SAH Valuation

Sonic Automotive Inc

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61.750

+2.07(3.468%)1D

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 Undervalued zone, suggesting that its current forward PE ratio of 8.81 is considered Undervalued compared with the five-year average of 7.93. The fair price of Sonic Automotive Inc (SAH) is between 62.90 to 88.63 according to relative valuation methord. Compared to the current price of 61.75 USD , Sonic Automotive Inc is Undervalued By 1.84%.

Relative Value

Fair Zone

62.90-88.63

Current Price：61.75

1.84%

Undervalued

8.81

Trailing

Forward

9.24

EV/EBITDA

Sonic Automotive Inc. (SAH) has a current EV/EBITDA of 9.24. The 5-year average EV/EBITDA is 8.15. The thresholds are as follows: Strongly Undervalued below 4.54, Undervalued between 4.54 and 6.35, Fairly Valued between 9.96 and 6.35, Overvalued between 9.96 and 11.77, and Strongly Overvalued above 11.77. The current Forward EV/EBITDA of 9.24 falls within the Historic Trend Line -Fairly Valued range.

11.53

EV/EBIT

Sonic Automotive Inc. (SAH) has a current EV/EBIT of 11.53. The 5-year average EV/EBIT is 9.86. The thresholds are as follows: Strongly Undervalued below 5.54, Undervalued between 5.54 and 7.70, Fairly Valued between 12.01 and 7.70, Overvalued between 12.01 and 14.17, and Strongly Overvalued above 14.17. The current Forward EV/EBIT of 11.53 falls within the Historic Trend Line -Fairly Valued range.

59.68

Sonic Automotive Inc. (SAH) has a current PS of 59.68. The 5-year average PS is 0.54. The thresholds are as follows: Strongly Undervalued below -9.42, Undervalued between -9.42 and -4.44, Fairly Valued between 5.52 and -4.44, Overvalued between 5.52 and 10.50, and Strongly Overvalued above 10.50. The current Forward PS of 59.68 falls within the Strongly Overvalued range.

4.49

P/OCF

Sonic Automotive Inc. (SAH) has a current P/OCF of 4.49. The 5-year average P/OCF is 5.93. The thresholds are as follows: Strongly Undervalued below 0.05, Undervalued between 0.05 and 2.99, Fairly Valued between 8.87 and 2.99, Overvalued between 8.87 and 11.81, and Strongly Overvalued above 11.81. The current Forward P/OCF of 4.49 falls within the Historic Trend Line -Fairly Valued range.

8.27

P/FCF

Sonic Automotive Inc. (SAH) has a current P/FCF of 8.27. The 5-year average P/FCF is 18.24. The thresholds are as follows: Strongly Undervalued below -29.83, Undervalued between -29.83 and -5.80, Fairly Valued between 42.27 and -5.80, Overvalued between 42.27 and 66.31, and Strongly Overvalued above 66.31. The current Forward P/FCF of 8.27 falls within the Historic Trend Line -Fairly Valued range.

Sonic Automotive Inc (SAH) has a current Price-to-Book (P/B) ratio of 1.91. Compared to its 3-year average P/B ratio of 1.86 , the current P/B ratio is approximately 2.72% higher. Relative to its 5-year average P/B ratio of 1.91, the current P/B ratio is about -0.15% higher. Sonic Automotive Inc (SAH) has a Forward Free Cash Flow (FCF) yield of approximately 20.59%. Compared to its 3-year average FCF yield of 5.57%, the current FCF yield is approximately 269.85% lower. Relative to its 5-year average FCF yield of 10.80% , the current FCF yield is about 90.64% lower.

1.91

P/B

Median3y

1.86

Median5y

1.91

20.59

FCF Yield

Median3y

5.57

Median5y

10.80

Competitors Valuation Multiple

The average P/S ratio for SAH's competitors is 28.57, providing a benchmark for relative valuation. Sonic Automotive Inc Corp (SAH) exhibits a P/S ratio of 59.68, which is 108.87% 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

National Vision Holdings Inc

Advance Auto Parts Inc

Sally Beauty Holdings Inc

Savers Value Village Inc

7.90

8.14%

1.28B

Performance Decomposition

Market capitalization of SAH decreased by 10.22% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.26 to 15.98.

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.

13.81%

3.49B → 3.97B

Revenue Growth

-44.60%

2.13 → 1.18

Margin Expansion

20.57%

13.26 → 15.98

P/E Change

-10.22%