CARG Valuation

CarGurus Inc

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37.830

+0.49(1.312%)1D

Overview
Forecast
Valuation
Earnings

CARG Relative Valuation

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. If the market price exceeds this fair value range, CARG is overvalued; if below, it's undervalued.

Historical Valuation

CarGurus Inc (CARG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.07 is considered Undervalued compared with the five-year average of 19.70. The fair price of CarGurus Inc (CARG) is between 76.09 to 99.09 according to relative valuation methord. Compared to the current price of 37.83 USD , CarGurus Inc is Undervalued By 50.28%.

Relative Value

Fair Zone

76.09-99.09

Current Price：37.83

50.28%

Undervalued

16.07

Trailing

Forward

11.42

EV/EBITDA

CarGurus Inc. (CARG) has a current EV/EBITDA of 11.42. The 5-year average EV/EBITDA is 13.33. The thresholds are as follows: Strongly Undervalued below 5.30, Undervalued between 5.30 and 9.32, Fairly Valued between 17.35 and 9.32, Overvalued between 17.35 and 21.36, and Strongly Overvalued above 21.36. The current Forward EV/EBITDA of 11.42 falls within the Historic Trend Line -Fairly Valued range.

12.34

EV/EBIT

CarGurus Inc. (CARG) has a current EV/EBIT of 12.34. The 5-year average EV/EBIT is 14.61. The thresholds are as follows: Strongly Undervalued below 5.55, Undervalued between 5.55 and 10.08, Fairly Valued between 19.13 and 10.08, Overvalued between 19.13 and 23.66, and Strongly Overvalued above 23.66. The current Forward EV/EBIT of 12.34 falls within the Historic Trend Line -Fairly Valued range.

3.90

CarGurus Inc. (CARG) has a current PS of 3.90. The 5-year average PS is 2.89. The thresholds are as follows: Strongly Undervalued below 1.00, Undervalued between 1.00 and 1.95, Fairly Valued between 3.84 and 1.95, Overvalued between 3.84 and 4.78, and Strongly Overvalued above 4.78. The current Forward PS of 3.90 falls within the Overvalued range.

13.02

P/OCF

CarGurus Inc. (CARG) has a current P/OCF of 13.02. The 5-year average P/OCF is 15.05. The thresholds are as follows: Strongly Undervalued below 5.31, Undervalued between 5.31 and 10.18, Fairly Valued between 19.92 and 10.18, Overvalued between 19.92 and 24.79, and Strongly Overvalued above 24.79. The current Forward P/OCF of 13.02 falls within the Historic Trend Line -Fairly Valued range.

16.33

P/FCF

CarGurus Inc. (CARG) has a current P/FCF of 16.33. The 5-year average P/FCF is 18.22. The thresholds are as follows: Strongly Undervalued below 8.48, Undervalued between 8.48 and 13.35, Fairly Valued between 23.08 and 13.35, Overvalued between 23.08 and 27.95, and Strongly Overvalued above 27.95. The current Forward P/FCF of 16.33 falls within the Historic Trend Line -Fairly Valued range.

CarGurus Inc (CARG) has a current Price-to-Book (P/B) ratio of 8.60. Compared to its 3-year average P/B ratio of 4.87 , the current P/B ratio is approximately 76.62% higher. Relative to its 5-year average P/B ratio of 5.81, the current P/B ratio is about 47.97% higher. CarGurus Inc (CARG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.75%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.84% , the current FCF yield is about -100.00% lower.

8.60

P/B

Median3y

4.87

Median5y

5.81

6.71

FCF Yield

Median3y

6.75

Median5y

5.84

Competitors Valuation Multiple

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 , which is -100.00% above the industry average. Given its robust revenue growth of 7.01%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CARG increased by 25.97% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.23 to 30.50.

The secondary factor is the Revenue Growth, contributed 7.01%to the performance.

Overall, the performance of CARG in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.01%

218.69M → 234.03M

Revenue Growth

-130.39%

-31.42 → 9.55

Margin Expansion

149.35%

12.23 → 30.50

P/E Change

25.97%