Is Rosetta Stone Inc (RST) a Buy?

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The company has $140 million in cash with zero debt on the books. With today’s market cap, that means the market value of the operating business is just $236 million. The company is expecting $16 million to $18 million in EBITDA for the full year and $280 million to $290 million in revenue. With the operating business trading at less than one time sales compared with enterprise value, the company still looks very cheap, regardless of the 25% run-up in stock price over the past 12 months.

For investors interested in a value tech pick, Rosetta Stone Inc (NYSE:RST) offers encouraging signs of a turnaround for a low price.

The article Rosetta Stone Trading Cheap and Set for Growth originally appeared on Fool.com is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Rosetta Stone.

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