Cars.com Inc.

NYSE:CARS Stock Report

Market Cap: US$1.2b

Cars.com Valuation

Is CARS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CARS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CARS ($18.72) is trading below our estimate of fair value ($59.93)

Significantly Below Fair Value: CARS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CARS?

Key metric: As CARS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CARS. This is calculated by dividing CARS's market cap by their current earnings.
What is CARS's PE Ratio?
PE Ratio30.9x
EarningsUS$39.23m
Market CapUS$1.21b

Price to Earnings Ratio vs Peers

How does CARS's PE Ratio compare to its peers?

The above table shows the PE ratio for CARS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.8x
SSTK Shutterstock
29.3x29.8%US$1.1b
VMEO Vimeo
32.4x14.8%US$1.1b
GETY Getty Images Holdings
23.5x16.5%US$1.3b
MOMO Hello Group
6.1x9.3%US$1.2b
CARS Cars.com
30.9x20.5%US$1.2b

Price-To-Earnings vs Peers: CARS is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the peer average (22.8x).

Price to Earnings Ratio vs Industry

How does CARS's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CHR Cheer Holding
0.8xn/aUS$26.95m
MI NFT
2.9xn/aUS$13.47m
No more companies available in this PE range
CARS 30.9xIndustry Avg. 22.4xNo. of Companies5PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CARS is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the US Interactive Media and Services industry average (22.4x).

Price to Earnings Ratio vs Fair Ratio

What is CARS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CARS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.9x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: CARS is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CARS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$18.72
US$22.00
+17.5%
11.9%US$26.00US$18.00n/a7
Nov ’25US$16.03
US$21.21
+32.3%
16.1%US$26.00US$16.50n/a7
Oct ’25US$16.60
US$21.36
+28.7%
15.1%US$26.00US$16.50n/a7
Sep ’25US$17.84
US$21.36
+19.7%
15.1%US$26.00US$16.50n/a7
Aug ’25US$19.82
US$23.50
+18.6%
12.7%US$27.00US$18.00n/a7
Jul ’25US$18.79
US$23.50
+25.1%
12.7%US$27.00US$18.00n/a7
Jun ’25US$20.23
US$23.50
+16.2%
12.7%US$27.00US$18.00n/a7
May ’25US$16.59
US$24.08
+45.2%
11.8%US$27.00US$18.00n/a6
Apr ’25US$17.09
US$24.08
+40.9%
11.8%US$27.00US$18.00n/a6
Mar ’25US$18.60
US$23.29
+25.2%
14.1%US$27.00US$17.50n/a7
Feb ’25US$17.92
US$23.36
+30.3%
14.2%US$27.00US$17.50n/a7
Jan ’25US$18.97
US$23.36
+23.1%
14.2%US$27.00US$17.50n/a7
Dec ’24US$18.46
US$23.36
+26.5%
14.2%US$27.00US$17.50n/a7
Nov ’24US$15.05
US$23.44
+55.7%
12.0%US$26.00US$17.50US$16.038
Oct ’24US$16.86
US$23.31
+38.3%
11.9%US$26.00US$17.50US$16.608
Sep ’24US$18.74
US$23.79
+26.9%
11.1%US$26.00US$17.50US$17.847
Aug ’24US$22.67
US$22.57
-0.4%
13.2%US$26.00US$16.00US$19.827
Jul ’24US$19.82
US$22.00
+11.0%
12.9%US$25.00US$16.00US$18.796
Jun ’24US$18.17
US$21.80
+20.0%
14.0%US$25.00US$16.00US$20.235
May ’24US$19.75
US$22.04
+11.6%
13.4%US$25.00US$16.00US$16.596
Apr ’24US$19.30
US$22.04
+14.2%
13.4%US$25.00US$16.00US$17.096
Mar ’24US$18.87
US$21.38
+13.3%
20.4%US$25.00US$12.00US$18.606
Feb ’24US$17.15
US$18.93
+10.4%
19.7%US$25.00US$12.00US$17.927
Jan ’24US$13.77
US$18.93
+37.5%
19.7%US$25.00US$12.00US$18.977
Dec ’23US$15.05
US$18.93
+25.8%
19.7%US$25.00US$12.00US$18.467
Nov ’23US$13.82
US$19.43
+40.6%
21.8%US$25.00US$12.00US$15.057

Analyst Forecast: Target price is less than 20% higher than the current share price.

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