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World Wide Web Wares (GW for short) is an online retailer of small Kitchen appliances and utensils. The firm has been around for a few
World Wide Web Wares (GW 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 doser look You plan to use the price-lo-sales ratio to value the stock, and you have collected P/S multiples on the following Internet retailer stocks. Find the average PIS ratio for these three firms. Given that 4W is expected to generate 541 million in sales next year and will have 15 million shares of stock outstanding, use the average PIS ratio you computed above to put a value on 4W's stock. The average P/S ratio for the 3 firms is (Round to two decimal places) The value of 4W:s stocks Round to the nearest cant) Company Amazing.com ReallyCooking.com Fixtures & Appliances Online P/S Multiples 4.9 4.1 4.1
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