CarGurus, Inc.

NasdaqGS:CARG Stock Report

Market Cap: US$3.7b

CarGurus Valuation

Is CARG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CARG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CARG ($36.03) is trading below our estimate of fair value ($193.35)

Significantly Below Fair Value: CARG is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CARG?

Key metric: As CARG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CARG. This is calculated by dividing CARG's market cap by their current revenue.
What is CARG's PS Ratio?
PS Ratio4.2x
SalesUS$888.97m
Market CapUS$3.74b

Price to Sales Ratio vs Peers

How does CARG's PS Ratio compare to its peers?

The above table shows the PS ratio for CARG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
IAC IAC
0.9x0.5%US$3.6b
ATHM Autohome
3.2x2.7%US$3.2b
WB Weibo
1.3x2.3%US$2.4b
ZD Ziff Davis
1.7x5.6%US$2.4b
CARG CarGurus
4.2x13.4%US$3.7b

Price-To-Sales vs Peers: CARG is expensive based on its Price-To-Sales Ratio (4.2x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does CARG's PS Ratio compare vs other companies in the US Interactive Media and Services Industry?

23 CompaniesPrice / SalesEstimated GrowthMarket Cap
FUBO fuboTV
0.3x12.3%US$441.00m
TRVG trivago
0.3x5.7%US$161.55m
SY So-Young International
0.4x5.9%US$79.71m
SST System1
0.2x1.4%US$77.21m
CARG 4.2xIndustry Avg. 1.2xNo. of Companies23PS01.63.24.86.48+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CARG is expensive based on its Price-To-Sales Ratio (4.2x) compared to the US Interactive Media and Services industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is CARG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CARG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.2x
Fair PS Ratio2.8x

Price-To-Sales vs Fair Ratio: CARG is expensive based on its Price-To-Sales Ratio (4.2x) compared to the estimated Fair Price-To-Sales Ratio (2.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CARG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$36.03
US$39.42
+9.4%
18.2%US$46.00US$16.00n/a13
Dec ’25US$37.82
US$38.27
+1.2%
20.1%US$46.00US$16.00n/a13
Nov ’25US$31.15
US$30.35
-2.6%
17.5%US$38.00US$16.00n/a13
Oct ’25US$29.65
US$29.19
-1.5%
15.7%US$35.00US$16.00n/a13
Sep ’25US$28.98
US$28.88
-0.3%
15.2%US$35.00US$16.00n/a13
Aug ’25US$24.10
US$27.00
+12.0%
14.5%US$32.00US$15.00n/a13
Jul ’25US$24.98
US$26.62
+6.5%
14.4%US$30.00US$15.00n/a13
Jun ’25US$24.21
US$26.33
+8.8%
14.6%US$30.00US$15.00n/a12
May ’25US$22.32
US$25.23
+13.0%
14.8%US$30.00US$15.00n/a12
Apr ’25US$23.00
US$25.23
+9.7%
14.8%US$30.00US$15.00n/a12
Mar ’25US$22.68
US$25.25
+11.3%
14.8%US$30.00US$15.00n/a12
Feb ’25US$23.66
US$25.08
+6.0%
15.2%US$30.00US$15.00n/a12
Jan ’25US$24.16
US$24.08
-0.3%
14.0%US$28.00US$15.00n/a12
Dec ’24US$21.68
US$23.83
+9.9%
14.3%US$28.00US$15.00US$37.8212
Nov ’24US$17.07
US$22.92
+34.3%
14.8%US$28.00US$15.00US$31.1512
Oct ’24US$17.52
US$23.17
+32.2%
15.7%US$28.00US$15.00US$29.6512
Sep ’24US$18.47
US$23.36
+26.5%
16.0%US$28.00US$15.00US$28.9811
Aug ’24US$22.28
US$23.09
+3.6%
16.8%US$29.00US$15.00US$24.1011
Jul ’24US$22.63
US$21.67
-4.3%
19.1%US$29.00US$12.00US$24.9812
Jun ’24US$19.12
US$20.64
+7.9%
16.0%US$24.00US$12.00US$24.2111
May ’24US$16.38
US$19.45
+18.8%
14.1%US$22.00US$12.00US$22.3211
Apr ’24US$18.68
US$19.45
+4.1%
14.1%US$22.00US$12.00US$23.0011
Mar ’24US$18.14
US$18.50
+2.0%
20.7%US$22.00US$11.50US$22.6811
Feb ’24US$17.66
US$18.71
+5.9%
33.9%US$37.00US$11.50US$23.6612
Jan ’24US$14.01
US$17.96
+28.2%
35.7%US$37.00US$11.50US$24.1612
Dec ’23US$13.08
US$18.32
+40.0%
36.0%US$37.00US$11.50US$21.6811

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:46
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

CarGurus, Inc. is covered by 21 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Daniel KurnosBenchmark Company
Naved KhanB. Riley Securities, Inc.