Is Cars.com, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Cars.com, Inc. has moved from attractive to fair. This indicates that the company is fairly valued at this time. The P/E ratio stands at 31, which is significantly higher than the peer average of 20.24 for Cars.com, suggesting that it may be overvalued compared to its peers. Additionally, the EV to EBITDA ratio of 6.99 and the Price to Book Value of 1.33 further support this assessment, as they are not particularly compelling in the context of the industry.
In comparison to its peers, Cars.com, Inc. has a P/E ratio that is higher than Cargurus, Inc. at 22.21, but lower than MakeMyTrip Ltd. at 95.54, indicating a mixed competitive positioning. The company's recent performance has been disappointing, with a year-to-date return of -40.28% compared to the S&P 500's positive return of 13.30%, reinforcing the notion that the stock may be struggling relative to broader market trends.