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 ($35.16) is trading below our estimate of fair value ($190.68)

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 Ratio4.1x
SalesUS$888.97m
Market CapUS$3.68b

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 Average1.7x
IAC IAC
1.1x1.1%US$4.1b
ATHM Autohome
3.5x2.7%US$3.3b
WB Weibo
1.3x2.2%US$2.2b
YY JOYY
0.9x3.2%US$2.1b
CARG CarGurus
4.1x13.5%US$3.7b

Price-To-Sales vs Peers: CARG is expensive based on its Price-To-Sales Ratio (4.1x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

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

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
FUBO fuboTV
0.3x12.3%US$474.41m
OB Outbrain
0.3x6.6%US$249.24m
TRVG trivago
0.2x5.7%US$116.79m
SST System1
0.2x1.4%US$89.15m
CARG 4.1xIndustry Avg. 1.3xNo. of Companies24PS01.63.24.86.48+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CARG is expensive based on its Price-To-Sales Ratio (4.1x) compared to the US Interactive Media and Services industry average (1.3x).

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 Ratio4.1x
Fair PS Ratio2.8x

Price-To-Sales vs Fair Ratio: CARG is expensive based on its Price-To-Sales Ratio (4.1x) 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$35.16
US$37.88
+7.7%
19.6%US$45.00US$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$15.00n/a12
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
Nov ’23US$15.17
US$26.91
+77.4%
22.4%US$37.00US$18.00US$17.0711

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

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