MeritValue

Turtle Beach Corp

TBCHdata completeness 100%18 fiscal years on file
The thesis, from the filings

Turtle Beach Corp earns about -7% on invested capital, below its ~9% cost of capital, but has diluted owners by 12% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $7.97 and $18.84 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$366.4M1$240.2M2$258.1M3$372.8M3$319.9M3
Net income$17.7M4−$59.5M5−$17.7M6$16.2M6$15.7M6
Operating cash flow−$327,0007−$41.8M8$27M9$5.76M9$35.5M9
Capital expenditure$5.62M10$3.55M11$2.16M12$4.91M12$1.42M12
Free cash flow (derived)−$5.95M7−$45.4M8$24.9M9$847,0009$34M9
Total debt———$97.1M13$110.6M13
Cash & equivalents$37.7M14$11.4M15$18.7M16$13M17$17M17
Diluted shares18.3M20.5M17.1M20.8M20.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$62.82
your share of equity
Profit it earned you last year
$7.69
Free cash flow it threw off
$16.64
Debt you’d be carrying
$54.08

10 shares is a claim on $62.82 of net worth that earned you $7.69 and generated $16.64 of cash last year, against $54.08 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-7% avg · 5y
FY21 17%FY22 -54%FY23 -20%FY24 9%FY25 10%

It earned about -7% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+12% shares · 5y

Share count is up 12% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 14% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $7.97 and $18.84 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$18.84
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$24.9M
DCF · Growth Exit 5Y
$17.01
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$24.9M
Earnings Power Value
$7.97
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$15.7M
  • growthAssumed0.0%
Graham Number
$10.43
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $17.01
The three cases
Bear0.0%$12.8
Base5.0%$17.01
Bull10.0%$22.04

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-24-030883 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-25-040292 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-104436 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000950170-24-030883 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000950170-25-040292 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001193125-26-104436 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000950170-24-030883 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000950170-25-040292 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001193125-26-104436 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000950170-24-030883 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000950170-25-040292 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001193125-26-104436 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2024-12-31 · accession 0001193125-26-104436 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2021-12-31 · accession 0000950170-23-010660 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0000950170-24-030883 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0000950170-25-040292 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0001193125-26-104436 (CashAndCashEquivalentsAtCarryingValue)