CARG PE Ratio & Valuation, Is CARG Overvalued

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 19.13. The fair price of CarGurus Inc (CARG) is between 81.61 to 101.60 according to relative valuation method. Compared to the current price of 31.35 USD , CarGurus Inc By Undervalued By 61.59%.

Relative Value

Fair Zone

81.61-101.60

Current Price：31.35

61.59%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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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 5.64, the current P/B ratio is approximately 70.77% higher. Relative to its 5-year average P/B ratio of 5.73, the current P/B ratio is about 68.09% 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 6.41%, the current FCF yield is approximately 18.31% lower. Relative to its 5-year average FCF yield of 6.08%, the current FCF yield is about 24.63% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for CARG competitors is 5.61, providing a benchmark for relative valuation. CarGurus Inc Corp (CARG.O) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 58.17%, this premium appears sustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of CARG increased by 0.00% over the past 1 year(s). 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(s) is driven by Unknown.

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Frequently Asked Questions

Is CARG currently overvalued or undervalued?

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 81.61 to 101.60 according to relative valuation method.

How does CARG's valuation metrics compare to the industry average?

The average P/S ratio for CARG's competitors is 5.61, 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 58.17%, this premium appears sustainable.

What is the current P/B ratio for CarGurus Inc (CARG) as of Mar 12 2026?

As of Mar 12 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 Mar 12 2026?

As of Mar 12 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 Mar 12 2026?

As of Mar 12 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 Mar 12 2026?

As of Mar 12 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.

CARG Valuation