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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...

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

4.3


Really Cooking.com

3.9


Fixtures​ & Appliances Online

3.6


Find the average​ P/S ratio for these three firms. Given that 4W is expected to generate ​$43 million in sales next​ year, and will have 7 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 for the 3 firms is




The value of​ 4W's stock is ​$

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