CARG Valuation

CarGurus Inc

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33.600

+0.09(0.269%)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 14.96 is considered Undervalued compared with the five-year average of 20.45. The fair price of CarGurus Inc (CARG) is between 605.40 to 630.14 according to relative valuation methord. Compared to the current price of 33.80 USD , CarGurus Inc is Undervalued By 94.42%.

Relative Value

Fair Zone

605.40-630.14

Current Price：33.80

94.42%

Undervalued

14.96

Trailing

Forward

10.92

EV/EBITDA

CarGurus Inc. (CARG) has a current EV/EBITDA of 10.92. The 5-year average EV/EBITDA is 13.85. The thresholds are as follows: Strongly Undervalued below 4.62, Undervalued between 4.62 and 9.23, Fairly Valued between 18.46 and 9.23, Overvalued between 18.46 and 23.08, and Strongly Overvalued above 23.08. The current Forward EV/EBITDA of 10.92 falls within the Historic Trend Line -Fairly Valued range.

11.56

EV/EBIT

CarGurus Inc. (CARG) has a current EV/EBIT of 11.56. The 5-year average EV/EBIT is 15.18. The thresholds are as follows: Strongly Undervalued below 4.81, Undervalued between 4.81 and 10.00, Fairly Valued between 20.36 and 10.00, Overvalued between 20.36 and 25.55, and Strongly Overvalued above 25.55. The current Forward EV/EBIT of 11.56 falls within the Historic Trend Line -Fairly Valued range.

3.46

CarGurus Inc. (CARG) has a current PS of 3.46. The 5-year average PS is 2.94. The thresholds are as follows: Strongly Undervalued below 0.91, Undervalued between 0.91 and 1.92, Fairly Valued between 3.96 and 1.92, Overvalued between 3.96 and 4.98, and Strongly Overvalued above 4.98. The current Forward PS of 3.46 falls within the Historic Trend Line -Fairly Valued range.

11.46

P/OCF

CarGurus Inc. (CARG) has a current P/OCF of 11.46. The 5-year average P/OCF is 15.46. The thresholds are as follows: Strongly Undervalued below 5.19, Undervalued between 5.19 and 10.32, Fairly Valued between 20.59 and 10.32, Overvalued between 20.59 and 25.72, and Strongly Overvalued above 25.72. The current Forward P/OCF of 11.46 falls within the Historic Trend Line -Fairly Valued range.

13.69

P/FCF

CarGurus Inc. (CARG) has a current P/FCF of 13.69. The 5-year average P/FCF is 18.59. The thresholds are as follows: Strongly Undervalued below 8.43, Undervalued between 8.43 and 13.51, Fairly Valued between 23.66 and 13.51, Overvalued between 23.66 and 28.74, and Strongly Overvalued above 28.74. The current Forward P/FCF of 13.69 falls within the Historic Trend Line -Fairly Valued range.

CarGurus Inc (CARG) has a current Price-to-Book (P/B) ratio of 8.21. Compared to its 3-year average P/B ratio of 4.73 , the current P/B ratio is approximately 73.55% higher. Relative to its 5-year average P/B ratio of 5.89, the current P/B ratio is about 39.51% higher. CarGurus Inc (CARG) has a Forward Free Cash Flow (FCF) yield of approximately 6.72%. Compared to its 3-year average FCF yield of 6.57%, the current FCF yield is approximately 2.33% lower. Relative to its 5-year average FCF yield of 5.68% , the current FCF yield is about 18.40% lower.

8.21

P/B

Median3y

4.73

Median5y

5.89

6.72

FCF Yield

Median3y

6.57

Median5y

5.68

Competitors Valuation Multiple

The average P/S ratio for CARG's competitors is 3.64, providing a benchmark for relative valuation. CarGurus Inc Corp (CARG) exhibits a P/S ratio of 3.46, which is -4.95% 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

Market capitalization of CARG increased by 35.01% 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.

4.34%

215.80M → 225.16M

Revenue Growth

75.68%

9.87 → 17.34

Margin Expansion

-45.01%

168.45 → 92.63

P/E Change

35.01%