Sonic Automotive, Inc.

NYSE:SAH Stock Report

Market Cap: US$2.1b

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 ($61.04) is trading above our estimate of fair value ($50.94)

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?

Other financial metrics that can be useful for relative valuation.

SAH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA9.3x
PEG Ratio0.8x

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 Average53.7x
AAP Advance Auto Parts
169.2x31.7%US$3.6b
GPI Group 1 Automotive
8.5x5.2%US$4.6b
VVV Valvoline
25.9x14.3%US$5.3b
ABG Asbury Automotive Group
11.3x17.1%US$4.6b
SAH Sonic Automotive
10.9x14.3%US$2.1b

Price-To-Earnings vs Peers: SAH is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (53.7x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.6%
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No more companies

Price-To-Earnings vs Industry: SAH is good value based on its Price-To-Earnings Ratio (10.9x) compared to the US Specialty Retail industry average (17x).

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 Ratio10.9x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: SAH is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

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$61.04
US$61.43
+0.6%
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$35.00n/a7
Oct ’24US$47.76
US$53.57
+12.2%
16.8%US$64.00US$35.00n/a7
Sep ’24US$53.45
US$53.57
+0.2%
16.8%US$64.00US$35.00n/a7
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
Oct ’23US$43.30
US$57.00
+31.6%
21.6%US$71.00US$35.00US$47.767
Sep ’23US$52.40
US$58.57
+11.8%
24.8%US$82.00US$35.00US$53.457
Aug ’23US$43.02
US$55.71
+29.5%
27.2%US$82.00US$33.00US$49.607

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

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