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CARG

NASDAQ

CarGurus Inc

Communication Services
Media

$36.84

1.7%

Updated Today 11:10 AM ET

Report Card

CARG at a glance — five pillars scored 0–100 from real filed financials.

Value
Growth
Profitability
0
Health
0
Dividends
0

Overall: Unrated · 0/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Key Metrics

Market Cap

$0.00

P/E

Forward P/E (est.)

ROE

Revenue Growth

EPS Growth

Profit Margin

FCF Yield

Debt / Equity

ROIC

73.0%

Interest Coverage

Current Ratio

1.85x

Dividend Yield

Implied Growth (rev. DCF)

Rating Score

0/100

Business Overview
Research

CarGurus Inc (CARG) is a small-cap company in the Media industry, part of the Communication Services sector of the S&P 500.

In its latest reported year it generated about $906.98M in revenue and $155.90M in net profit.

Our model rates CARG Unrated (0/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Economic Moat

Evidence of durable competitive advantage in the filed financials (10 years of history).

Wide moat signalsMoat evidence score: 72/100

The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.

Gross margin level100/100

91.7% average over the last 3 years

Gross margin stability0/100

±16.9 pts around 85.4% across 10 years

Revenue durability69/100

grew in 7 of the last 9 year-over-year periods

Free-cash-flow consistency100/100

positive in 10 of 10 years

Return on invested capital100/100

73.0% latest fiscal year

A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.

Revenue Growth
Research

4Y CAGR

-1.2%

Revenue moved from $198.14M in 2016 to $906.98M in 2025, a 18.4% compound annual growth rate. The most recent year was roughly steady year over year. Slower, mature growth is common for established businesses.

Profitability
1/1 checks passedROIC above 10%

Gross Margin

92.8%

Operating Margin

27.0%

Net Margin

17.2%

ROE

Debt Analysis
Research
1/1 checks passedShort-term bills covered

Total Debt

$0.00

Net Debt

-$122.14M

Net cash position

Net Debt / EBITDA

-0.5x

Debt / Equity

Leverage: debt-to-equity is n/a, with a current ratio of 1.9x. Detailed balance-sheet leverage is limited for this name. It carries roughly $0.00 of total debt against $122.14M of cash.

Cash Flow Analysis
Research

Operating CF

$295.28M

Free Cash Flow

$288.90M

FCF Margin

31.9%

In the latest year CarGurus Inc produced about $295.28M of operating cash flow and $288.90M of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

P/S

P/B

EV / EBITDA

CARG trades at n/a trailing earnings. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

Current price

$36.84

Starting FCF (latest 10-K)

$288.90M

Growth, years 1–5

4.0%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$2.23B
PV of terminal value$2.73B
Estimated equity value$4.96B

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where CARG sits versus its Communication Services sector peers in the S&P 500.

TTM P/E
Forward P/E
P/S ratio
Revenue growth
EPS growth
Gross margin
92.8%Strong
Net margin
ROE

Bands show the middle half (25th–75th percentile) of the 44 Communication Services companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How CARG stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.

In the Communication Services sector (95 S&P 500 companies), CARG ranks #52 of 95 by our overall rating.

P/E vs sector

median 17.1x

ROE vs sector

median 14.9%

Growth vs sector

median 5.3%

Sector rank

#52

of 95 by rating

CompanyP/ERev Gr.Rating
CARGThis stockNot rated
BATRANot rated
BATRKNot rated
DJTNot rated
ECHONot rated
LBRDANot rated
LBRDKNot rated
LLYVANot rated
Communication Services median17.1x5.3%0/100
Compare side by side

Peers are the closest Communication Services companies by sub-industry and size. Sector median is across all 95 S&P 500 names in the sector. Educational, not a recommendation.

Bull Case

The case for CARG:

  • As an established S&P 500 member in Communication Services, it brings scale and a long operating history.
Bear Case

The case against CARG:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: CarGurus Inc is a small-cap communication services business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at n/a earnings, which our model scores Unrated (0/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Analyst Ratings

What 22 Wall Street analysts covering CARG recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.

Buy
consensus · score 3.9 / 5 across 22 analysts
Strong Buy 5Buy 9Hold 8Sell 0Strong Sell 0

Latest SEC Filings

CARG's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.

CARG — frequently asked questions

Is CARG a good stock to buy?

We don't give buy or sell advice. Review CarGurus Inc's fundamentals, valuation, and 5-year financials on this page, then make your own decision — and consider a licensed professional.

Where does CARG's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from CarGurus Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for CARG calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this CARG analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell CARG. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.