Stock fact sheet · data as of
Cars.com Inc. (CARS): fair value, margin of safety and Wheel Score
Ticker symbol CARS · Communication Services · Internet Content & Information · United States · Blend
Is CARS undervalued?
Cars.com Inc. (CARS) closed at 12.75 on 5 Nov 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 24.02, which puts the price 47% below it. 4 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between EPV (6.82) and 10 Cap (60.81). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for CARS, so the nightly engine files it under Blend (value score 53, growth score 37, out of 100).
Nine valuation models for CARS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 30.29 | +138% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 10.47 | -18% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 24.14 | +89% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 9.73 | -24% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 9.51 | -25% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 60.81 | +377% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 40.44 | +217% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 6.82 | -47% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -6.77 | -153% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 11.50 | -10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Cars.com Inc. scores 9 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. On durability CARS scores 5.8/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 2.1%, ROE 4.2%, ROA 1.9% - with debt at 0.99 times equity and a free-cash-flow yield of 21.0%.
Cars.com Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Subscription Advertising And Digital So… 82%, Display Advertising 15%, Other Major Product And Services 2% (quarter Q3 FY2023).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 19 Oct 2026.
| Piotroski F-score | 9 / 9 | ROIC | 2.1% |
|---|---|---|---|
| GLS Moat | 5.8 / 10 | ROE | 4.2% |
| Debt / equity | 0.99 | ROA | 1.9% |
| Free-cash-flow yield | 21.0% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 51: Fair
A Wheel Score of 51 keeps Cars.com Inc. under 70, the mark only a stock that passes all 9 Wheel Trade Filters can reach: it fails filter 8, big enough - market cap $713M (under $1.0B). The parts: value strong, premium strong, moat fair, health strong, red flags fair, option trading weak, stability weak.
Implied volatility is 58% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 3,204 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.9M shares a day on a market cap of $713M, with a beta of 1.66 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $713M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 47% below fair value | |
| Premium | Strong | implied volatility 58% | |
| Moat | Fair | moat 5.8/10 | |
| Health | Strong | Piotroski 9/9 | |
| Red Flags | Fair | Red Flags score 70/100 | |
| Option trading | Weak | 1,473 contracts a day, 3,204 open interest | |
| Stability | Weak | beta 1.66, $713M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Cars.com Inc. reports earnings on 5 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Internet Content & Information
The 12 companies below are the closest to Cars.com Inc. by market cap within the Internet Content & Information industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| GRPN Groupon, Inc. | 17.31 | 35.10 | +51% | 34Weak | $704M |
| TBLA Taboola.com Ltd. | 2.74 | 14.45 | +81% | 41Weak | $691M |
| NRDS NerdWallet, Inc. | 11.81 | 35.46 | +67% | 49Weak | $755M |
| MAX MediaAlpha, Inc. | 15.05 | 34.70 | +57% | 49Weak | $766M |
| MOMO Hello Group Inc. | 4.55 | 11.97 | +62% | 51Fair | $654M |
| ATHM Autohome Inc. | 22.49 | 45.48 | +51% | 47Weak | $651M |
| BMBL Bumble Inc. | 6.00 | 30.31 | +80% | 33Weak | $792M |
| NXDR Nextdoor Holdings, Inc. | 2.44 | 0.7357 | -232% | 27Weak | $944M |
| EVER EverQuote, Inc. | 30.60 | 77.65 | +61% | 51Fair | $969M |
| YELP Yelp Inc. | 22.05 | 111.16 | +80% | 77Good | $1.2B |
| SOHU Sohu.com Limited | 13.62 | 249.14 | +95% | 44Weak | $409M |
| DJT Trump Media & Technology Group Corp. | 4.49 | 0.6531 | -587% | 18Weak | $1.2B |
⚖ Compare CARS with 7 of them All Communication Services stocks →
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about CARS
Is CARS undervalued right now?
By the GLS models, yes: at 12.75 the stock is 47% below the average fair value of 24.02 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of CARS and what does it mean?
CARS scores 51 out of 100 (Fair) - it fails Wheel Trade Filter 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for CARS?
24.02 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Cars.com Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does CARS have listed options, and how liquid are they?
Yes. The nightly snapshot found 16 listed contracts with 3,204 open interest across all expiries and implied volatility of 58% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.