Sonic Automotive Stock Market Value
| SAH Stock | USD 51.12 0.22 0.43% |
| Symbol | Sonic |
Sonic Automotive Price To Book Ratio
Is Sonic Automotive's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sonic Automotive. If investors know Sonic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sonic Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.14) | Dividend Share 1.16 | Earnings Share 4.97 | Revenue Per Share 410.64 | Quarterly Revenue Growth (0) |
The market value of Sonic Automotive is measured differently than its book value, which is the value of Sonic that is recorded on the company's balance sheet. Investors also form their own opinion of Sonic Automotive's value that differs from its market value or its book value, called intrinsic value, which is Sonic Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sonic Automotive's market value can be influenced by many factors that don't directly affect Sonic Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sonic Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sonic Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sonic Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Sonic Automotive 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Sonic Automotive's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Sonic Automotive.
| 05/06/2022 |
| 04/25/2024 |
If you would invest 0.00 in Sonic Automotive on May 6, 2022 and sell it all today you would earn a total of 0.00 from holding Sonic Automotive or generate 0.0% return on investment in Sonic Automotive over 720 days. Sonic Automotive is related to or competes with Motorcar Parts, Standard, Stoneridge, Douglas Dynamics, Dorman Products, Superior Industries, and Gentherm. Sonic Automotive, Inc. operates as an automotive retailer in the United States More
Sonic Automotive Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Sonic Automotive's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Sonic Automotive upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.05) | |||
| Maximum Drawdown | 8.65 | |||
| Value At Risk | (3.42) | |||
| Potential Upside | 3.72 |
Sonic Automotive Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Sonic Automotive's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Sonic Automotive's standard deviation. In reality, there are many statistical measures that can use Sonic Automotive historical prices to predict the future Sonic Automotive's volatility.| Risk Adjusted Performance | 0.0033 | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.29) | |||
| Treynor Ratio | (0.01) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Sonic Automotive's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Sonic Automotive Backtested Returns
We consider Sonic Automotive very steady. Sonic Automotive owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.006, which indicates the firm had a 0.006% return per unit of risk over the last 3 months. We have found twenty-three technical indicators for Sonic Automotive, which you can use to evaluate the volatility of the company. Please validate Sonic Automotive's Risk Adjusted Performance of 0.0033, variance of 4.61, and Coefficient Of Variation of (16,420) to confirm if the risk estimate we provide is consistent with the expected return of 0.0129%. The entity has a beta of 1.91, which indicates a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Sonic Automotive will likely underperform. Sonic Automotive right now has a risk of 2.13%. Please validate Sonic Automotive skewness, as well as the relationship between the rate of daily change and price action indicator , to decide if Sonic Automotive will be following its existing price patterns.
Auto-correlation | 0.52 |
Modest predictability
Sonic Automotive has modest predictability. Overlapping area represents the amount of predictability between Sonic Automotive time series from 6th of May 2022 to 1st of May 2023 and 1st of May 2023 to 25th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Sonic Automotive price movement. The serial correlation of 0.52 indicates that about 52.0% of current Sonic Automotive price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.52 | |
| Spearman Rank Test | 0.52 | |
| Residual Average | 0.0 | |
| Price Variance | 19.49 |
Sonic Automotive lagged returns against current returns
Autocorrelation, which is Sonic Automotive stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Sonic Automotive's stock expected returns. We can calculate the autocorrelation of Sonic Automotive returns to help us make a trade decision. For example, suppose you find that Sonic Automotive has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Sonic Automotive regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Sonic Automotive stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Sonic Automotive stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Sonic Automotive stock over time.
Current vs Lagged Prices |
| Timeline |
Sonic Automotive Lagged Returns
When evaluating Sonic Automotive's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Sonic Automotive stock have on its future price. Sonic Automotive autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Sonic Automotive autocorrelation shows the relationship between Sonic Automotive stock current value and its past values and can show if there is a momentum factor associated with investing in Sonic Automotive.
Regressed Prices |
| Timeline |
Sonic Automotive Investors Sentiment
The influence of Sonic Automotive's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Sonic. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Sonic Automotive's public news can be used to forecast risks associated with an investment in Sonic. The trend in average sentiment can be used to explain how an investor holding Sonic can time the market purely based on public headlines and social activities around Sonic Automotive. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Sonic Automotive's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Sonic Automotive's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Sonic Automotive's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Sonic Automotive.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Sonic Automotive in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Sonic Automotive's short interest history, or implied volatility extrapolated from Sonic Automotive options trading.
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When determining whether Sonic Automotive offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sonic Automotive's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sonic Automotive Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sonic Automotive Stock:Check out Sonic Automotive Correlation, Sonic Automotive Volatility and Sonic Automotive Alpha and Beta module to complement your research on Sonic Automotive. For more detail on how to invest in Sonic Stock please use our How to Invest in Sonic Automotive guide.Note that the Sonic Automotive information on this page should be used as a complementary analysis to other Sonic Automotive's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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When running Sonic Automotive's price analysis, check to measure Sonic Automotive's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sonic Automotive is operating at the current time. Most of Sonic Automotive's value examination focuses on studying past and present price action to predict the probability of Sonic Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sonic Automotive's price. Additionally, you may evaluate how the addition of Sonic Automotive to your portfolios can decrease your overall portfolio volatility.
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Sonic Automotive technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.