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DCF Valuation
Base-case fair value
$31.80
Intrinsic $42.40 · 25% MOS
Current price: $9.95
Base-case summary
Our base-case DCF for Cars.com Inc. (CARS) projects 10 years of free cash flow growth at 3.0% for years 1–5 and 1.5% for years 6–10, anchored to 3.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $158M in trailing free cash flow, this produces an intrinsic value of $42.40 per share. A 25% safety margin gives a fair value of $31.80, suggesting the stock is currently 220% undervalued against the $9.95 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$158M
Cash & equivalents
$65M
Total debt
$452M
Shares outstanding
60M