Sonic Automotive, Inc.

NYSE:SAH Stock Report

Market Cap: US$2.3b

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.

Discounted Cash Flow
Simply Wall St
US$45.16
Fair Value
51.9% overvalued intrinsic discount
9
Number of Analysts

Below Fair Value: SAH ($68.59) is trading above our estimate of fair value ($45.16)

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 Ratio10.7x
EarningsUS$216.00m
Market CapUS$2.31b

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 Average22.4x
AAP Advance Auto Parts
54.7x41.7%US$2.6b
ABG Asbury Automotive Group
12.6x15.9%US$5.4b
GPI Group 1 Automotive
12x9.6%US$5.9b
AN AutoNation
10.2x8.2%US$7.1b
SAH Sonic Automotive
10.7x10.4%US$2.3b

Price-To-Earnings vs Peers: SAH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (22.4x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
2.4xn/aUS$16.51m
SSOK Sunstock
0.7xn/aUS$511.15k
MASN Maison Luxe
0.1xn/aUS$192.03k
No more companies available in this PE range
SAH 10.7xIndustry Avg. 14.8xNo. of Companies14PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SAH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the US Specialty Retail industry average (15.3x).

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 Ratio10.7x
Fair PE Ratio15.4x

Price-To-Earnings vs Fair Ratio: SAH is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.4x).

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$68.59
US$77.00
+12.3%
16.2%US$100.00US$60.00n/a9
Feb ’26US$74.25
US$69.56
-6.3%
10.4%US$83.00US$60.00n/a9
Jan ’26US$63.35
US$67.56
+6.6%
8.5%US$75.00US$60.00n/a9
Dec ’25US$69.14
US$67.56
-2.3%
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$35.00US$74.258
Jan ’25US$56.21
US$54.29
-3.4%
17.9%US$64.00US$35.00US$63.357
Dec ’24US$53.45
US$54.29
+1.6%
17.9%US$64.00US$35.00US$69.147
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
Analyst Price Target
Consensus Narrative from 9 Analysts
US$77.00
Fair Value
10.9% undervalued intrinsic discount
9
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/22 16:31
End of Day Share Price 2025/02/21 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Sonic Automotive, Inc. is covered by 18 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John MurphyBofA Global Research
Glenn ChinBuckingham Research Group Inc.
Garrett NelsonCFRA Equity Research