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. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 31, which is significantly higher than the peer average of 20.24 for Cars.com, Inc., while the EV to EBITDA ratio of 6.99 is also elevated compared to peers like Cargurus, Inc. at 14.11. Additionally, the Price to Book Value is 1.33, indicating a premium over its book value.
In comparison to its peers, Cars.com, Inc. is less attractive than Cargurus, Inc., which has a P/E of 22.21 and is rated very attractive. Other peers like Yelp, Inc. are rated attractive with a P/E of 13.15, further highlighting Cars.com, Inc.'s relative overvaluation. Although specific return data is not available, the absence of a strong performance relative to the S&P 500 could reinforce the notion of overvaluation.