You have been asked to assess whether Walgreen Company, a drugstore chain, is correctly priced relative to its competitors in the drugstore industry. The following are the price / sale ratios, profit margins, and other relative details of the firms in that industry.

You have been asked to assess whether Walgreen Company, a drugstore chain, is correctly priced relative to its competitors in the drugstore industry. The following are the price / sale ratios, profit margins, and other relative details of the firms in that industry. Profit Margin Expected Company P/S ratio % Payout Growth % B Arbor Drugs 0.42 3.40% 18% 14.0% 1.05 Big B 0.30 1.90% 14% 23.5% 0.7 Drug Emp. 0.10 0.60% 0% 27.5% 0.9 Fay's 0.15 1.30% 37% 11.5% Genovese 0.18 1.70% 26% 10.5% 0.8 Long Drugs 0.30 2.00% 46% 6.0% 0.9 Perry Drugs 0.12 1.30% 0% 12.5% 1.1 Rite Aid 0.33 3.20% 37% 10.5% 0.9 Walgreen 0.60 2.70% 31% 13.5% 1.15 0.9 You have been asked to assess whether Walgreen Company, a drugstore chain, is correctly priced relative to its competitors in the drugstore industry. The following are the price / sale ratios, profit margins, and other relative details of the firms in that industry. Profit Margin Expected Company P/S ratio % Payout Growth % B Arbor Drugs 0.42 3.40% 18% 14.0% 1.05 Big B 0.30 1.90% 14% 23.5% 0.7 Drug Emp. 0.10 0.60% 0% 27.5% 0.9 Fay's 0.15 1.30% 37% 11.5% Genovese 0.18 1.70% 26% 10.5% 0.8 Long Drugs 0.30 2.00% 46% 6.0% 0.9 Perry Drugs 0.12 1.30% 0% 12.5% 1.1 Rite Aid 0.33 3.20% 37% 10.5% 0.9 Walgreen 0.60 2.70% 31% 13.5% 1.15 0.9