CarGurus, Inc. (CARG) Valuation — DCF, Graham & Comparables

CarGurus, Inc. (CARG) — Price $29.35 — Communication Services — Internet Content & Information — NASDAQ

Latest reported results:

Valuation dashboard for CarGurus, Inc. (CARG) with P/E 16.05, P/B 10.24, EV/EBITDA 10.44 and dividend yield 0.00%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Communication Services companies.

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.

Analysis Summary

CarGurus, Inc. reported revenue of $939.0M in the most recent fiscal year, growing at a 5-year CAGR of 11.2%. Net income reached $155.9M, with a 15.0% 5-year CAGR.

Trailing-twelve-month margins: gross margin 91.1%, operating margin 25.3%, net margin 18.1%.

At the current price of $29.35, CARG trades at a P/E of 16.05 and an ROE of 56.25%. Market capitalisation stands at $2.8B.

Balance sheet quality for CARG: current ratio of 2.8. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio16.05
Price / Book10.24
EV / EBITDA10.44
Dividend Yield0.00%

Valuation Models

DCF Fair Value$17.03
vs Current Price-42.0%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
CARGCarGurus, Inc.$3.0B16.0510.2456.2%
PATKPatrick Industries, Inc.$2.3B26.062.9711.4%
GTXGarrett Motion Inc.$4.9B14.48
RRRRed Rock Resorts, Inc.$3.0B12.9017.0291.1%
PIIPolaris Inc.$3.1B
HOGHarley-Davidson, Inc.$2.6B16.200.936.3%
RHRh$2.3B29.9061.53205.9%

Price

Price$29.35
Market Cap$2.8B
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity56.25%
Return on Invested Capital41.98%
Return on Assets31.69%
Gross Margin91.06%
Operating Margin25.25%
Net Margin18.06%

Related companies: GTX · HOG · KAR · PATK · PII · REAL · RH

Explore sector: Communication Services · Internet Content & Information

More sections of CARG: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Investment Academy — learn to analyze stocks