Historical Valuation
CarGurus Inc (CARG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.34 is considered Undervalued compared with the five-year average of 19.18. The fair price of CarGurus Inc (CARG) is between 84.16 to 108.48 according to relative valuation methord. Compared to the current price of 38.62 USD , CarGurus Inc is Undervalued By 54.11%.
Relative Value
Fair Zone
84.16-108.48
Current Price:38.62
54.11%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
CarGurus Inc (CARG) has a current Price-to-Book (P/B) ratio of 9.64. Compared to its 3-year average P/B ratio of 5.48 , the current P/B ratio is approximately 75.94% higher. Relative to its 5-year average P/B ratio of 5.85, the current P/B ratio is about 64.80% higher. CarGurus Inc (CARG) has a Forward Free Cash Flow (FCF) yield of approximately 7.58%. Compared to its 3-year average FCF yield of 6.75%, the current FCF yield is approximately 12.25% lower. Relative to its 5-year average FCF yield of 6.03% , the current FCF yield is about 25.77% lower.
P/B
Median3y
5.48
Median5y
5.85
FCF Yield
Median3y
6.75
Median5y
6.03
Competitors Valuation Multiple
AI Analysis for CARG
The average P/S ratio for CARG competitors is 3.51, providing a benchmark for relative valuation. CarGurus Inc Corp (CARG.O) exhibits a P/S ratio of 3.69, which is 4.96% above the industry average. Given its robust revenue growth of 3.17%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for CARG
1Y
3Y
5Y
Market capitalization of CARG increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of CARG in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is CARG currently overvalued or undervalued?
CarGurus Inc (CARG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.34 is considered Undervalued compared with the five-year average of 19.18. The fair price of CarGurus Inc (CARG) is between 84.16 to 108.48 according to relative valuation methord. Compared to the current price of 38.62 USD , CarGurus Inc is Undervalued By 54.11% .
What is CarGurus Inc (CARG) fair value?
CARG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of CarGurus Inc (CARG) is between 84.16 to 108.48 according to relative valuation methord.
How does CARG's valuation metrics compare to the industry average?
The average P/S ratio for CARG's competitors is 3.51, providing a benchmark for relative valuation. CarGurus Inc Corp (CARG) exhibits a P/S ratio of 3.69, which is 4.96% above the industry average. Given its robust revenue growth of 3.17%, this premium appears unsustainable.
What is the current P/B ratio for CarGurus Inc (CARG) as of Jan 10 2026?
As of Jan 10 2026, CarGurus Inc (CARG) has a P/B ratio of 9.64. This indicates that the market values CARG at 9.64 times its book value.
What is the current FCF Yield for CarGurus Inc (CARG) as of Jan 10 2026?
As of Jan 10 2026, CarGurus Inc (CARG) has a FCF Yield of 7.58%. This means that for every dollar of CarGurus Inc’s market capitalization, the company generates 7.58 cents in free cash flow.
What is the current Forward P/E ratio for CarGurus Inc (CARG) as of Jan 10 2026?
As of Jan 10 2026, CarGurus Inc (CARG) has a Forward P/E ratio of 15.34. This means the market is willing to pay $15.34 for every dollar of CarGurus Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for CarGurus Inc (CARG) as of Jan 10 2026?
As of Jan 10 2026, CarGurus Inc (CARG) has a Forward P/S ratio of 3.69. This means the market is valuing CARG at $3.69 for every dollar of expected revenue over the next 12 months.