Is Cars.com, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Cars.com, Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable assessment. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 31, which is significantly higher than the peer average of 20.24 for Cars.com, Inc. Additionally, the EV to EBIT ratio stands at 22.81, and the Price to Book Value is 1.33, further suggesting that the stock may be priced above its intrinsic value.
In comparison to its peers, Cars.com, Inc. is less attractive than Cargurus, Inc., which has a P/E of 22.21 and an EV to EBITDA of 14.11, and Yelp, Inc., which boasts a P/E of 13.15 and an EV to EBITDA of 6.81. The recent stock performance shows that Cars.com, Inc. has underperformed against the S&P 500, with a year-to-date return of -35.72% compared to the S&P 500's 14.40%, reinforcing the notion that the stock may be overvalued at its current price.