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Sonic Automotive, Inc. – New Car Dealers
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is one of the nation's largest automotive retailers.
Analysis Results
Intrinsic Value $0.01
Latest Price $50.58
Relative Value 598630% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -57.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -57.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 0.0965 0.0926
2023 0.0412 0.0379
2024 0.0176 0.0155
2025 0.00752 0.00637
2026 0.00321 0.00261
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 0.0963 million. This corresponds to a present value of 0.0751 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.155 million. Adding in the terminal value gives a total present value of 0.23 million.

There are presently 27.2 million outstanding shares, so the intrinsic value per share is 0.01.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,084,100,000
Current Cash 299,400,000
Current Liabilities 1,891,700,000
Current Debt 1,371,700,000
Non-Cash Working Capital (NCWC) 1,264,700,000
Change in NCWC -12,144,000
EBIT 538,500,000
Tax Provision 109,300,000
Depreciation and Amortization 93,800,000
Capital Expenditure -298,200,000
Unlevered Free Cash Flow 193,501,067
Current Assets 1,882,567,000
Current Cash 170,313,000
Current Liabilities 1,831,413,000
Current Debt 1,396,003,000
Non-Cash Working Capital (NCWC) 1,276,844,000
Change in NCWC -256,073,000
EBIT 303,956,000
Tax Provision 15,900,000
Depreciation and Amortization 87,575,000
Capital Expenditure -127,183,000
Unlevered Free Cash Flow 8,275,000
Current Assets 2,017,610,000
Current Cash 29,103,000
Current Liabilities 2,066,156,000
Current Debt 1,610,566,000
Non-Cash Working Capital (NCWC) 1,532,917,000
Change in NCWC -69,113,000
EBIT 328,474,000
Tax Provision 55,108,000
Depreciation and Amortization 89,954,000
Capital Expenditure -125,576,000
Unlevered Free Cash Flow 133,070,337
Current Assets 1,993,387,000
Current Cash 5,854,000
Current Liabilities 1,945,847,000
Current Debt 1,560,344,000
Non-Cash Working Capital (NCWC) 1,602,030,000
Change in NCWC -31,233,000
EBIT 207,177,000
Tax Provision 22,922,000
Depreciation and Amortization 94,234,000
Capital Expenditure -163,619,000
Unlevered Free Cash Flow 43,502,499
Current Assets 2,019,797,000
Current Cash 6,352,000
Current Liabilities 1,954,832,000
Current Debt 1,574,650,000
Non-Cash Working Capital (NCWC) 1,633,263,000
Change in NCWC -26,686,000
EBIT 220,959,000
Tax Provision 13,971,000
Depreciation and Amortization 89,587,000
Capital Expenditure -234,245,000
Unlevered Free Cash Flow 21,064,278
Current Assets 2,031,044,000
Current Cash 3,108,000
Current Liabilities 1,936,880,000
Current Debt 1,568,893,000
Non-Cash Working Capital (NCWC) 1,659,949,000
Change in NCWC -57,187,000
EBIT 240,972,000
Tax Provision 60,696,000
Depreciation and Amortization 78,181,000
Capital Expenditure -206,232,000
Unlevered Free Cash Flow -38,498,639
Current Assets 2,083,112,000
Current Cash 3,625,000
Current Liabilities 1,914,621,000
Current Debt 1,552,270,000
Non-Cash Working Capital (NCWC) 1,717,136,000
Change in NCWC 305,827,000
EBIT 235,248,000
Tax Provision 57,065,000
Depreciation and Amortization 69,442,000
Capital Expenditure -173,249,000
Unlevered Free Cash Flow 344,785,242
Current Assets 1,768,959,000
Current Cash 4,182,000
Current Liabilities 1,647,006,000
Current Debt 1,293,538,000
Non-Cash Working Capital (NCWC) 1,411,309,000
Change in NCWC 6,769,000
EBIT 240,207,000
Tax Provision 63,168,000
Depreciation and Amortization 59,419,000
Capital Expenditure -146,432,000
Unlevered Free Cash Flow 66,141,957
Current Assets 1,732,185,000
Current Cash 3,016,000
Current Liabilities 1,594,536,000
Current Debt 1,269,907,000
Non-Cash Working Capital (NCWC) 1,404,540,000
Change in NCWC 123,228,000
EBIT 244,475,000
Tax Provision 44,343,000
Depreciation and Amortization 55,608,000
Capital Expenditure -157,617,000
Unlevered Free Cash Flow 181,670,818
Current Assets 1,611,033,000
Current Cash 3,371,000
Current Liabilities 1,524,155,000
Current Debt 1,197,805,000
Non-Cash Working Capital (NCWC) 1,281,312,000
Change in NCWC 379,222,000
EBIT 240,842,000
Tax Provision 49,972,000
Depreciation and Amortization 47,479,000
Capital Expenditure -95,376,000
Unlevered Free Cash Flow 486,950,680

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