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 14.23 is considered Undervalued compared with the five-year average of 20.34. The fair price of CarGurus Inc (CARG) is between 366.69 to 390.83 according to relative valuation methord. Compared to the current price of 31.86 USD , CarGurus Inc is Undervalued By 91.31%.
Relative Value
Fair Zone
366.69-390.83
Current Price：31.86
91.31%
Undervalued
14.23
PE
1Y
3Y
5Y
Trailing
Forward
10.39
EV/EBITDA
CarGurus Inc. (CARG) has a current EV/EBITDA of 10.39. The 5-year average EV/EBITDA is 13.77. The thresholds are as follows: Strongly Undervalued below 4.75, Undervalued between 4.75 and 9.26, Fairly Valued between 18.28 and 9.26, Overvalued between 18.28 and 22.79, and Strongly Overvalued above 22.79. The current Forward EV/EBITDA of 10.39 falls within the Historic Trend Line -Fairly Valued range.
10.99
EV/EBIT
CarGurus Inc. (CARG) has a current EV/EBIT of 10.99. The 5-year average EV/EBIT is 15.09. The thresholds are as follows: Strongly Undervalued below 4.95, Undervalued between 4.95 and 10.02, Fairly Valued between 20.17 and 10.02, Overvalued between 20.17 and 25.24, and Strongly Overvalued above 25.24. The current Forward EV/EBIT of 10.99 falls within the Historic Trend Line -Fairly Valued range.
3.29
PS
CarGurus Inc. (CARG) has a current PS of 3.29. The 5-year average PS is 2.93. The thresholds are as follows: Strongly Undervalued below 0.93, Undervalued between 0.93 and 1.93, Fairly Valued between 3.94 and 1.93, Overvalued between 3.94 and 4.94, and Strongly Overvalued above 4.94. The current Forward PS of 3.29 falls within the Historic Trend Line -Fairly Valued range.
10.90
P/OCF
CarGurus Inc. (CARG) has a current P/OCF of 10.90. The 5-year average P/OCF is 15.39. The thresholds are as follows: Strongly Undervalued below 5.22, Undervalued between 5.22 and 10.31, Fairly Valued between 20.48 and 10.31, Overvalued between 20.48 and 25.56, and Strongly Overvalued above 25.56. The current Forward P/OCF of 10.90 falls within the Historic Trend Line -Fairly Valued range.
13.01
P/FCF
CarGurus Inc. (CARG) has a current P/FCF of 13.01. The 5-year average P/FCF is 18.52. The thresholds are as follows: Strongly Undervalued below 8.44, Undervalued between 8.44 and 13.48, Fairly Valued between 23.56 and 13.48, Overvalued between 23.56 and 28.60, and Strongly Overvalued above 28.60. The current Forward P/FCF of 13.01 falls within the Undervalued range.
CarGurus Inc (CARG) has a current Price-to-Book (P/B) ratio of 7.81. Compared to its 3-year average P/B ratio of 4.74 , the current P/B ratio is approximately 64.61% higher. Relative to its 5-year average P/B ratio of 5.88, the current P/B ratio is about 32.87% higher. CarGurus Inc (CARG) has a Forward Free Cash Flow (FCF) yield of approximately 6.86%. Compared to its 3-year average FCF yield of 6.59%, the current FCF yield is approximately 4.11% lower. Relative to its 5-year average FCF yield of 5.70% , the current FCF yield is about 20.51% lower.
7.81
P/B
Median3y
4.74
Median5y
5.88
7.07
FCF Yield
Median3y
6.59
Median5y
5.70
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 3.29, which is -6.25% above the industry average. Given its robust revenue growth of 4.34%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CARG increased by 8.94% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.87 to 17.34.
The secondary factor is the Revenue Growth, contributed 4.34%to the performance.
Overall, the performance of CARG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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