CarGurus, Inc. (CARG) is a publicly traded company in the Communication Services — Internet Content & Information industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
CarGurus, Inc., established in Boston, Massachusetts, in 2005, manages a prominent online ecosystem for vehicle transactions, serving both buyers and sellers across the United States and internationally. The company's operations are divided into two main segments: the U.S. Marketplace and Digital Wholesale. Essentially, CarGurus offers an expansive digital automotive marketplace where individuals can search for new and pre-owned vehicle listings from numerous dealerships.
Is CarGurus, Inc. stock overvalued or undervalued in 2026?
CarGurus, Inc. (CARG) trades at 17.0× earnings (P/E), below the median of the 80 communication companies over $2bn in Kaplio's universe. At its sector median (20.0×) $37 (+18 %).
Kaplio overview: CarGurus, Inc.
Market cap $3B · 52 weeks $27 – $39 (21 % below the high) · P/E 17.0× · 2027 expected P/E 10.4× · Dividend none · Next earnings November 5, 2026 · expected EPS $0.66 · Closing price, Oct 28 · accounts published Aug 6.
- Valuation: P/E 17.0× (fairly priced).
- Business: EBITDA margin 25.0 % (weak).
- Balance sheet: Net debt/EBITDA 0.0× (solid).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At its sector median (20.0×) $37 (+18 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in communication: 4 of 6 pass
- 3y revenue growth −11.0 %, fails.
- EBITDA margin 25.0 %, fails.
- FCF yield 9.7 %, passes.
- Capex / Revenue 0.7 %, passes.
- Net debt / EBITDA 0.0×, passes.
- EV/EBITDA vs own 5y 10.8×, passes.
- Payout on FCF n/a: it pays no dividend, info.
Against its peers (reference peers) — CarGurus, Inc.: P/E 17.0×; EV/EBITDA 10.8×; ROIC 42.0 %; $2.8B. OPENLANE, Inc. (P/E 111×; EV/EBITDA 12.0×; ROIC 14.1 %; $4.6B), People Incorporated (P/E 8.0×; EV/EBITDA —; ROIC 0.2 %; $2.7B), JOYY, Inc. Sponsored ADR Class A (P/E 17.9×; EV/EBITDA 23.6×; ROIC 0.8 %; $3.7B).
Profitability
| Return on Equity | 56.25% |
| Return on Invested Capital | 41.98% |
| Return on Assets | 31.69% |
| Gross Margin | 91.06% |
| Operating Margin | 25.25% |
| Net Margin | 18.06% |
Financial Health
| Debt / Equity | 0.70 |
| Current Ratio | 1.85 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 11.11 |
Price Performance
| 1 month | -0.64% |
| 3 months | -14.57% |
| Year-to-date | -19.27% |
| 1 year | -9.68% |
| 3 years | +81.37% |
| 5 years | -7.69% |
Related companies: OPLN · GOOGL · GOOG · META · SPOT · DASH · 0A28.L · BIDU
Explore sector: Communication Services · Internet Content & Information
More sections of CARG: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method today · Companies that pass the Lynch method today · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks