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:

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. Find the averageP/S ratio for these three firms. Given that Our Space is expected to generate

$40

million in sales next year and will have

19

million shares of stock outstanding, use the average P/S ratio you computed above to put a value on OurSpace's stock.

The average P/S ratio for the 3 firms is

(Click on the icon here

in order to copy the contents of the data table below into a spreadsheet.)

Company	P/S Multiples
Facebook	13.04
Snap	17.76
Twitter	12.52