PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Sonic Automotive's PE Ratio without NRI is 7.43. Sonic Automotive's 5-Year EBITDA growth rate is 21.10%. Therefore, Sonic Automotive's PEG Ratio for today is 0.35.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Sonic Automotive's PEG Ratio or its related term are showing as below:
SAH'
s PEG Ratio Range Over the Past 10 Years
Min: 0.23 Med: 0.84 Max: 5.28
Current: 0.35
During the past 13 years, Sonic Automotive's highest PEG Ratio was 5.28. The lowest was 0.23. And the median was 0.84.
SAH's PEG Ratio is ranked better than 86.96% of 514
companies
in the Vehicles & Parts industry
Industry Median: 1.235
vs SAH: 0.35
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Sonic Automotive PEG Ratio Historical Data
The historical data trend for Sonic Automotive's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, Sonic Automotive's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sonic Automotive PEG Ratio Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Sonic Automotive's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Sonic Automotive's PEG Ratio falls into.
Sonic Automotive PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Sonic Automotive's PEG Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Sonic Automotive (NYSE:SAH) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Sonic Automotive PEG Ratio Related Terms
Thank you for viewing the detailed overview of Sonic Automotive's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sonic Automotive (Sonic Automotive) Business Description
Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 108 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 18 EchoPark and 7 Northwest Motorsports used-vehicle stores, and 16 collision centers. The company derives revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 83% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 56% of new-vehicle revenue. BMW is the largest brand at about 26%. 2022's revenue was $14 billion, with EchoPark's portion totaling $2.5 billion. Sonic bought RFJ Auto in December 2021, which added $3.2 billion in sales.
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