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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
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 pricetosales ratio to value the stock, and you have collected PS multiples on the following social media companies: Find the average PS ratio for these three firms. Given that Our Space is expected to generate $ million in sales next year and will have million shares of stock outstanding, use the average PS ratio you computed above to put a value on Our Space's stock.
The average PS ratio for the firms is Round to two decimal places.
Click on the icon here into a spreadsheet.
in order to copy the contents of the data table below
tableCompanyPS MultiplesFacebookSnapTwitter
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