Cars.com is a leading online destination that helps car shoppers and owners buy, sell and service their vehicles. The company is one of the largest digital automotive platform that features new and used vehicle listings, a comprehensive set of research tools and a database of consumer reviews. Cars.com companies include DealerRater, Auto.com, PickupTrucks.com and NewCars.com. The company was founded in 1998 and is based in Chicago.
CARS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CARS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Carscom Inc ranked in the 19th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 79.17%. As for the metrics that stood out in our discounted cash flow analysis of Carscom Inc, consider:
The company's compound free cash flow growth rate over the past 4.18 years comes in at -0.13%; that's greater than only 11.69% of US stocks we're applying DCF forecasting to.
Carscom Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -26.62. This coverage rate is greater than that of merely 4.43% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 13. This value is greater than 78.21% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CARS, try FIVE, ARD, EAT, MCFT, and BFAM.
Cars.com (NYSE: CARS), a leading digital automotive marketplace and solutions provider, today revealed the top five trends advancing the auto space in 2021 and beyond. The COVID-19 pandemic forever altered car buying and selling, and changes will persist this year as Americans continue to spend more time at home and online, place a premium on the freedom car ownership provides, and keep affordability and electric vehicles top of mind.
The latest research from Cars.com (NYSE: CARS), a leading digital automotive marketplace and solutions provider, reports nearly half of Americans (46%) plan to travel for December holidays.1 COVID-19 is increasingly impacting travel decisions and prompting the majority of travelers (66%) to use their personal vehicles as opposed to flying or taking mass transit.2 As virus cases continue to rise across the country, the number of Americans planning to travel for the New Year's holiday is shrinking.
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial […]
Cars.com saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, with an upgrade from 80 to 84. IBD's unique RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against the rest of the market.