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Find the average ps ratio for three firms

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World Wide Web Wares? (4W, 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 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 Internet retailer? stocks.

Company ?P/S Multiples
Amazing.com 4.7
ReallyCooking.com 4.3
Fixtures? & Appliances Online 3.9

Find the average? P/S ratio for these three firms. Given that 4W is expected to generate ?$49 million in sales next year and will have 15 million shares of stock? outstanding, use the average? P/S ratio you computed above to put a value on? 4W's stock.

The average p/s ratio is 4.3

The value of? 4W's stock is ?$__________________________. ?(Round to the nearest? cent.)

Reference no: EM132715671

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