Is CarGurus (CARG) overvalued or fairly valued?

MarketChacha shows CarGurus's valuation in context — a trailing P/E of about 22.1, a forward P/E of about 11.5, a price-to-book of about 12.8 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does CarGurus's reported profit turn into cash?

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash. MarketChacha computes this cash-conversion check (3.16×) from reported figures — education, not a rating.

What is CarGurus's revenue?

CarGurus reported revenue of $907.0M for FY2025, with net profit of $155.9M, per official filings.

What is the share price of CarGurus (CARG)?

CarGurus last traded at $33.64 (-4.1% on the day), as of 7/22/2026 — a delayed quote shown for education, not investment advice.

CarGurus

CARG · NYSE · Communication Services · United States

$33.64-4.1%

Delayed · as reported by Yahoo Finance · as of Jul 22, 2026, 7:32 PM

Snapshot

TickerCARG

ExchangeNYSE

SectorCommunication Services

IndustryAuto & Truck Dealerships

CountryUnited States

Employees1,218

HeadquartersBoston, United States

Market cap$3.0B

P/E (TTM)22.1

P/B12.8

Volume532.67K

Websitewww.cargurus.com

Filings tracked3

About CarGurus

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.

Profile as reported by Yahoo Finance.

Who owns it

Insiders3.0%
Institutions97.0%
Public & other0.0%

504 institutional holders

As reported by Yahoo Finance.

Top holders

Blackrock Inc.15.81%
Wellington Management Group, LLP7.83%
Vanguard Portfolio Management LLC6.10%
Vanguard Capital Management LLC4.60%
State Street Corporation4.07%
Prevatt Capital Ltd3.26%
Orbis Allan Gray Ltd3.07%
Geode Capital Management, LLC2.77%

Largest institutional holders, as reported by Yahoo Finance (as of 3/31/2026).

Forensic scorecard

No major accounting red flags in the fundamentals we have — profit is backed by cash and returns look healthy.

Cash conversion3.16×

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash.

Net margin trend5.3% → 17.2%

Margin has expanded by about 11.9 points — the business is getting more profitable.

Return on equity41.7%

Latest ROE of 41.7% — capital is generating a healthy return.

Growth qualityrev 14% · PAT 105%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $257.3M · EPS 0.63

Est. earnings growth +10.9%

Next fiscal year

Rev $1.1B · EPS 2.92

Est. earnings growth +15.9%

Analyst consensus estimates — not the company's own guidance. As reported by Yahoo Finance.

$26.3952-wk range$39.42

Delayed · as reported by Yahoo Finance

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Market cap

$3.0B

Day change

-4.1%

P/E (TTM)

22.1

Fwd P/E

11.5

P/B

12.8

Beta

1.18

Revenue (FY2025)

$907.0M

Net margin

17.2%

ROE

41.7%

Revenue CAGR (2y)

+14.0%

Profit CAGR (2y)

+105.4%

EPS (FY2025)

1.55

Net profit (FY2025)

$155.9M

Market figures: Delayed · as reported by Yahoo Finance. Financials as reported in company filings.

Ask MarketChacha about CARG

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Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2025	$907.0M	$155.9M	1.55	17.2%	41.7%
FY2024	$798.0M	$21.0M	0.20	2.6%	3.9%
FY2023	$698.4M	$36.9M	0.19	5.3%	6.0%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q1	$243.6M	$32.2M	0.34	13.2%
2025Q4	$241.1M	—	0.51	—
2025Q3	$231.7M	$44.7M	0.45	19.3%
2025Q2	$222.0M	$22.3M	0.22	10.1%
2025Q1	$212.2M	$39.0M	0.37	18.4%
2024Q4	$210.2M	—	0.43	—
2024Q3	$204.6M	$22.5M	0.21	11.0%
2024Q2	$195.9M	$-68.7M	-0.65	-35.1%
2024Q1	$187.4M	$21.3M	0.20	11.4%
2023Q3	$219.4M	$22.3M	0.17	10.2%
2023Q2	$239.7M	$16.4M	0.12	6.8%
2023Q1	$232.0M	$16.1M	0.10	7.0%

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

8-K — Shareholder vote results
SEC6/4/2026material
8-K — Results of operations, Exhibits
SEC5/7/2026material
10-Q filing
SEC5/7/2026

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed · as reported by yahoo finance) are delayed and shown for reference only. Verify with the linked sources before acting.