Rosetta Stone: Pricing the 2009 Ipo Essay examples

5283 Words Mar 27th, 2014 22 Pages
UNIVERSITY OF OREGON INVESTMENT GROUP

4-30-2010 Consumer Goods

Rosetta Stone Inc.
RECOMMENDATION: BUY
Stock Data Price (52 weeks) Symbol/Exchange Beta Shares Outstanding Average daily volume (3 month average) Current market cap(M) Current Price Valuation (per share) DCF Analysis Comparables Analysis Current Price Target Price Summary Financials 2009A ($M) Revenue Net Income Operating Cash Flow $252 $13.4 $41.1 $16.06- 32.97 RST / NYSE .65 19.9 287,505 $569 $26.25 $31.88 (50% weight) $37.10 (50%) $26.25 $34.49

CORPORATE SUMMARY Rosetta Stone Inc. (RST) joined the public markets in the spring of 2009. As of the end of their fiscal year 2009 they reported $252 million in sales, while also growing profits at 54 percent year over
…show more content…
The personal edition is for those who are looking to pick up a language on their own time and convenience. These normally appear for purchases at kiosks, retailer stores and or online to be used in the home. Schools that are looking for assistance with teaching their curriculum can purchase the classroom edition. For those who are teaching the language can use the tools offered in this edition to create track record for students as well as helpful activities, guidance to enhance the process, and detailed lesson plans. Families who use their home as a means for education are offered a targeted course that enhances lesson planning. Parents can create a formal language learning environment with ease. The Home School Edition provides similar functionalities as the classroom. Corporations who are need of language support for international activities can supply their employees with a convenient, user friendly platform that gives them total control of their learning experience.

The latest data in the 10k shows that 87 percent of their sales were CD-ROM based purchases while the remaining 13 percent came from online subscriptions. The chart above shows the recent growth by the company, both domestically and internationally. This trend is set to continue for the next 3-4 years as expansion efforts and global demand pick up. BUSINESS AND GROWTH STRATEGIES RST has been able

More about Rosetta Stone: Pricing the 2009 Ipo Essay examples

Open Document