Is Sonic Automotive, Inc. overvalued or undervalued?

Jun 25 2025 08:24 AM IST
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As of April 24, 2025, Sonic Automotive, Inc. is considered very attractive in valuation due to its undervalued metrics, including a P/E ratio of 21, a strong dividend yield of 88.59%, a ROE of 22.58%, and a year-to-date stock performance of 26.65% compared to the S&P 500's 2.44%.
As of 24 April 2025, Sonic Automotive, Inc. has moved from an attractive to a very attractive valuation grade. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 21, an EV to EBITDA of 13.17, and a PEG ratio of 2.63.

In comparison to peers, Sonic Automotive's P/E ratio of 21 is notably higher than Rush Enterprises, Inc. at 13.16, which is rated fair, and slightly lower than PriceSmart, Inc. at 23.21, also rated fair. Additionally, Sonic's dividend yield of 88.59% and a ROE of 22.58% further support its strong valuation. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 26.65% compared to the S&P's 2.44%, reinforcing the notion of its undervaluation.
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