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$/$sales ratios, profit margins, and other relative details of the firms in the drugstore industry.

Company P$/$S Ratio Profit Margin Payout Expected Growth Beta

Arbor Drugs $0\mathrm{.}423\mathrm{.}40\%18\%14\mathrm{.}0\%1\mathrm{.}05$

Big B Inc. $0\mathrm{.}301\mathrm{.}90\%14\%23\mathrm{.}5\%0\mathrm{.}70$

Drug Empor. $0\mathrm{.}100\mathrm{.}60\%0\%27\mathrm{.}5\%0\mathrm{.}90$

Fay's Inc. $0\mathrm{.}151\mathrm{.}30\%37\%11\mathrm{.}5\%0\mathrm{.}90$

CVS $0\mathrm{.}181\mathrm{.}70\%26\%10\mathrm{.}5\%0\mathrm{.}80$

Drugs R Us $0\mathrm{.}302\mathrm{.}00\%46\%6\mathrm{.}0\%0\mathrm{.}90$

Perry Drugs $0\mathrm{.}121\mathrm{.}30\%0\%12\mathrm{.}5\%1\mathrm{.}10$

Rite Aid $0\mathrm{.}333\mathrm{.}20\%37\%10\mathrm{.}5\%0\mathrm{.}90$

Walgreen $0\mathrm{.}602\mathrm{.}70\%31\%13\mathrm{.}5\%1\mathrm{.}15$

Based entirely on a subjective analysis, do you think that Walgreen is overpriced because its price$/$sales ratio is the highest in the industry? If it is not, how would you rationalize its value?