/
DCF Valuation
Base-case fair value
$241.84
Intrinsic $322.45 · 25% MOS
Current price: $78.13
Base-case summary
Our base-case DCF for Sonic Automotive Inc (SAH) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 100.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $265M in trailing free cash flow, this produces an intrinsic value of $322.45 per share. A 25% safety margin gives a fair value of $241.84, suggesting the stock is currently 210% undervalued against the $78.13 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$265M
Cash & equivalents
$6M
Total debt
$2.4B
Shares outstanding
34M