Sonic Automotive operates as an automotive retailer in the United States. It operates through two segments, Franchised Dealerships and EchoPark. The company was founded in 1997 and is based in Charlotte, North Carolina.
SAH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sonic Automotive Inc. To summarize, we found that Sonic Automotive Inc ranked in the 80th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Sonic Automotive Inc ended up being:
44% of the company's capital comes from equity, which is greater than merely 19.64% of stocks in our cash flow based forecasting set.
Sonic Automotive Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 14. This value is greater than 85.21% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Sonic Automotive (SAH) has purchased ~4 acres of land adjacent to the company’s Charlotte, North Carolina, EchoPark retail hub location.The expanded property will accommodate ~400 additional inventory parking spaces, bringing the total inventory capacity at Echopark retail hub location to ~1k vehicles....
Sonic Automotive (SAH) has opened its second EchoPark store in the Houston market and 11th retail hub location nationwide, demonstrating it’s commitment for expansion of EchoPark to sell over half a million vehicles annually by 2025 through a 140-plus point nationwide distribution network.The company has previously announced plans to add...
LOS ANGELES, CA / ACCESSWIRE / July 31, 2020 / The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors in Sonic Automotive, Inc.