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 9.53 is considered Fairly compared with the five-year average of 7.94. The fair price of Sonic Automotive Inc (SAH) is between 62.11 to 86.92 according to relative valuation methord.
Relative Value
Fair Zone
62.11-86.92
Current Price：64.23
Fair
9.63
PE
1Y
3Y
5Y
Trailing
Forward
9.49
EV/EBITDA
Sonic Automotive Inc. (SAH) has a current EV/EBITDA of 9.49. The 5-year average EV/EBITDA is 8.18. The thresholds are as follows: Strongly Undervalued below 4.57, Undervalued between 4.57 and 6.38, Fairly Valued between 9.99 and 6.38, Overvalued between 9.99 and 11.79, and Strongly Overvalued above 11.79. The current Forward EV/EBITDA of 9.49 falls within the Historic Trend Line -Fairly Valued range.
11.55
EV/EBIT
Sonic Automotive Inc. (SAH) has a current EV/EBIT of 11.55. The 5-year average EV/EBIT is 9.89. The thresholds are as follows: Strongly Undervalued below 5.57, Undervalued between 5.57 and 7.73, Fairly Valued between 12.05 and 7.73, Overvalued between 12.05 and 14.21, and Strongly Overvalued above 14.21. The current Forward EV/EBIT of 11.55 falls within the Historic Trend Line -Fairly Valued range.
0.14
PS
Sonic Automotive Inc. (SAH) has a current PS of 0.14. 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 0.14 falls within the Historic Trend Line -Fairly Valued range.
4.33
P/OCF
Sonic Automotive Inc. (SAH) has a current P/OCF of 4.33. The 5-year average P/OCF is 5.89. The thresholds are as follows: Strongly Undervalued below 0.03, Undervalued between 0.03 and 2.96, Fairly Valued between 8.83 and 2.96, Overvalued between 8.83 and 11.76, and Strongly Overvalued above 11.76. The current Forward P/OCF of 4.33 falls within the Historic Trend Line -Fairly Valued range.
8.90
P/FCF
Sonic Automotive Inc. (SAH) has a current P/FCF of 8.90. The 5-year average P/FCF is 17.12. The thresholds are as follows: Strongly Undervalued below -28.69, Undervalued between -28.69 and -5.79, Fairly Valued between 40.02 and -5.79, Overvalued between 40.02 and 62.92, and Strongly Overvalued above 62.92. The current Forward P/FCF of 8.90 falls within the Historic Trend Line -Fairly Valued range.
Sonic Automotive Inc (SAH) has a current Price-to-Book (P/B) ratio of 2.05. Compared to its 3-year average P/B ratio of 2.10 , the current P/B ratio is approximately -2.32% higher. Relative to its 5-year average P/B ratio of 2.05, the current P/B ratio is about 0.26% higher. Sonic Automotive Inc (SAH) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.14%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 10.81% , the current FCF yield is about -100.00% lower.
2.07
P/B
Median3y
2.10
Median5y
2.05
19.13
FCF Yield
Median3y
5.14
Median5y
10.81
Competitors Valuation Multiple
The average P/S ratio for SAH's competitors is , providing a benchmark for relative valuation. Sonic Automotive Inc Corp (SAH) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 13.81%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SAH increased by 2.45% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.04 to 17.38.
The secondary factor is the Revenue Growth, contributed 13.81%to the performance.
Overall, the performance of SAH in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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