CarGurus, Inc. (CARG)
POSITIVEFundamental
78
Price
$36.48
Market Cap
$3.36B
Part 1 · What the company is worth
Overview
CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. The company offers dealer subscription fees, advertising from auto manufacturers and other brand advertisers, and partnerships with financing services companies. It provides an online automotive marketplace that connects large audience of car shoppers with extensive network of dealers, anchoring integrated suite of products. It also offers Digital Deal which allows consumers the option to start their vehicle purchase process online for eligible listings; Dealership Mode which provides consumers with on-the-lot support during visits to participating dealers through the CarGurus app; Sell My Car Top Dealer Offers which allows dealers to make tailored trade-in offers; and IMV Scan enables dealers to scan a VIN using their smartphone to access IMV data; and PriceVantage, an advanced pricing software powered by machine learning that leverages real-time consumer demand. In addition, the company provides auto manufacturers and others advertiser products, such as brand reinforcement, category sponsorship, automobile segment exclusivity, and consumer segment exposure; Autolist, an online automotive marketplace through mobile applications and a website; and PistonHeads which is an automotive marketplace, auction platform, and editorial site for automotive enthusiasts. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.
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Direct competitors
Who this company fights with for the same customers
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Balance Sheet & Liquidity
Revenue
$967M
Trailing 12 months (through 6/30/2026)
Net Income
$176M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$289M
Total Equity
$374M
Total Liabilities
$288M
Current Ratio
1.85
Interest Coverage
-
Debt/EBITDA
0.68
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$37.49
Current Price
$36.48
Margin of Safety
+2.7%
Fair Value Range
$24.37 - $50.61
Estimation Methods
Valuation Metrics
P/E Ratio
20.22
ROE
41.7%
P/B Ratio
10.60
P/FCF
8.89
Gross Margin
92.3%
ROIC
34.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
34.4%
WACC
10.5%
ROIC − WACC
+23.9 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- ROIC 34.4%
- Gross Margin 92.3%
- P/FCF 8.89
- Debt/Equity ratio
- Operating Margin 27.0%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 56.3%
- Revenue Growth 5Y 10.5%
- Analyst Consensus 64% Buy
- PEG Ratio 1.07
- Earnings Quality (OCF/NI) 1.81
- Share Dilution -4.1%
- Net Margin Trend 18.2% vs 15.3%
- Piotroski F-Score 7/9
Failed (5)
- Price CAGR 2.32%
- P/B Ratio 10.60
- Price below Graham Number
- DCF valuation (Unknown)
- Earnings Surprise avg 1.3%
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. E. Langley Steinert | Founder & Executive Chairman | 61 |
| Mr. Jason M. Trevisan | CEO, CFO, Interim Principal Financial & Accounting Officer, Treasurer & Director | 50 |
| Mr. Samuel Zales | COO & President | 61 |
| Mr. Matthew Todd Quinn | Chief Technology Officer | 53 |
| Ms. Kirndeep Singh | VP & Head of Investor Relations | - |
| Mr. Javier Zamora J.D. | General Counsel & Corporate Secretary | 54 |
| Ms. Dafna Sarnoff | Chief Marketing Officer | 61 |
| Ms. Jennifer Hanson J.D. | Chief People Officer | 54 |
| Mr. Ismail Elshareef | Chief Product Officer | 49 |
Audit Risk
1
Board Risk
10
Compensation Risk
7
Shareholder Rights Risk
10
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for CARG, sourced from Markets Gazette.