation is conceptually. How would you use it in your daily life or in your job now? Please provide short examples.
How do you forecast earnings for a company. Example: Revenue for Google was $156,562,000 in year...
How do you forecast earnings for a company. Example: Revenue for Google was $156,562,000 in year 1, $164,251,000 in year 2, and $166,251,000 in year 3. Forecast years 4, 5, and 6. How would you do that? Also, would it be the same way for all forcasting on Balance sheet and Income Statement items?
You are a financial consultant and have been asked to forecast how much revenue your client...
You are a financial consultant and have been asked to forecast how much revenue your client organization must generate per case to meet its financial requirements. Your client has provided you with the information below. You need to provide the following information to your client: The target case rate AND A brief analysis of the impact of a 5% reduction in the budgeted expense. Annual Case Volume Medicare 1,500 Cost-paying cases 600 Charge-paying cases 750 Charity care cases 150 Total...
At the end of 2007, you forecast CF for a firm with net deb of 759...
At the end of 2007, you forecast CF for a firm with net deb of 759 million that costs 7% percent annually. NOPAT in 2007,2008,2009 respectively: 1450$, 1576$, 1718$. FCF to equity in 2007,2008,2009 respectively:1020, 1124, 1200. You forecast that both CF will grow at a rate of 4% after 2009. Use require return on equity of 21% and tax of 35%, calculate market value of equity and market value of assets at end of 2006
How would the following changes in price affect total revenue? That is, would total revenue increase,...
How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged? Price falls and demand is inelastic. Price rises and demand is elastic. Price rises and supply is elastic. Price rises and supply is inelastic. Price rises and demand is inelastic. Price falls and demand is elastic. Price falls and demand is of unit elasticity
What would happen to net income and cash flow if depreciation were increased by $1 million?
Butterfly Tractors had $14 million in sales last year. Cost of goods sold was $8.00 million, depreciation expense was $2 million, interest payment on outstanding debt was $1 million, and the firm’s tax rate was 35%.What would happen to net income and cash flow if depreciation were increased by $1 million? (Enter your numeric answers in millions rounded to 2 decimal places. Select "unaffected" if the results do not affect the balance.)
How would you determine whether the morphological diversity of animals has increased, decreased, or stayed the...
How would you determine whether the morphological diversity of animals has increased, decreased, or stayed the same since the Cambrian? Explain what kind of data you would collect, how you would analyze it, and what sorts of biases you might need to correct for. Choose three species of wild organisms (not domesticated species or humans) and predict how their populations and geographic ranges will change in the future, assuming that global climate change continues at its current rate. please answer...
3. What benchmark would you use to calculate materiality? Why? ((a)Net Income, (b) Assets, (c) Revenue,...
3. What benchmark would you use to calculate materiality? Why? ((a)Net Income, (b) Assets, (c) Revenue, or (d)Equity.) (Pick 1 letter & Explain why) a. 5 percent to 10 percent of net income before taxes. b. ½ percent to 1 percent of total assets. c. ½ percent to 1 percent of total revenues. d. ½-1 percent of total equity. 4. Would you use a higher percentage or a lower percentage for the benchmark you selected in Q3 above. (EX: 5%...
For the next fiscal​ year, you forecast net income of and ending assets of $ 49,700...
For the next fiscal​ year, you forecast net income of and ending assets of $ 49,700 and ending assets of $ 506,500. Your​ firm's payout ratio is 10.1%. Your beginning​ stockholders' equity is $ 295,700 and your beginning total liabilities are $ 119,500. Your​ non-debt liabilities such as accounts payable are forecasted to increase by $ 9,900. Assume your beginning debt is $ 109,300. What amount of equity and what amount of debt would you need to issue to cover...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT