Sonic Automotive, Inc.

NYSE:SAH Stock Report

Market Cap: US$2.2b

Sonic Automotive Valuation

Is SAH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SAH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SAH ($66.57) is trading above our estimate of fair value ($56.69)

Significantly Below Fair Value: SAH is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SAH?

Key metric: As SAH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SAH. This is calculated by dividing SAH's market cap by their current earnings.
What is SAH's PE Ratio?
PE Ratio11.6x
EarningsUS$196.10m
Market CapUS$2.16b

Price to Earnings Ratio vs Peers

How does SAH's PE Ratio compare to its peers?

The above table shows the PE ratio for SAH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.9x
AAP Advance Auto Parts
51.3x49.8%US$2.3b
VVV Valvoline
23.2x5.0%US$5.0b
GPI Group 1 Automotive
10.9x7.8%US$5.3b
ABG Asbury Automotive Group
14.3x19.6%US$5.1b
SAH Sonic Automotive
11.6x10.7%US$2.2b

Price-To-Earnings vs Peers: SAH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (24.9x).

Price to Earnings Ratio vs Industry

How does SAH's PE Ratio compare vs other companies in the US Specialty Retail Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
1.9xn/aUS$13.59m
MASN Maison Luxe
0.08xn/aUS$144.03k
EXPR.Q Express
0.000002xn/aUS$749.00
FTCH.Q Farfetch
n/an/aUS$395.00
SAH 11.6xIndustry Avg. 16.8xNo. of Companies11PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SAH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the US Specialty Retail industry average (16.8x).

Price to Earnings Ratio vs Fair Ratio

What is SAH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SAH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.6x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: SAH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SAH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$66.57
US$67.56
+1.5%
8.5%US$75.00US$60.00n/a9
Nov ’25US$57.11
US$65.75
+15.1%
8.4%US$75.00US$58.00n/a8
Oct ’25US$58.02
US$65.50
+12.9%
8.3%US$75.00US$58.00n/a8
Sep ’25US$62.34
US$61.43
-1.5%
15.4%US$73.00US$40.00n/a7
Aug ’25US$58.34
US$58.67
+0.6%
14.9%US$67.00US$40.00n/a6
Jul ’25US$53.77
US$58.83
+9.4%
15.2%US$68.00US$40.00n/a6
Jun ’25US$56.67
US$58.00
+2.3%
15.8%US$68.00US$40.00n/a6
May ’25US$57.28
US$57.17
-0.2%
17.2%US$68.00US$40.00n/a6
Apr ’25US$56.17
US$53.83
-4.2%
14.8%US$63.00US$40.00n/a6
Mar ’25US$52.50
US$53.67
+2.2%
14.5%US$63.00US$40.00n/a6
Feb ’25US$51.68
US$54.63
+5.7%
16.5%US$62.00US$35.00n/a8
Jan ’25US$56.21
US$54.29
-3.4%
17.9%US$64.00US$35.00n/a7
Dec ’24US$53.45
US$54.29
+1.6%
17.9%US$64.00US$35.00n/a7
Nov ’24US$49.42
US$54.14
+9.6%
17.3%US$64.00US$35.00US$57.117
Oct ’24US$47.76
US$53.57
+12.2%
16.8%US$64.00US$35.00US$58.027
Sep ’24US$53.45
US$53.57
+0.2%
16.8%US$64.00US$35.00US$62.347
Aug ’24US$49.60
US$53.57
+8.0%
16.8%US$64.00US$35.00US$58.347
Jul ’24US$47.67
US$52.00
+9.1%
14.5%US$59.00US$35.00US$53.777
Jun ’24US$41.26
US$51.71
+25.3%
14.6%US$59.00US$35.00US$56.677
May ’24US$46.10
US$51.71
+12.2%
14.6%US$59.00US$35.00US$57.287
Apr ’24US$54.34
US$56.86
+4.6%
19.3%US$71.00US$35.00US$56.177
Mar ’24US$57.78
US$56.29
-2.6%
19.5%US$71.00US$35.00US$52.507
Feb ’24US$55.66
US$51.71
-7.1%
17.7%US$62.00US$33.00US$51.687
Jan ’24US$49.27
US$54.14
+9.9%
17.8%US$65.00US$35.00US$56.217
Dec ’23US$51.81
US$54.14
+4.5%
17.8%US$65.00US$35.00US$53.457
Nov ’23US$48.35
US$55.00
+13.8%
19.6%US$71.00US$35.00US$49.427

Analyst Forecast: Target price is less than 20% higher than the current share price.

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