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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
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: Find the average P/S ratio for these three firms. Given that Our Space is expected to generate $49 million in sales next year and will have 5 million shares of stock outstanding, use the average P/S ratio you computed above to put a value on Our Space's stock. The average P/S ratio for the 3 firms is (Round to two decimal places.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Company Facebook Snap Twitter Print Done P/S Multiples 13.41 18.26 13.32
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