CarGurus (CARG) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of CarGurus stock $37.11, price $33.74, upside +10.0%, quality 100 out of 100. Rating: fairly valued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $11.93 – $48.45 · fair‑value band $25.98 – $48.25 · the $33.74 price screens below the $37.11 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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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.
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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.
Stock analysis
CarGurus (CARG) currently trades at $33.74, while our model-based Fair Value estimate is $37.11, so the stock looks roughly fairly valued today (gap 9.1%).
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Valuation
Bull case: the Growth DCF group reads highest at a median of $51.82 per share, and 13 of the 24 models we run sit above the $33.74 price.
Bear case: the Economic Profit group reads lowest at $16.47, and 11 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $25.98 (bear) to $48.25 (bull), the price of $33.74 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 100/100 (high quality), in the Communication Services sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
CarGurus reported revenue of $939M in FY2025 versus $951M in FY2021, a compound −0.3%/yr. Reported net income was $156M in FY2025, compounding +9.3%/yr from FY2021.
Key figures
Market cap $3.1B Mid · P/E ratio 16.7 · P/S ratio 3.11 · EPS (TTM) $2.02 · Net margin 18.6% · Return on equity 57.5% · Return on assets (EBIT) 12.4% (5-year average) · Operating margin 26.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 85 out of 100 (low confidence).
What moves the price
The share trades about 14% below its 52-week high and 25% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 13% fair-value upside, at 10%, CARG screens richer than that median.
Fair Value models
Bear$25.98Fair Value $37.11Bull$48.25
Price $33.74 · Upside +10.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($1.73 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 9 officers or directors sold shares worth $4.4M and none bought.
SaleLangley SteinertExecutive Chair, Director, 10% owner2,866 shares at $37.56$107,642Nov 4, 202610b5-1 plan
SaleIsmail ElshareefChief Product Officer4× since Feb 2, 2026: 15,239 shares, avg. $35.17$536,022Nov 2, 202610b5-1 plan
SaleSamuel ZalesCOO and President5× since Dec 16, 2025: 50,000 shares, avg. $34.43$1.7MNov 2, 202610b5-1 plan
SaleMatthew Todd QuinnChief Technology Officer4× since Jan 5, 2026: 17,045 shares, avg. $34.00$579,540Oct 2, 202610b5-1 plan
SaleDafna SarnoffChief Marketing Officer5× since Dec 2, 2025: 36,366 shares, avg. $34.94$1.3MOct 2, 202610b5-1 plan
SaleGreg M SchwartzDirector2× since Nov 11, 2025: 15,000 shares, avg. $35.73$536,000Aug 12, 2026
SaleJason TrevisanChief Executive Officer, Director4× since Nov 11, 2025: 61,100 shares, avg. $37.41$2.3MAug 7, 202610b5-1 plan
SaleJavier ZamoraGeneral Counsel and Secretary5× since Jun 1, 2026: 24,874 shares, avg. $33.43$831,501Aug 3, 202610b5-1 plan
SaleJennifer Ladd HansonChief People Officer6× since Dec 31, 2025: 9,014 shares, avg. $35.87$323,367Jul 2, 202610b5-1 plan
BuyStephen KauferDirector30,766 shares at $32.50$999,899Mar 3, 2026
Plus 28 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+5.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−17.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.2%
Start year 2020 (pandemic). Over 10 years: +25.3% a year
Revenue growth 10 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+25.3%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+27.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+27.3%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.18.8% vs 38.8%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18% → 21%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−1.8%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −4.1% a year for the price and +5.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (95 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: High margins and ROE indicate strong profitability, but sparse public data prevents confirmation of a durable moat.
Main risk: The false advertising lawsuit risks eroding platform trust and dealer reliance in the core marketplace model.
CarGurus faces a lawsuit from New York City alleging false advertising, which contributed to recent share weakness ahead of third quarter results. The company continues to advance tools like VINMax that shorten vehicle turn times for dealers while maintaining strong profitability. Our models see the business as undervalued. Will this regulatory matter erode platform trust over time or prove a short-term distraction given the core dealer model?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Internet Content & Information · 123 stocks
Beats the industry median on 10/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score100 · Top 25%
Fair Value upside+10.0% · Above median
Profitability
Return on equity (12 months)57.5% · Top 25%
Return on assets23.6% · Top 25%
Net margin (12 months)18.6% · Top 25%
Operating margin (12 months)26.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)8.2% · Above median
Valuation Multiplesvs Internet Content & Information median · lower = cheaper
P/E (12 months)16.7× · Pricier than median
P/B8.21× · Priciest 25%
P/S (12 months)3.11× · Pricier than median
Price / free cash flow (fiscal year)10.6× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "CarGurus Fair Value". https://www.fairvalue-calculator.com/stock/CARG
Frequently asked questions
Is CarGurus (CARG) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $37.11 versus a price of $33.74, about +10% upside (fairly valued).
What is the fair value of CARG?
Our model-based fair value for CarGurus is $37.11 (as of Nov 8, 2026), built from audited fundamentals. The current price: $33.74.
What is the quality score of CARG?
CarGurus has a Quality Score of 100/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for CarGurus (CARG)?
Our model-based price target is the fair value of $37.11 (as of Nov 8, 2026) from 24 valuation models. Cautious scenario $25.98, optimistic scenario $48.25. It is a calculation from audited fundamentals, not an analyst target.
What is the CarGurus stock forecast for 2026?
Our models put fair value at $37.11, about +10% upside versus a price of $33.74 (fairly valued). Cautious scenario $25.98, optimistic scenario $48.25. The calculation is refreshed regularly with new filings.
What is the revenue of CarGurus (CARG)?
CarGurus reported trailing-twelve-month revenue of about $987M (latest available figure, as of Nov 8, 2026).
What growth is priced into CarGurus (CARG)?
For today's price to be fair in a discounted-cash-flow model, CarGurus would have to grow free cash flow by -1.8 % per year for five years (discount rate 10.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.2 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of CARG use?
Our models discount CarGurus at 10.3 %: a base by market capitalisation (mid), damped by beta 1.24, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For CarGurus that is -1.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.3 %) and the same formula as our fair value.
How much growth has CarGurus (CARG) delivered so far?
Over the past 5 years revenue at CarGurus grew +11.2 % a year. The price currently implies free-cash-flow growth of -1.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of CarGurus (CARG) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into CarGurus (-1.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of CarGurus (CARG)?
The free-cash-flow yield on the price is 9.40 %: that much free cash flow CarGurus produces per unit of market value. When it exceeds the discount rate of our models (10.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of CarGurus (CARG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For CarGurus it is $37.11 per share (as of Nov 8, 2026), against a price of $33.74. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is CarGurus stock overvalued or undervalued in 2026?
As of Nov 8, 2026, CARG trades below its calculated fair value: price $33.74, fair value $37.11, a gap of about +10% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CARG?
No. The price is what the market pays today ($33.74); the fair value is what the company's own numbers justify ($37.11). For CarGurus the two are $3.37 per share apart. That gap is exactly why we show both numbers side by side.
How much is CarGurus worth?
The market values CarGurus at about $3.1B (market capitalisation, as of Nov 8, 2026). Per share that is $33.74; our models calculate a fair value of $37.11 per share.
What do the bullish and bearish scenarios say about CARG?
Our models span a range for CarGurus: cautious scenario $25.98, base $37.11, optimistic $48.25 per share (as of Nov 8, 2026, price $33.74). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CARG?
CarGurus trades at a price-to-earnings ratio of 16.7 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $37.11 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 14.7 (reported for FY2025: 21.0). Median P/E at fiscal year-end, 9 fiscal years (2017 to 2025), reported earnings, 4 of the years ex one-offs: 46.6. Other multiples: PEG 0.7, P/B 8.2, P/S 3.1, EV/EBITDA 10.2.
What is the PEG ratio of CARG?
The PEG ratio of CarGurus is 0.72 (P/E divided by earnings growth, as of Nov 8, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of CarGurus (CARG)?
Balance-sheet figures for CarGurus (as of Nov 8, 2026): return on equity 57.5%. They feed the Quality Score of 100/100, which measures business quality independently of the share price.
How far is CARG from its 52-week high?
CarGurus trades at $33.74, about 14% below its 52-week high of $39.03 and 25% above the low of $26.96 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $37.11 is for.
Which stocks are comparable to CarGurus?
From the same area (Communication Services) we also value Alphabet Inc, Meta Platforms, Inc, Tencent Holdings, Spotify Technology S.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is CarGurus stock attractive at the current price?
The data as of Nov 8, 2026: price $33.74, calculated fair value $37.11 (+10%), Quality Score 100/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CARG calculated?
We run CarGurus through 24 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $37.11 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. CarGurus currently trades 9% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of CarGurus (CARG)?
The closing price on Nov 6, 2026 was $33.74. Our model-based fair value is $37.11, about +10% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with CarGurus right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($25.98 to $48.25) leaves room in how you read the outcome.
Key figures of CarGurus
How large is the market capitalisation of CarGurus (CARG)?
The market capitalisation of CarGurus is $3.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of CarGurus (CARG)?
The price-to-sales ratio of CarGurus is 3.11 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of CarGurus (CARG)?
Earnings per share at CarGurus are $2.02 (price ÷ EPS = P/E 16.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of CarGurus (CARG)?
The net margin of CarGurus is 18.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of CarGurus (CARG)?
The return on equity (ROE) of CarGurus is 57.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of CarGurus (CARG)?
On an EBIT basis the return on assets of CarGurus is 12.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of CarGurus (CARG)?
The operating margin of CarGurus is 26.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at CarGurus (CARG)?
Revenue at CarGurus is growing +8.2% versus a year earlier (3y avg −17.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at CarGurus (CARG)?
Earnings per share at CarGurus are growing +31.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does CarGurus (CARG) carry?
The net debt of CarGurus is $315K (fiscal year 2025, ≈ 0.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 8, 2026