Question
CAN YOU PLEASE HELP ME WITH THIS QUESTION World Wide Web Wares?(4W, for?short) is an online retailer of small kitchen appliances and utensils. The firm
CAN YOU PLEASE HELP ME WITH THIS QUESTION
World Wide Web Wares?(4W, for?short) is an online retailer of small kitchen appliances and utensils. 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 Internet retailer?stocks: LOADING...
. Find the average?P/S ratio for these three firms. Given that 4W is expected to generate ?$40 million in sales next year and will have 14 million shares of stock?outstanding, use the average?P/S ratio you computed above to put a value on?4W's stock.
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