Our Space is a social media site that is growing in popularity. The firm has been around for a few years and has created a nice market niche for itself. In fact, it actually turned a profit last year, albeit a fairly small one. After doing some basic research on the company, you've decided to take a closer look. You plan to use the price-to-sales ratio to value the stock, and you have collected P/S multiples on the following social media companies: Company Facebook Snap Twitter P/S Multiples 13.51 18.29 13.27 Find the average P/S ratio for these three firms. Given that Our Space is expected to generate $46 million in sales next year and will have 13 million shares of stock outstanding, use the average P/S ratio you computed above to put a value on Our Space's stock. Question content area bottom Part 1 The average P/S ratio for the 3 firms is ?
Our Space is a social media site that is growing in popularity. The firm has been around for a few years and has created a nice market niche for itself. In fact, it actually turned a profit last year, albeit a fairly small one. After doing some basic research on the company, you've decided to take a closer look. You plan to use the price-to-sales ratio to value the stock, and you have collected P/S multiples on the following social media companies: Company Facebook Snap Twitter P/S Multiples 13.51 18.29 13.27 Find the average P/S ratio for these three firms. Given that Our Space is expected to generate $46 million in sales next year and will have 13 million shares of stock outstanding, use the average P/S ratio you computed above to put a value on Our Space's stock. Question content area bottom Part 1 The average P/S ratio for the 3 firms is ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Our Space is a social media site that is growing in popularity. The firm has been around for a few years and
has created a nice market niche for itself. In fact, it actually turned a profit last year, albeit a fairly small one.
After doing some basic research on the company, you've decided to take a closer look. You plan to use the
price-to-sales ratio to value the stock, and you have collected P/S multiples on the following social media
companies:
Company
Facebook
Snap
Twitter
P/S Multiples
13.51
18.29
13.27
Find the average P/S ratio for these three firms. Given that Our Space is expected to generate $46 million in
sales next year and will have 13 million shares of stock outstanding, use the average P/S ratio you computed
above to put a value on Our Space's stock.
Question content area bottom
Part 1
The average P/S ratio for the 3 firms is?
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