# CarGurus Inc. Class A Common Stock (CARG) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $33.74, market value $3.0 billion.

## Valuation
- **P/E (trailing): 17.4×** (5-yr avg 89.3×, 3-yr avg 111.5×). CarGurus Inc. Class A Common Stock trades at 17.4× trailing earnings, well below its own five-year average of 89.3×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 11.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.02**. A PEG of 0.02 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.1×**. Each dollar of revenue is priced at 3.1×.
- **Price / book: 12.8×**. The shares trade at 12.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 9.3×**. Enterprise value is 9.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 10.5%** (5-yr avg 6.4%). Free cash flow equals 10.5% of the market value, above its five-year average of 6.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.7%**. The inverse of the P/E: 5.7% of the price is earned each year.

## Profitability
- **Gross margin: 93.7%**. CarGurus Inc. Class A Common Stock keeps 93.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 28.5%**. 28.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 17.2%**. 17.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 41.7%**. 41.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 117.0%**. Return on all capital, debt included, is 117.0%: comfortably above what that capital costs.
- **Return on assets: 26.6%**. Each dollar of assets produces 26.6% of profit.

## Growth
- **Revenue growth (1 yr): 13.7%** (3-yr -18.2%/yr, 5-yr 10.5%/yr). Revenue grew 13.7% over the last year, against 10.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 675.0%** (3-yr 35.7%/yr, 5-yr 17.9%/yr). Earnings per share rose 675.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 4.9%/yr**. Free cash flow has compounded at 4.9% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. CarGurus Inc. Class A Common Stock holds more cash than debt.
- **Altman Z-score: 9.65**. A Z-score of 9.65 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. CarGurus Inc. Class A Common Stock does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (13 analysts). 13 analysts cover CarGurus Inc. Class A Common Stock; the consensus is buy, with an average price target of $41.38 (+23% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -6.7%** (YTD -12.0%, 3-mo 23.0%). The shares are down 6.7% over twelve months including dividends.
- **From 52-week high: -18.1%** (27.9% above the low). Trading 18% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 38**. An RSI of 38 is neutral.
- **Beta (1 yr): 0.62** (volatility 38%). Beta of 0.62 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CARG · Page: https://foliofundamentals.com/stocks/carg

Not investment advice.