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 sumed a profit last year, abe a fairly small one Aher 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 colected PS muples on the following social media companies Find the average PS ratio for these three firms. Given that Our Space is expected to generate $32 million in sales next year and will have 15 million shares of stock outstanding, use the average P/B ratio you computed above to put a value on Our Space's stock The average PS ratio for the 3 firms is (Round to two decimal places) ATD

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter7: Payroll
Section: Chapter Questions
Problem 1.13C
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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 nice market niche for itself in fact, it actualy sumed a profit last year, abe
a farly 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 rato to value the stock, and you have colected 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 $32 milion in sales next year and will have
15 million shares of stock outstanding, use the average P/S rato you computed above to put a value on Our Space's stock
am
The averags P/S ratio for the 3 firms is (Round to two decimal places)
SA
Transcribed Image Text: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 actualy sumed a profit last year, abe a farly 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 rato to value the stock, and you have colected 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 $32 milion in sales next year and will have 15 million shares of stock outstanding, use the average P/S rato you computed above to put a value on Our Space's stock am The averags P/S ratio for the 3 firms is (Round to two decimal places) SA
P/S ratio f
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
P/S Multiples
13.62
18.41
13.52
Transcribed Image Text:P/S ratio f 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 P/S Multiples 13.62 18.41 13.52
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