CARS Relative Valuation
CARS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CARS is overvalued; if below, it's undervalued.
Historical Valuation
Cars.com Inc (CARS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 5.76 is considered Undervalued compared with the five-year average of 7.43. The fair price of Cars.com Inc (CARS) is between 13.99 to 19.07 according to relative valuation methord. Compared to the current price of 12.16 USD , Cars.com Inc is Undervalued By 13.04%.
Relative Value
Fair Zone
13.99-19.07
Current Price：12.16
13.04%
Undervalued
5.65
PE
1Y
3Y
5Y
Trailing
Forward
5.22
EV/EBITDA
Cars.com Inc. (CARS) has a current EV/EBITDA of 5.22. The 5-year average EV/EBITDA is 7.32. The thresholds are as follows: Strongly Undervalued below 5.20, Undervalued between 5.20 and 6.26, Fairly Valued between 8.38 and 6.26, Overvalued between 8.38 and 9.44, and Strongly Overvalued above 9.44. The current Forward EV/EBITDA of 5.22 falls within the Undervalued range.
13.30
EV/EBIT
Cars.com Inc. (CARS) has a current EV/EBIT of 13.30. The 5-year average EV/EBIT is 21.87. The thresholds are as follows: Strongly Undervalued below 12.51, Undervalued between 12.51 and 17.19, Fairly Valued between 26.55 and 17.19, Overvalued between 26.55 and 31.23, and Strongly Overvalued above 31.23. The current Forward EV/EBIT of 13.30 falls within the Undervalued range.
1.00
PS
Cars.com Inc. (CARS) has a current PS of 1.00. The 5-year average PS is 1.45. The thresholds are as follows: Strongly Undervalued below 0.88, Undervalued between 0.88 and 1.16, Fairly Valued between 1.73 and 1.16, Overvalued between 1.73 and 2.01, and Strongly Overvalued above 2.01. The current Forward PS of 1.00 falls within the Undervalued range.
4.48
P/OCF
Cars.com Inc. (CARS) has a current P/OCF of 4.48. The 5-year average P/OCF is 6.41. The thresholds are as follows: Strongly Undervalued below 3.78, Undervalued between 3.78 and 5.10, Fairly Valued between 7.73 and 5.10, Overvalued between 7.73 and 9.04, and Strongly Overvalued above 9.04. The current Forward P/OCF of 4.48 falls within the Undervalued range.
6.10
P/FCF
Cars.com Inc. (CARS) has a current P/FCF of 6.10. The 5-year average P/FCF is 7.37. The thresholds are as follows: Strongly Undervalued below 4.15, Undervalued between 4.15 and 5.76, Fairly Valued between 8.97 and 5.76, Overvalued between 8.97 and 10.58, and Strongly Overvalued above 10.58. The current Forward P/FCF of 6.10 falls within the Historic Trend Line -Fairly Valued range.
Cars.com Inc (CARS) has a current Price-to-Book (P/B) ratio of 1.56. Compared to its 3-year average P/B ratio of 2.31 , the current P/B ratio is approximately -32.43% higher. Relative to its 5-year average P/B ratio of 2.37, the current P/B ratio is about -33.90% higher. Cars.com Inc (CARS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 13.59%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 13.66% , the current FCF yield is about -100.00% lower.
1.53
P/B
Median3y
2.31
Median5y
2.37
18.88
FCF Yield
Median3y
13.59
Median5y
13.66
Competitors Valuation Multiple
The average P/S ratio for CARS's competitors is , providing a benchmark for relative valuation. Cars.com Inc Corp (CARS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 1.07%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CARS decreased by 30.06% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.19 to 25.92.
The secondary factor is the Revenue Growth, contributed 1.07%to the performance.
Overall, the performance of CARS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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