CarGurus Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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.

Discounted Cash Flow
Simply Wall St
US$143.28
Fair Value
73.6% undervalued intrinsic discount
13
Number of Analysts


Key Valuation Metric

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

Key metric:

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 Ratio4.4x
SalesUS$888.97m
Market CapUS$3.92b

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
0.9x1.2%US$3.6b
ATHM Autohome
3.4x3.1%US$3.3b
WB Weibo
1.3x2.3%US$2.4b
YY JOYY
1x2.9%US$2.3b
CARG CarGurus
4.4x14.8%US$3.9b


Price to Sales Ratio vs Industry

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

22 CompaniesPrice / SalesEstimated GrowthMarket Cap
OB Outbrain
0.4x6.6%US$321.23m
TRVG trivago
0.4x5.5%US$178.34m
AREN Arena Group Holdings
0.3xn/aUS$66.45m
BLCT BlueCity Holdings
0.4xn/aUS$57.70m
CARG 4.4xIndustry Avg. 1.2xNo. of Companies22PS01.63.24.86.48+
22 CompaniesEstimated GrowthMarket Cap
No more companies


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 Ratio4.4x
Fair PS Ratio2.9x


Analyst Price Targets

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

Analyst Price Target
Consensus Narrative from 13 Analysts
US$39.88
Fair Value
5.3% undervalued intrinsic discount
13
Number of Analysts


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/21 06:57
End of Day Share Price 2025/01/17 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.