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 Fair zone, suggesting that its current forward PE ratio of 5.61 is considered Fairly compared with the five-year average of 7.41. The fair price of Cars.com Inc (CARS) is between 11.84 to 17.09 according to relative valuation methord.
Relative Value
Fair Zone
11.84-17.09
Current Price：12.14
Fair
5.61
PE
1Y
3Y
5Y
5.13
EV/EBITDA
Cars.com Inc. (CARS) has a current EV/EBITDA of 5.13. The 5-year average EV/EBITDA is 7.28. The thresholds are as follows: Strongly Undervalued below 5.10, Undervalued between 5.10 and 6.19, Fairly Valued between 8.37 and 6.19, Overvalued between 8.37 and 9.46, and Strongly Overvalued above 9.46. The current Forward EV/EBITDA of 5.13 falls within the Undervalued range.
13.07
EV/EBIT
Cars.com Inc. (CARS) has a current EV/EBIT of 13.07. The 5-year average EV/EBIT is 21.66. The thresholds are as follows: Strongly Undervalued below 12.15, Undervalued between 12.15 and 16.90, Fairly Valued between 26.41 and 16.90, Overvalued between 26.41 and 31.16, and Strongly Overvalued above 31.16. The current Forward EV/EBIT of 13.07 falls within the Undervalued range.
0.97
PS
Cars.com Inc. (CARS) has a current PS of 0.97. The 5-year average PS is 1.44. The thresholds are as follows: Strongly Undervalued below 0.87, Undervalued between 0.87 and 1.15, Fairly Valued between 1.73 and 1.15, Overvalued between 1.73 and 2.01, and Strongly Overvalued above 2.01. The current Forward PS of 0.97 falls within the Undervalued range.
4.36
P/OCF
Cars.com Inc. (CARS) has a current P/OCF of 4.36. The 5-year average P/OCF is 6.39. The thresholds are as follows: Strongly Undervalued below 3.73, Undervalued between 3.73 and 5.06, Fairly Valued between 7.73 and 5.06, Overvalued between 7.73 and 9.06, and Strongly Overvalued above 9.06. The current Forward P/OCF of 4.36 falls within the Undervalued range.
5.94
P/FCF
Cars.com Inc. (CARS) has a current P/FCF of 5.94. The 5-year average P/FCF is 7.36. The thresholds are as follows: Strongly Undervalued below 4.14, Undervalued between 4.14 and 5.75, Fairly Valued between 8.97 and 5.75, Overvalued between 8.97 and 10.58, and Strongly Overvalued above 10.58. The current Forward P/FCF of 5.94 falls within the Historic Trend Line -Fairly Valued range.
Cars.com Inc (CARS) has a current Price-to-Book (P/B) ratio of 1.52. Compared to its 3-year average P/B ratio of 2.29 , the current P/B ratio is approximately -33.61% higher. Relative to its 5-year average P/B ratio of 2.35, the current P/B ratio is about -35.29% higher. Cars.com Inc (CARS) has a Forward Free Cash Flow (FCF) yield of approximately 19.39%. Compared to its 3-year average FCF yield of 13.76%, the current FCF yield is approximately 40.99% lower. Relative to its 5-year average FCF yield of 13.75% , the current FCF yield is about 41.06% lower.
1.52
P/B
Median3y
2.29
Median5y
2.35
19.39
FCF Yield
Median3y
13.76
Median5y
13.75
Competitors Valuation Multiple
The average P/S ratio for CARS's competitors is 0.98, providing a benchmark for relative valuation. Cars.com Inc Corp (CARS) exhibits a P/S ratio of 0.97, which is -1.05% above the industry average. Given its robust revenue growth of 1.07%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CARS decreased by 29.80% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.02 to 25.75.
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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Frequently Asked Questions
Is Cars.com Inc (CARS) currently overvalued or undervalued?
Cars.com Inc (CARS) is now in the Fair zone, suggesting that its current forward PE ratio of 5.61 is considered Fairly compared with the five-year average of 7.41. The fair price of Cars.com Inc (CARS) is between 11.84 to 17.09 according to relative valuation methord.
What is Cars.com Inc (CARS) fair value?
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. The fair price of Cars.com Inc (CARS) is between 11.84 to 17.09 according to relative valuation methord.
How does CARS's valuation metrics compare to the industry average?
The average P/S ratio for CARS's competitors is 0.98, providing a benchmark for relative valuation. Cars.com Inc Corp (CARS) exhibits a P/S ratio of 0.97, which is -1.05% above the industry average. Given its robust revenue growth of 1.07%, this premium appears unsustainable.
What is the current P/B ratio for Cars.com Inc (CARS) as of Jan 07 2026?
As of Jan 07 2026, Cars.com Inc (CARS) has a P/B ratio of 1.52. This indicates that the market values CARS at 1.52 times its book value.
What is the current FCF Yield for Cars.com Inc (CARS) as of Jan 07 2026?
As of Jan 07 2026, Cars.com Inc (CARS) has a FCF Yield of 19.39%. This means that for every dollar of Cars.com Inc’s market capitalization, the company generates 19.39 cents in free cash flow.
What is the current Forward P/E ratio for Cars.com Inc (CARS) as of Jan 07 2026?
As of Jan 07 2026, Cars.com Inc (CARS) has a Forward P/E ratio of 5.61. This means the market is willing to pay $5.61 for every dollar of Cars.com Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Cars.com Inc (CARS) as of Jan 07 2026?
As of Jan 07 2026, Cars.com Inc (CARS) has a Forward P/S ratio of 0.97. This means the market is valuing CARS at $0.97 for every dollar of expected revenue over the next 12 months.