SAH Valuation

Sonic Automotive Inc

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77.388

-1.422(-1.804%)1D

Overview
Forecast
Valuation
Earnings

SAH Relative Valuation

SAH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SAH is overvalued; if below, it's undervalued.

Historical Valuation

Sonic Automotive Inc (SAH) is now in the Fair zone, suggesting that its current forward PE ratio of 12.35 is considered Fairly compared with the five-year average of 7.80. The fair price of Sonic Automotive Inc (SAH) is between 70.47 to 92.77 according to relative valuation methord.

Relative Value

Fair Zone

70.47-92.77

Current Price：78.45

Fair

12.35

Trailing

Forward

12.12

EV/EBITDA

Sonic Automotive Inc. (SAH) has a current EV/EBITDA of 12.12. The 5-year average EV/EBITDA is 8.08. The thresholds are as follows: Strongly Undervalued below 4.66, Undervalued between 4.66 and 6.37, Fairly Valued between 9.79 and 6.37, Overvalued between 9.79 and 11.50, and Strongly Overvalued above 11.50. The current Forward EV/EBITDA of 12.12 falls within the Strongly Overvalued range.

13.43

EV/EBIT

Sonic Automotive Inc. (SAH) has a current EV/EBIT of 13.43. The 5-year average EV/EBIT is 9.83. The thresholds are as follows: Strongly Undervalued below 5.61, Undervalued between 5.61 and 7.72, Fairly Valued between 11.94 and 7.72, Overvalued between 11.94 and 14.04, and Strongly Overvalued above 14.04. The current Forward EV/EBIT of 13.43 falls within the Overvalued range.

0.17

Sonic Automotive Inc. (SAH) has a current PS of 0.17. The 5-year average PS is 0.14. The thresholds are as follows: Strongly Undervalued below 0.10, Undervalued between 0.10 and 0.12, Fairly Valued between 0.16 and 0.12, Overvalued between 0.16 and 0.18, and Strongly Overvalued above 0.18. The current Forward PS of 0.17 falls within the Overvalued range.

5.44

P/OCF

Sonic Automotive Inc. (SAH) has a current P/OCF of 5.44. The 5-year average P/OCF is 5.95. The thresholds are as follows: Strongly Undervalued below 0.11, Undervalued between 0.11 and 3.03, Fairly Valued between 8.87 and 3.03, Overvalued between 8.87 and 11.79, and Strongly Overvalued above 11.79. The current Forward P/OCF of 5.44 falls within the Historic Trend Line -Fairly Valued range.

9.16

P/FCF

Sonic Automotive Inc. (SAH) has a current P/FCF of 9.16. The 5-year average P/FCF is 19.34. The thresholds are as follows: Strongly Undervalued below -31.08, Undervalued between -31.08 and -5.87, Fairly Valued between 44.54 and -5.87, Overvalued between 44.54 and 69.75, and Strongly Overvalued above 69.75. The current Forward P/FCF of 9.16 falls within the Historic Trend Line -Fairly Valued range.

Sonic Automotive Inc (SAH) has a current Price-to-Book (P/B) ratio of 2.61. Compared to its 3-year average P/B ratio of 2.01 , the current P/B ratio is approximately 30.24% higher. Relative to its 5-year average P/B ratio of 2.04, the current P/B ratio is about 27.93% higher. Sonic Automotive Inc (SAH) has a Forward Free Cash Flow (FCF) yield of approximately 13.79%. Compared to its 3-year average FCF yield of 7.49%, the current FCF yield is approximately 84.18% lower. Relative to its 5-year average FCF yield of 10.97% , the current FCF yield is about 25.77% lower.

2.61

P/B

Median3y

2.01

Median5y

2.04

13.79

FCF Yield

Median3y

7.49

Median5y

10.97

Competitors Valuation Multiple

The average P/S ratio for SAH's competitors is 0.99, providing a benchmark for relative valuation. Sonic Automotive Inc Corp (SAH) exhibits a P/S ratio of 0.17, which is -82.56% above the industry average. Given its robust revenue growth of 5.91%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

National Vision Holdings Inc

Advance Auto Parts Inc

0.41

-6.82%

3.52B

Performance Decomposition

Market capitalization of SAH increased by 33.79% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 5.23 to 17.42.

The secondary factor is the Revenue Growth, contributed 5.91%to the performance.

Overall, the performance of SAH in the past 1 year is driven by P/E Change. Which is more unsustainable.

5.91%

3.45B → 3.66B

Revenue Growth

-205.04%

1.19 → -1.25

Margin Expansion

232.92%

5.23 → 17.42

P/E Change

33.79%