Sonic Automotive Valuation

SAH Stock  USD 56.94  0.75  1.33%   
At this time, the company appears to be fairly valued. Sonic Automotive has a current Real Value of $55.79 per share. The regular price of the company is $56.94. Our model measures the value of Sonic Automotive from inspecting the company fundamentals such as Operating Margin of 0.03 %, return on equity of 0.2, and Shares Outstanding of 22.07 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and trading away overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
2.1483
Enterprise Value
5.8 B
Enterprise Value Ebitda
10.2941
Price Sales
0.1333
Forward PE
9.1491
Fairly Valued
Today
56.94
Please note that Sonic Automotive's price fluctuation is very steady at this time. Calculation of the real value of Sonic Automotive is based on 3 months time horizon. Increasing Sonic Automotive's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sonic Automotive is useful when determining the fair value of the Sonic stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sonic Automotive. Since Sonic Automotive is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sonic Stock. However, Sonic Automotive's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  56.94 Real  55.79 Target  52.67 Hype  56.94 Naive  57.76
The real value of Sonic Stock, also known as its intrinsic value, is the underlying worth of Sonic Automotive Company, which is reflected in its stock price. It is based on Sonic Automotive's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Sonic Automotive's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Sonic Automotive's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
55.79
Real Value
58.01
Upside
Estimating the potential upside or downside of Sonic Automotive helps investors to forecast how Sonic stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Sonic Automotive more accurately as focusing exclusively on Sonic Automotive's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.051.341.66
Details
Hype
Prediction
LowEstimatedHigh
54.7256.9459.16
Details
Potential
Annual Dividend
LowForecastedHigh
0.800.830.85
Details
7 Analysts
Consensus
LowTarget PriceHigh
47.9352.6758.46
Details

Sonic Automotive Investments

(204.75 Million)

Sonic Automotive Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Sonic Automotive's current stock value. Our valuation model uses many indicators to compare Sonic Automotive value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sonic Automotive competition to find correlations between indicators driving Sonic Automotive's intrinsic value. More Info.
Sonic Automotive is currently regarded as top stock in beta category among related companies. It is currently regarded as top stock in price to book category among related companies fabricating about  1.18  of Price To Book per Beta. The current Price To Book Ratio is estimated to decrease to 1.21. Comparative valuation analysis is a catch-all model that can be used if you cannot value Sonic Automotive by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sonic Automotive's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sonic Automotive's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Sonic Automotive's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Sonic Automotive and how it compares across the competition.

About Sonic Automotive Valuation

The stock valuation mechanism determines the current worth of Sonic Automotive on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sonic Automotive. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sonic Automotive based exclusively on its fundamental and basic technical indicators. By analyzing Sonic Automotive's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Sonic Automotive's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Sonic Automotive. We calculate exposure to Sonic Automotive's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sonic Automotive's related companies.
Last ReportedProjected for 2024
Gross Profit2.1 B1.3 B
Pretax Profit Margin 0.02  0.01 
Operating Profit Margin 0.04  0.02 
Net Profit Margin 0.01  0.01 
Gross Profit Margin 0.15  0.12 

8 Steps to conduct Sonic Automotive's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Sonic Automotive's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Sonic Automotive's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Sonic Automotive's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Sonic Automotive's revenue streams: Identify Sonic Automotive's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Sonic Automotive's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Sonic Automotive's growth potential: Evaluate Sonic Automotive's management, business model, and growth potential.
  • Determine Sonic Automotive's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Sonic Automotive's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Sonic Automotive's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Sonic Automotive's value is low or high relative to the company's performance and growth projections. Determining the market value of Sonic Automotive can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Sonic Automotive represents a small ownership stake in the entity. As a stockholder of Sonic, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Sonic Automotive Dividends Analysis For Valuation

As of now, Sonic Automotive's Dividend Yield is increasing as compared to previous years. The Sonic Automotive's current Dividend Payout Ratio is estimated to increase to 0.28, while Dividends Paid is forecasted to increase to (38 M). . As of now, Sonic Automotive's Retained Earnings are increasing as compared to previous years. The Sonic Automotive's current Retained Earnings Total Equity is estimated to increase to about 1.3 B, while Price Earnings To Growth Ratio is projected to decrease to 0.09.
Last ReportedProjected for 2024
Dividends Paid-40 M-38 M
Dividend Yield 0.02  0.04 
Dividend Payout Ratio 0.22  0.28 
Dividend Paid And Capex Coverage Ratio 0.32  0.34 
There are various types of dividends Sonic Automotive can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Sonic shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Sonic Automotive directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Sonic pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Sonic Automotive by the value of the dividends paid out.

Sonic Automotive Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Sonic Automotive does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding35.9 M
Quarterly Earnings Growth Y O Y-0.139
Forward Price Earnings9.1491

Sonic Automotive Current Valuation Indicators

Valuation refers to the process of determining the present value of Sonic Automotive and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sonic we look at many different elements of the entity such as Sonic's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Sonic Automotive's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Sonic Automotive's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Sonic Automotive, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Sonic Automotive's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Sonic Automotive's worth.
When determining whether Sonic Automotive offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sonic Automotive's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sonic Automotive Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sonic Automotive Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sonic Automotive. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For more detail on how to invest in Sonic Stock please use our How to Invest in Sonic Automotive guide.
Note that the Sonic Automotive information on this page should be used as a complementary analysis to other Sonic Automotive's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.

Complementary Tools for Sonic Stock analysis

When running Sonic Automotive's price analysis, check to measure Sonic Automotive's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sonic Automotive is operating at the current time. Most of Sonic Automotive's value examination focuses on studying past and present price action to predict the probability of Sonic Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sonic Automotive's price. Additionally, you may evaluate how the addition of Sonic Automotive to your portfolios can decrease your overall portfolio volatility.
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Is Sonic Automotive's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sonic Automotive. If investors know Sonic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sonic Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.14)
Dividend Share
1.16
Earnings Share
4.97
Revenue Per Share
410.64
Quarterly Revenue Growth
(0)
The market value of Sonic Automotive is measured differently than its book value, which is the value of Sonic that is recorded on the company's balance sheet. Investors also form their own opinion of Sonic Automotive's value that differs from its market value or its book value, called intrinsic value, which is Sonic Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sonic Automotive's market value can be influenced by many factors that don't directly affect Sonic Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sonic Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sonic Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sonic Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.