Is Cars.com, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Cars.com, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation. The company is currently considered overvalued based on its valuation ratios, which include a P/E ratio of 31, an EV to EBIT of 22.81, and a Price to Book Value of 1.33. In comparison, its peer Cargurus, Inc. has a more attractive P/E ratio of 22.21, while Yelp, Inc. shows a significantly lower P/E of 13.15, suggesting that Cars.com, Inc. is not competitively priced within its industry.
The recent stock performance reveals a stark contrast with the S&P 500, as Cars.com, Inc. has experienced a year-to-date decline of 33.76%, while the S&P 500 has gained 12.26%. This underperformance further supports the conclusion that the stock is overvalued relative to its peers and the broader market.