Cars.com Inc (CARS) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Cars.com Inc stock $8.47, price $13.35, that is 36.6% below the price, quality 64 out of 100. Rating: strongly overvalued. Calculated from audited financials with 19 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $7.58 – $22.81 · fair‑value band $5.97 – $11.64 · the $13.35 price screens above the $8.47 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Cars.com Inc., an audience-driven technology company, provides solutions for the automotive industry in the United States.
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The company offers marketplace through Cars.com that allows OEMs and dealers to merchandise their inventory, as well as provides reputation management technology and digital financing tools.
It also operates dealer websites to transform automotive retail processes; and trade and appraisal product, including AccuTrade, which uses demand data and diagnostic scans to determine the right trade-in offer for every VIN in minutes.
In addition, the company offers media solution, such as Cars Social, allows dealers to target and serve native advertisements displaying real-time inventory to in-market car shoppers on Facebook, Instagram, and other social media platform; VIN Performance Media, a machine-learning for media campaign, including audience targeting, real-time inventory, and ad placement across search, social, and display; In-Market Video, provides OEMs and dealers to pinpoint serious, ready-to-buy shoppers geographically; and proprietary in-market media solutions.
The company serves local dealers, OEMs, dealer groups, and auto-adjacent companies. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.
Stock analysis
Cars.com Inc (CARS) currently trades at $13.35, while our model-based Fair Value estimate is $8.47, 37% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $21.48 per share, and 10 of the 19 models we run sit above the $13.35 price.
Bear case: the Earnings-Based group reads lowest at $3.58, and 9 of the 19 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $5.97 (bear) to $11.64 (bull), the price of $13.35 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Communication Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Cars.com Inc reported revenue of $723M in FY2025 versus $624M in FY2021, a compound +3.8%/yr. Reported net income was $20.1M in FY2025, compounding +27.0%/yr from FY2021.
Key figures
Market cap $756M Small · P/E ratio 18.0 · P/S ratio 1.04 · EPS (TTM) $0.7400 · Net margin 5.9% · Return on equity 9.3% · Return on assets (EBIT) 4.5% (5-year average) · Operating margin 15.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 44 out of 100 (medium confidence).
What moves the price
The share trades about 2% below its 52-week high and 76% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 13% fair-value upside, at −37%, CARS screens richer than that median.
Fair Value models
Bear$5.97Fair Value $8.47Bull$11.64
Price $13.35 · Downside -36.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.6325 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 3 officers or directors sold shares worth $1.6M and none bought.
SaleJr. Donald A. McGovernDirector8,000 shares at $12.25$98,000Aug 20, 2026
SaleAngelique Strong MarksChief Legal Officer57,980 shares at $11.94$692,281Aug 17, 2026
SaleSonia JainChief Financial Officer2× since Dec 17, 2025: 98,000 shares, avg. $9.99$978,845Jun 12, 2026
BuyJenell RossDirector1,995 shares at $7.56$15,082Mar 13, 2026
SaleMatthew B. CrawfordChief Product Innovation Off.27,358 shares at $12.03$329,117Dec 2, 2025
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.70/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+0.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.7%
Start year 2020 (pandemic). Over 10 years: +1.9% a year
Revenue growth 12 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.7%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
≈ +32.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year≈ +32.0%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 24.6% / −18.3%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−162% → 8%
⚠ Base effect: the rate starts in the earnings trough around 2020 (starting value 0.11 per share, median 2.38 in 2015 to 2018). It measures the recovery from the trough, not lasting growth.
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−0.6%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+1.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −2.9% a year for the price and −0.5% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Internet Content & Information · 123 stocks
Beats the industry median on 7/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score64 · Above median
Fair Value upside−36.6% · Below median
Profitability
Return on equity (12 months)9.3% · Above median
Return on assets1.9% · Below median
Net margin (12 months)5.9% · Above median
Operating margin (12 months)15.9% · Above median
Growth and dividend
Revenue growth (quarter YoY)0.2% · Below median
Balance sheet
Debt / equity0.96× · Highest 25%
Valuation Multiplesvs Internet Content & Information median · lower = cheaper
P/E (12 months)18.0× · Pricier than median
P/B1.60× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Cars.com Inc Fair Value". https://www.fairvalue-calculator.com/stock/CARS
Frequently asked questions
Is Cars.com Inc (CARS) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $8.47 versus a price of $13.35, about 37% lower (overvalued).
What is the fair value of CARS?
Our model-based fair value for Cars.com Inc is $8.47 (as of Nov 8, 2026), built from audited fundamentals. The current price: $13.35.
What is the quality score of CARS?
Cars.com Inc has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cars.com Inc (CARS)?
Our model-based price target is the fair value of $8.47 (as of Nov 8, 2026) from 19 valuation models. Cautious scenario $5.97, optimistic scenario $11.64. It is a calculation from audited fundamentals, not an analyst target.
What is the Cars.com Inc stock forecast for 2026?
Our models put fair value at $8.47, about 37% lower versus a price of $13.35 (overvalued). Cautious scenario $5.97, optimistic scenario $11.64. The calculation is refreshed regularly with new filings.
What is the revenue of Cars.com Inc (CARS)?
Cars.com Inc reported trailing-twelve-month revenue of about $726M (latest available figure, as of Nov 8, 2026).
What growth is priced into Cars.com Inc (CARS)?
For today's price to be fair in a discounted-cash-flow model, Cars.com Inc would have to grow free cash flow by -0.6 % per year for five years (discount rate 13.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.7 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of CARS use?
Our models discount Cars.com Inc at 13.2 %: a base by market capitalisation (small), damped by beta 1.71, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Cars.com Inc that is -0.6 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (13.2 %) and the same formula as our fair value.
How much growth has Cars.com Inc (CARS) delivered so far?
Over the past 5 years revenue at Cars.com Inc grew +5.7 % a year. The price currently implies free-cash-flow growth of -0.6 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Cars.com Inc (CARS) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into Cars.com Inc (-0.6 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Cars.com Inc (CARS)?
The free-cash-flow yield on the price is 19.48 %: that much free cash flow Cars.com Inc produces per unit of market value. When it exceeds the discount rate of our models (13.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Cars.com Inc (CARS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cars.com Inc it is $8.47 per share (as of Nov 8, 2026), against a price of $13.35. It is the blended result of 19 valuation models in 6 families (DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Cars.com Inc stock overvalued or undervalued in 2026?
As of Nov 8, 2026, CARS trades above its calculated fair value: price $13.35, fair value $8.47, a gap of about −37% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CARS?
No. The price is what the market pays today ($13.35); the fair value is what the company's own numbers justify ($8.47). For Cars.com Inc the two are $4.88 per share apart. That gap is exactly why we show both numbers side by side.
How much is Cars.com Inc worth?
The market values Cars.com Inc at about $756M (market capitalisation, as of Nov 8, 2026). Per share that is $13.35; our models calculate a fair value of $8.47 per share.
What do the bullish and bearish scenarios say about CARS?
Our models span a range for Cars.com Inc: cautious scenario $5.97, base $8.47, optimistic $11.64 per share (as of Nov 8, 2026, price $13.35). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CARS?
Cars.com Inc trades at a price-to-earnings ratio of 18.0 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $8.47 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 31.1 (reported for FY2025: 41.7). Median P/E at fiscal year-end, 7 fiscal years (2017 to 2025), reported earnings: 37.6. Other multiples: PEG 2.4, P/B 1.6, P/S 1.0, EV/EBITDA 7.1.
What is the PEG ratio of CARS?
The PEG ratio of Cars.com Inc is 2.35 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Cars.com Inc (CARS)?
Balance-sheet figures for Cars.com Inc (as of Nov 8, 2026): return on equity 9.3%, debt of 0.96 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is CARS from its 52-week high?
Cars.com Inc trades at $13.35, about 2% below its 52-week high of $13.56 and 76% above the low of $7.58 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $8.47 is for.
Which stocks are comparable to Cars.com Inc?
From the same area (Communication Services) we also value Alphabet Inc, Meta Platforms, Inc, Tencent Holdings, Spotify Technology S.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cars.com Inc stock attractive at the current price?
The data as of Nov 8, 2026: price $13.35, calculated fair value $8.47 (−37%), Quality Score 64/100, from 19 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CARS calculated?
We run Cars.com Inc through 19 models from 6 families: DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $8.47 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Cars.com Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cars.com Inc (CARS)?
The closing price on Nov 6, 2026 was $13.35. Our model-based fair value is $8.47, about 37% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cars.com Inc right now?
The price sits above even our optimistic bull case ($11.64). The favourable scenario is already priced in. Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($5.97 to $11.64) leaves room in how you read the outcome.
Key figures of Cars.com Inc
How large is the market capitalisation of Cars.com Inc (CARS)?
The market capitalisation of Cars.com Inc is $756M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cars.com Inc (CARS)?
The price-to-sales ratio of Cars.com Inc is 1.04 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cars.com Inc (CARS)?
Earnings per share at Cars.com Inc are $0.7400 (price ÷ EPS = P/E 18.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Cars.com Inc (CARS)?
The net margin of Cars.com Inc is 5.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cars.com Inc (CARS)?
The return on equity (ROE) of Cars.com Inc is 9.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cars.com Inc (CARS)?
On an EBIT basis the return on assets of Cars.com Inc is 4.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cars.com Inc (CARS)?
The operating margin of Cars.com Inc is 15.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cars.com Inc (CARS)?
Revenue at Cars.com Inc is growing +0.2% versus a year earlier (3y avg +3.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cars.com Inc (CARS)?
Earnings per share at Cars.com Inc are growing +150% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Cars.com Inc (CARS) carry?
The net debt of Cars.com Inc is $412M (fiscal year 2025, ≈ 2.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Nov 8, 2026