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:
Below please find a table outlining a discounted cash flow forecast for SAH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sonic Automotive Inc ranked in the 79th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 479.83%. In terms of the factors that were most noteworthy in this DCF analysis for SAH, they are:
43% of the company's capital comes from equity, which is greater than merely 21.82% of stocks in our cash flow based forecasting set.
Sonic Automotive Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.21. This coverage rate is greater than that of just 24.47% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Sonic Automotive Inc experienced a tax rate of about 39% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 90.14% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NVFY, DISCA, PRTY, SBGI, and DENN can be thought of as valuation peers to SAH, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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.