You have been asked to assess whether Walgreen Company, a drugstore chain, is correctly priced relative to its competitors in the drugstore industry at the end of 1993. The following are the price/sales ratios, profit margins, and other relative details of the firms in the drugstore industry. Company P/S Ratio Profit Margin Dividend Payout Expected Growth Beta Arbor drugs 0.42 3.40% 18% 14.0% 1.05 Big B Inc. 0.30 1.90% 14% 23.5% 0.70 Drug Empor. 0.10 0.60% 0% 27.5% 0.90 Fay's Inc. 0.15 1.30% 37% 11.5% 0.90 Genovese 0.18 1.70% 26% 10.5% 0.80 Longs Drug 0.30 2.00% 46% 6.0% 0.90 Perry Drugs 0.12 1.30% 0% 12.5% 1.10 Rite Aid 0.33 3.20% 37% 10.5% 0.90 Walgreen 0.60 2.70% 31% 13.5% 1.15 Do you think that Walgreen is overpriced because its price/sales ratio is the highest in the industry? Present and explain your analysis.