Sonic Automotive, Inc. (SAH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-188.3%

-$55.55

vs $62.93 price

Levered DCF

$352.97

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

3.16

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17.72×	10.01×	11.04×	21.52×	5.87×	-32.41×	9.23×	11.37×
P/B	1.97×	2.03×	2.21×	2.13×	1.9×	2.01×	1.41×	0.71×
P/S	0.14×	0.15×	0.14×	0.14×	0.17×	0.17×	0.13×	0.06×
EV / EBITDA	12.57×	10.67×	10.59×	12.06×	8.28×	32.92×	10.07×	11.25×
Gross margin	15.7%	15.4%	15.6%	16.5%	15.4%	14.6%	14.5%	14.5%
Operating margin	3.6%	3.3%	3.5%	4.5%	4.3%	0.3%	2.9%	1.8%
Net margin	0.8%	1.5%	1.2%	0.6%	2.8%	-0.5%	1.4%	0.5%
Current ratio	1.09×	1.09×	1.1×	1.2×	1.1×	1.03×	0.98×	1.02×
Debt / equity	3.96×	3.89×	4.33×	3.89×	3.08×	3.01×	2.79×	3.01×
Interest coverage	2.78×	2.28×	2.78×	5.14×	8.52×	0.49×	2.95×	1.73×
Dividend yield	2.3%	1.9%	2.0%	1.8%	0.9%	1.0%	1.2%	1.7%
Payout ratio	41.1%	18.9%	22.4%	39.0%	5.2%	-33.3%	10.8%	19.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.1%	20.3%	20.0%	9.9%	32.4%	-6.3%	15.3%	6.3%
Return on invested capital	6.9%	7.4%	7.6%	6.6%	9.1%	1.0%	6.1%	3.6%
Return on assets	2.0%	3.7%	3.3%	1.8%	7.0%	-1.4%	3.5%	1.4%
Free cash flow yield	19.9%	-3.6%	-11.1%	9.4%	0.4%	9.4%	3.4%	-3.4%
Earnings yield	5.6%	10.0%	9.1%	4.6%	17.0%	-3.1%	10.8%	8.8%
Enterprise value	$6.3B	$6.2B	$5.8B	$5.2B	$5.1B	$3.9B	$3.9B	$3.1B
Net debt / EBITDA	8.39×	6.98×	7×	7.61×	4.93×	19.15×	6.66×	9.09×
Cash conversion cycle (days)	65	67	56	46	51	64	72	77