CarGurus (CARG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
CarGurus stock (CARG) is currently trading at $35.45. CarGurus PE ratio is 17.77. CarGurus PS ratio (Price-to-Sales) is 3.67. Analyst consensus price target for CARG is $35.79. WallStSmart rates CARG as Moderate Buy.
- CARG PE ratio analysis and historical PE chart
- CARG PS ratio (Price-to-Sales) history and trend
- CARG intrinsic value — DCF, Graham Number, EPV models
- CARG stock price prediction 2025 2026 2027 2028 2029 2030
- CARG fair value vs current price
- CARG insider transactions and insider buying
- Is CARG undervalued or overvalued?
- CarGurus financial analysis — revenue, earnings, cash flow
- CARG Piotroski F-Score and Altman Z-Score
- CARG analyst price target and Smart Rating
CarGurus
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CARG Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · CarGurus (CARG)
CARG trades at a significant discount to its Graham intrinsic value of $74.48, offering a 63% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
CarGurus (CARG) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, return on equity, operating margin. Concerns around price/book. Overall metrics suggest strong investment potential with favorable risk/reward.
CarGurus (CARG) Key Strengths (6)
Every $100 of shareholder equity generates $43 in profit
104.49% of shares held by major funds and institutions
Good growth relative to its price
Strong operational efficiency: $29 kept per $100 revenue
Strong profitability: $17 kept per $100 revenue
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
CarGurus (CARG) Areas to Watch (4)
Very expensive at 8.6x book value
Modest revenue growth at 5.50%
Revenue is fairly priced at 3.67x sales
Solid earnings growth at 19.50%
CarGurus (CARG) Detailed Analysis Report
Overall Assessment
This company scores 67/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 6 register as strengths (avg 8.5/10) while 4 fall into concern territory (avg 4.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Institutional Own., PEG Ratio. Valuation metrics including PEG Ratio (1.01) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 43.00%, Operating Margin at 28.70%, Profit Margin at 17.20%.
The Bear Case
The primary concerns are Price/Book, Revenue Growth, Price/Sales. Some valuation metrics including Price/Sales (3.67), Price/Book (8.55) suggest expensive pricing. Growth concerns include Revenue Growth at 5.50%, EPS Growth at 19.50%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Book improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 43.00% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 5.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Institutional Own.) and negatives (Price/Book, Revenue Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
CARG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
CARG's Price-to-Sales ratio of 3.67x sits near its historical average of 4.26x (62th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 74% below its historical high of 14.28x set in Sep 2018, and 353% above its historical low of 0.81x in Apr 2023. Over the past 12 months, the PS ratio has expanded from ~2.6x, reflecting growing market expectations outpacing revenue growth.
Compare CARG with Competitors
Top AUTO & TRUCK DEALERSHIPS stocks by market cap
Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for CarGurus (CARG) · CONSUMER CYCLICAL › AUTO & TRUCK DEALERSHIPS
The Big Picture
CarGurus is a mature, profitable business with steady cash generation. Revenue reached 907M with 6% growth year-over-year. Profit margins of 17.2% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 43.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 82M in free cash flow and 83M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Sector dynamics: monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive moves, and regulatory changes that could impact CarGurus.
Bottom Line
CarGurus is a well-established business delivering consistent profitability with 17.2% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(26 last 3 months)
| Insider | Type | Shares |
|---|---|---|
KAUFER, STEPHEN Director | Buy | +30,766.105 |
| Insider | Type | Shares |
|---|---|---|
ELSHAREEF, ISMAIL Chief Product Officer | Sell | -1,645 |
| Insider | Type | Shares |
|---|---|---|
QUINN, MATTHEW TODD Chief Technology Officer | Sell | -732 |
| Insider | Type | Shares |
|---|---|---|
HANSON, JENNIFER LADD Chief People Officer | Sell | -2,358 |
| Insider | Type | Shares |
|---|---|---|
HANSON, JENNIFER LADD Chief People Officer | Sell | -1,180 |
Data sourced from SEC Form 4 filings
Last updated: 10:12:53 AM
About CarGurus(CARG)
NASDAQ
CONSUMER CYCLICAL
AUTO & TRUCK DEALERSHIPS
USA
CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.