Cars.com Inc. (CARS) Financial Ratios
12 years of historical data (2014–2025) · Consumer Cyclical · Auto - Dealerships
EV/EBITDA
↓
7.34
↓-23% vs avg
5yr avg: 9.57
30Y Low7.7·High11.8
P/FCF
↓
4.78
↓-44% vs avg
5yr avg: 8.51
30Y Low5.1·High13.5
P/B Ratio
↓
1.61
↓-32% vs avg
5yr avg: 2.38
30Y Low0.7·High2.9
ROE
↑
4.1%
↑-58% vs avg
5yr avg: 9.6%
30Y Low-110%·High27%
Debt/EBITDA
↓
3.08
+2% vs avg
5yr avg: 3.02
30Y Low2.6·High3.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CARS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Cars.com Inc. trades at 38.6x earnings, 18% below its 5-year average of 47.1x, sitting at the 57th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.4x, the stock trades at a premium of 98%. On a free-cash-flow basis, the stock trades at 4.8x P/FCF, 44% below the 5-year average of 8.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $704M | $753M | $1.2B | $1.3B | $959M | $1.1B | $760M | $819M | $1.5B | $2.1B | — |
| Enterprise Value | $1.1B | $1.2B | $1.6B | $1.7B | $1.4B | $1.6B | $1.3B | $1.4B | $2.2B | $2.6B | — |
| P/E Ratio → | 38.56 | 38.13 | 24.07 | 10.90 | 55.08 | 107.27 | — | — | 39.09 | 9.21 | — |
| P/S Ratio | 0.97 | 1.04 | 1.62 | 1.88 | 1.47 | 1.84 | 1.39 | 1.35 | 2.29 | 3.30 | — |
| P/B Ratio | 1.61 | 1.59 | 2.28 | 2.63 | 2.49 | 2.88 | 2.23 | 0.72 | 0.93 | 1.23 | — |
| P/FCF | 4.78 | 5.11 | 7.81 | 11.17 | 8.82 | 9.66 | 6.23 | 10.20 | 10.16 | 13.51 | — |
| P/OCF | 4.64 | 4.97 | 7.66 | 9.47 | 7.46 | 8.32 | 5.48 | 8.07 | 9.27 | 11.13 | — |
P/E links to full P/E history page with 30-year chart
CARS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Cars.com Inc.'s enterprise value stands at 7.3x EBITDA, 23% below its 5-year average of 9.6x. The Consumer Cyclical sector median is 11.4x, placing the stock at a 36% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.61 | 2.19 | 2.52 | 2.14 | 2.53 | 2.33 | 2.39 | 3.30 | 4.19 | — |
| EV / EBITDA | 7.34 | 7.66 | 9.79 | 11.21 | 8.72 | 10.48 | — | — | 11.63 | 11.78 | — |
| EV / EBIT | 18.52 | 12.23 | 16.72 | 34.40 | 24.18 | 32.67 | — | — | 25.80 | 19.56 | — |
| EV / FCF | — | 7.91 | 10.52 | 15.01 | 12.87 | 13.26 | 10.47 | 18.05 | 14.62 | 17.15 | — |
CARS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Cars.com Inc. earns an operating margin of 8.3%, above the Consumer Cyclical sector average of 2.9%. ROE of 4.1% is modest, trailing the sector median of 5.7%. ROIC of 5.0% represents adequate returns on invested capital versus a sector median of 5.8%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 83.0% | 83.0% | 82.7% | 82.3% | 82.4% | 81.7% | 81.5% | 83.6% | 86.1% | 89.5% | 79.5% |
| Operating Margin | 8.3% | 8.3% | 7.4% | 7.9% | 10.1% | 7.8% | -162.1% | -73.5% | 12.7% | 21.4% | 27.9% |
| Net Profit Margin | 2.8% | 2.8% | 6.7% | 17.2% | 2.6% | 1.7% | -149.2% | -73.4% | 5.9% | 35.8% | 27.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.1% | 4.1% | 9.6% | 27.0% | 4.4% | 2.9% | -110.3% | -32.2% | 2.3% | 11.0% | 7.5% |
| ROA | 1.8% | 1.8% | 4.2% | 10.8% | 1.7% | 1.0% | -52.7% | -19.2% | 1.5% | 8.9% | 7.0% |
| ROIC | 5.0% | 5.0% | 4.3% | 4.6% | 6.0% | 4.3% | -50.7% | -16.5% | 2.8% | 4.3% | 5.6% |
| ROCE | 6.2% | 6.2% | 5.3% | 5.6% | 7.2% | 5.1% | -60.9% | -20.2% | 3.4% | 5.5% | 7.3% |
CARS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Cars.com Inc. carries a Debt/EBITDA ratio of 3.1x, which is moderately leveraged (30% below the sector average of 4.4x). Net debt stands at $412M ($468M total debt minus $56M cash). Interest coverage of just 1.6x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.99 | 0.99 | 0.89 | 0.98 | 1.23 | 1.17 | 1.72 | 0.56 | 0.43 | 0.34 | — |
| Debt / EBITDA | 3.08 | 3.08 | 2.83 | 3.12 | 2.94 | 3.10 | — | — | 3.69 | 2.59 | — |
| Net Debt / Equity | — | 0.87 | 0.79 | 0.90 | 1.15 | 1.07 | 1.52 | 0.55 | 0.41 | 0.33 | -0.00 |
| Net Debt / EBITDA | 2.71 | 2.71 | 2.52 | 2.86 | 2.75 | 2.84 | — | — | 3.55 | 2.50 | -0.03 |
| Debt / FCF | — | 2.80 | 2.71 | 3.83 | 4.05 | 3.60 | 4.23 | 7.84 | 4.47 | 3.64 | -0.05 |
| Interest Coverage | 1.56 | 1.56 | 2.92 | 1.56 | 1.64 | 1.24 | -23.74 | -14.44 | 3.05 | 10.85 | — |
CARS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.87x means Cars.com Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.22x to 1.87x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.87 | 1.87 | 1.83 | 1.22 | 1.40 | 1.56 | 1.97 | 1.24 | 1.39 | 1.58 | 1.66 |
| Quick Ratio | 1.87 | 1.87 | 1.83 | 1.22 | 1.40 | 1.56 | 1.97 | 1.24 | 1.31 | 1.46 | 1.66 |
| Cash Ratio | 0.50 | 0.50 | 0.43 | 0.27 | 0.30 | 0.41 | 0.75 | 0.14 | 0.23 | 0.23 | 0.12 |
| Asset Turnover | — | 0.68 | 0.65 | 0.59 | 0.64 | 0.62 | 0.51 | 0.30 | 0.25 | 0.25 | 0.25 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 9.76 | 12.25 | — |
| Days Sales Outstanding | — | 66.59 | 67.88 | 66.40 | 60.25 | 57.88 | 62.43 | 61.22 | 60.04 | 58.78 | 56.67 |
CARS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Cars.com Inc. returns 12.4% to shareholders annually primarily through share buybacks. The earnings yield of 2.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | 31.4% | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | 289.6% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 2.6% | 4.2% | 9.2% | 1.8% | 0.9% | — | — | 2.6% | 10.9% | — |
| FCF Yield | 20.9% | 19.6% | 12.8% | 9.0% | 11.3% | 10.4% | 16.0% | 9.8% | 9.8% | 7.4% | — |
| Buyback Yield | 12.4% | 11.5% | 4.2% | 2.4% | 5.1% | 0.0% | 0.0% | 4.9% | 6.4% | 0.0% | — |
| Total Shareholder Yield | 12.4% | 11.5% | 4.2% | 2.4% | 5.1% | 0.0% | 0.0% | 4.9% | 6.4% | 31.4% | — |
| Shares Outstanding | — | $62M | $67M | $68M | $70M | $71M | $67M | $67M | $71M | $72M | $72M |
Peer Comparison
Compare CARS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CARSYou | $704M | 38.6 | 7.3 | 4.8 | 83.0% | 8.3% | 4.1% | 5.0% | 3.1 |
 TC | $21M | -1.0 | — | — | 68.3% | -182.9% | — | — | — |
 CARG | $4B | 24.6 | 16.6 | 13.1 | 89.0% | 20.7% | 34.0% | 36.2% | 0.8 |
 SCI | $11B | 20.7 | 12.0 | 19.6 | 26.5% | 22.6% | 32.7% | 11.3% | 3.9 |
 KMX | $6B | 12.4 | 22.6 | 36.5 | 11.4% | 2.8% | 8.1% | 2.4% | 17.6 |
 CVNA | $87B | 47.4 | 39.5 | 97.6 | 20.6% | 9.3% | 50.4% | 34.3% | 0.3 |
 VRM | $65M | -0.1 | — | — | 100.0% | -1092.2% | -362.1% | -10.0% | — |
 OPEN | $4B | -3.1 | — | 3.9 | 7.0% | -6.2% | -151.3% | -15.8% | — |
 AN | $7B | 12.0 | 10.8 | — | 17.0% | 4.8% | 27.1% | 8.5% | 6.4 |
 PAG | $11B | 12.2 | 13.8 | 15.3 | 16.4% | 4.0% | 17.3% | 6.9% | 6.1 |
 EBAY | $49B | 24.5 | 21.0 | 29.3 | 71.5% | 20.5% | 41.6% | 16.8% | 2.9 |
| Consumer Cyclical Median | — | 19.4 | 11.4 | 15.3 | 36.8% | 2.9% | 5.7% | 5.8% | 4.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonCARS — Frequently Asked Questions
Quick answers to the most common questions about buying CARS stock.
What is Cars.com Inc.'s P/E ratio?
Cars.com Inc.'s current P/E ratio is 38.6x. The historical average is 40.5x. This places it at the 57th percentile of its historical range.
What is Cars.com Inc.'s EV/EBITDA?
Cars.com Inc.'s current EV/EBITDA is 7.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.2x.
What is Cars.com Inc.'s ROE?
Cars.com Inc.'s return on equity (ROE) is 4.1%. The historical average is -3.5%.
Is CARS stock overvalued?
Based on historical data, Cars.com Inc. is trading at a P/E of 38.6x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Cars.com Inc.'s profit margins?
Cars.com Inc. has 83.0% gross margin and 8.3% operating margin.
How much debt does Cars.com Inc. have?
Cars.com Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.