We rank Sonic Automotive #3.  We estimate Sonic will be worth ~$68 in six years from now (sometime in 2012) as the stock trades at 10.5x our 2012 EPS estimate of $6.47.  If the stock reaches these levels (earnings and multiple,) it represents more than 210% upside from Friday’s closing stock price ($21.65 on 07/07/06.)  Using an 8% discount rate (over the course of the next six years,) based on our 2012 earnings forecast, we calculate a net present value of $43.  This means that based on what we think the company will earn in 2012, the stock should be worth $43 today, a 97% premium from current levels.  Like Lithia, there is obviously something the market is looking at that we feel diffe ...

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Related Companies: Sonic Automotive