Update shared on 10 Dec 2025
Narrative Update
Analysts have maintained their price target on Sonic Automotive at approximately 78 dollars per share. This reflects steady expectations, as modest revenue growth and stable profit margin assumptions remain intact.
What's in the News
- Reported a buyback tranche update indicating that between July 1, 2025 and September 30, 2025, Sonic Automotive repurchased 0 shares for 0 dollars, representing 0 percent of the authorized program during that period (Key Developments).
- Confirmed completion to date of repurchases totaling 37,196,257 shares, or approximately 84.3 percent of the authorized amount, at an aggregate cost of 1,132 million dollars under the buyback program announced on July 27, 2004 (Key Developments).
Valuation Changes
- Fair Value: Unchanged at approximately 78.10 dollars per share, indicating no revision to the core valuation estimate.
- Discount Rate: Remains steady at 12.5 percent, reflecting an unchanged view of Sonic Automotive's risk and required return profile.
- Revenue Growth: Effectively unchanged at about 5.59 percent, with only a negligible rounding adjustment in the updated model.
- Net Profit Margin: Stable at roughly 1.73 percent, with only an immaterial numerical refinement in the latest assumptions.
- Future P/E: Maintained at approximately 12.60 times, signaling no meaningful change in expected earnings multiples applied to the stock.
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