CARS Valuation

Cars.com Inc

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12.460

+0.41(3.402%)1D

Overview
Forecast
Valuation
Earnings

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 5.85 is considered Undervalued compared with the five-year average of 7.43. The fair price of Cars.com Inc (CARS) is between 17.57 to 22.55 according to relative valuation methord. Compared to the current price of 12.05 USD , Cars.com Inc is Undervalued By 31.42%.

Relative Value

Fair Zone

17.57-22.55

Current Price：12.05

31.42%

Undervalued

5.76

Trailing

Forward

5.51

EV/EBITDA

Cars.com Inc. (CARS) has a current EV/EBITDA of 5.51. The 5-year average EV/EBITDA is 7.42. The thresholds are as follows: Strongly Undervalued below 5.54, Undervalued between 5.54 and 6.48, Fairly Valued between 8.36 and 6.48, Overvalued between 8.36 and 9.30, and Strongly Overvalued above 9.30. The current Forward EV/EBITDA of 5.51 falls within the Strongly Undervalued range.

15.08

EV/EBIT

Cars.com Inc. (CARS) has a current EV/EBIT of 15.08. The 5-year average EV/EBIT is 22.84. The thresholds are as follows: Strongly Undervalued below 12.80, Undervalued between 12.80 and 17.82, Fairly Valued between 27.86 and 17.82, Overvalued between 27.86 and 32.88, and Strongly Overvalued above 32.88. The current Forward EV/EBIT of 15.08 falls within the Undervalued range.

1.02

Cars.com Inc. (CARS) has a current PS of 1.02. The 5-year average PS is 1.45. The thresholds are as follows: Strongly Undervalued below 0.89, Undervalued between 0.89 and 1.17, Fairly Valued between 1.73 and 1.17, Overvalued between 1.73 and 2.00, and Strongly Overvalued above 2.00. The current Forward PS of 1.02 falls within the Undervalued range.

4.51

P/OCF

Cars.com Inc. (CARS) has a current P/OCF of 4.51. The 5-year average P/OCF is 6.44. The thresholds are as follows: Strongly Undervalued below 3.89, Undervalued between 3.89 and 5.17, Fairly Valued between 7.72 and 5.17, Overvalued between 7.72 and 9.00, and Strongly Overvalued above 9.00. The current Forward P/OCF of 4.51 falls within the Undervalued range.

5.14

P/FCF

Cars.com Inc. (CARS) has a current P/FCF of 5.14. The 5-year average P/FCF is 7.34. The thresholds are as follows: Strongly Undervalued below 4.07, Undervalued between 4.07 and 5.71, Fairly Valued between 8.98 and 5.71, Overvalued between 8.98 and 10.62, and Strongly Overvalued above 10.62. The current Forward P/FCF of 5.14 falls within the Undervalued range.

Cars.com Inc (CARS) has a current Price-to-Book (P/B) ratio of 1.57. Compared to its 3-year average P/B ratio of 2.39 , the current P/B ratio is approximately -34.50% higher. Relative to its 5-year average P/B ratio of 2.39, the current P/B ratio is about -34.39% higher. Cars.com Inc (CARS) has a Forward Free Cash Flow (FCF) yield of approximately 16.90%. Compared to its 3-year average FCF yield of 12.89%, the current FCF yield is approximately 31.13% lower. Relative to its 5-year average FCF yield of 13.47% , the current FCF yield is about 25.43% lower.

1.54

P/B

Median3y

2.39

Median5y

2.39

17.85

FCF Yield

Median3y

12.89

Median5y

13.47

Competitors Valuation Multiple

The average P/S ratio for CARS's competitors is 0.71, providing a benchmark for relative valuation. Cars.com Inc Corp (CARS) exhibits a P/S ratio of 1.02, which is 43.70% above the industry average. Given its robust revenue growth of -0.09%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Getty Images Holdings Inc

Performance Decomposition

Market capitalization of CARS decreased by 30.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.65 to 19.11.

The secondary factor is the Revenue Growth, contributed -0.09%to the performance.

Overall, the performance of CARS in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.09%

178.89M → 178.74M

Revenue Growth

-38.36%

6.36 → 3.92

Margin Expansion

8.29%

17.65 → 19.11

P/E Change

-30.16%