CarGurus, Inc. (CARG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-51.3%

$16.47

vs $33.79 price

Levered DCF

$26.23

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

10.19

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.12×	182.7×	127.16×	8.54×	-25,876.92×	45.99×	92.58×	56.22×
P/B	9.77×	7.05×	4.44×	2.26×	7.62×	9.59×	15.26×	18.91×
P/S	3.89×	4.27×	2.99×	1×	4.14×	6.49×	6.66×	8.08×
EV / EBITDA	15.81×	21.4×	26.35×	8.02×	19.91×	32.06×	93.27×	119.16×
Gross margin	89.0%	82.6%	71.3%	39.7%	69.1%	92.3%	93.8%	94.5%
Operating margin	20.7%	1.5%	3.6%	6.6%	15.6%	17.7%	5.8%	5.1%
Net margin	16.6%	2.3%	3.4%	11.7%	11.5%	14.1%	7.2%	14.4%
Current ratio	2.81×	4.2×	3.4×	5.65×	3.3×	4.99×	2.97×	3.07×
Debt / equity	0.51×	0.36×	0.32×	0.09×	0.14×	0.19×	0.27×	0×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	41.7%	3.9%	5.0%	26.4%	21.1%	20.8%	16.4%	33.6%
Return on invested capital	26.8%	1.5%	1.7%	9.1%	14.2%	17.1%	10.4%	11.3%
Return on assets	23.6%	2.5%	3.4%	20.9%	11.7%	15.4%	10.7%	24.3%
Free cash flow yield	7.9%	4.7%	3.0%	14.4%	2.1%	4.2%	1.4%	1.2%
Earnings yield	4.3%	0.5%	1.1%	11.7%	2.8%	2.2%	1.1%	1.8%
Enterprise value	$3.7B	$3.7B	$2.6B	$1.3B	$3.8B	$3.5B	$3.9B	$3.6B
Net debt / EBITDA	0×	-0.64×	-0.97×	-2.57×	-0.85×	-1.12×	0.23×	-1.14×
Cash conversion cycle (days)	-86	-43	-50	0	15	-172	-356	-257