A Look At CarGurus (CARG) Valuation After Recent Share Price Weakness

Simply Wall St.01-17

CarGurus (CARG) has been drawing attention after recent share price moves, with the stock now around US$34.74. For investors, the key question is how this lines up with the company’s fundamentals. See...

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See...</p>\n\n<a href=\"https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/a-look-at-cargurus-carg-valuation-after-recent-share-price-w\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look At CarGurus (CARG) Valuation After Recent Share Price Weakness</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look At CarGurus (CARG) Valuation After Recent Share Price Weakness\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-17 00:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/a-look-at-cargurus-carg-valuation-after-recent-share-price-w><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>CarGurus (CARG) has been drawing attention after recent share price moves, with the stock now around US$34.74. For investors, the key question is how this lines up with the company’s fundamentals. See...</p>\n\n<a href=\"https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/a-look-at-cargurus-carg-valuation-after-recent-share-price-w\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4077","symbol_name":"互动媒体与服务","start_time":0,"source_url":"https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/a-look-at-cargurus-carg-valuation-after-recent-share-price-w","article_id":"2604918256","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4300003-choice1-main-header/1585186588101"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/a-look-at-cargurus-carg-valuation-after-recent-share-price-w","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2604918256","pubTimestamp":1768581263,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"CarGurus (CARG) has been drawing attention after recent share price moves, with the stock now around US$34.74. For investors, the key question is how this lines up with the company’s fundamentals.\nSee our latest analysis for CarGurus.\nRecent trading has been choppy, with a 7 day share price return of a 10.05% decline and a 30 day share price return of a 9.03% decline. However, the 3 year total shareholder return of 119.73% points to much stronger longer term momentum that has cooled...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4077":"互动媒体与服务","CARG":"Cargurus Inc.","BK4587":"ChatGPT概念","AI":"C3.ai, Inc.","BK4588":"碎股","BK4551":"寇图资本持仓","BK4528":"SaaS概念","BK4543":"AI","BK4585":"ETF&股票定投概念","BK4023":"应用软件"},"translate_title":"近期股价疲软后CarGurus(CARG)估值一览","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CARG":1.5,"AI":0.62},"content_text":"CarGurus (CARG) has been drawing attention after recent share price moves, with the stock now around US$34.74. For investors, the key question is how this lines up with the company’s fundamentals. See our latest analysis for CarGurus. Recent trading has been choppy, with a 7 day share price return of a 10.05% decline and a 30 day share price return of a 9.03% decline. However, the 3 year total shareholder return of 119.73% points to much stronger longer term momentum that has cooled recently. If CarGurus has you rethinking opportunities around auto platforms and vehicle demand, it could be a good moment to scan auto manufacturers for other ideas in the space. So with CarGurus trading near US$34.74, a value score of 3, an implied discount to analyst targets and an intrinsic value gap, is the market overlooking upside potential here, or already pricing in future growth? AdvertisementMost Popular Narrative: 15.2% Undervalued With CarGurus last closing at US$34.74 against a narrative fair value of about US$40.96, the current price sits below that framework, which is built on detailed earnings, margin and discount rate assumptions.  Leveraging brand trust, scale, and consumer engagement through personalized, AI-enhanced shopping experiences and omni-channel dealer integration increases user stickiness and differentiation in a consolidating digital automotive marketplace, supporting long-term growth in revenue, market share, and profitability.  Read the complete narrative. Curious what kind of revenue run rate, margin profile and earnings multiple underpin that fair value? The narrative is based on rising profitability and a specific return expectation shaped by an 8.39% discount rate. The detailed cash flow path behind that view is where the real story sits. Result: Fair Value of $40.96 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to weigh the risk that Amazon Autos and other OEM backed platforms could squeeze marketplace economics, while a retreat from wholesale may limit diversification. Find out about the key risks to this CarGurus narrative. Another View: Market Pricing Versus Earnings Ratio While the narrative fair value points to upside, the current P/E of 21.8x tells a different story. It sits above the US Interactive Media and Services industry at 15.3x and peers at 12.7x, but is close to a fair ratio of 22.4x. Is the market already paying up for the future here? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:CARG P/E Ratio as at Jan 2026 Build Your Own CarGurus Narrative If you are not fully aligned with this view or prefer to test the numbers yourself, you can build a custom thesis in minutes with Do it your way. A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding CarGurus. Looking for more investment ideas? If CarGurus has sharpened your thinking, do not stop here. Broaden your watchlist now so you are not playing catch up when new themes emerge.  Spot early movers by checking out these 3539 penny stocks with strong financials that already back their stories with stronger financials than many expect from this corner of the market. Ride the AI wave more deliberately by scanning these 24 AI penny stocks that connect artificial intelligence with scalable business models rather than just headlines. Target value opportunities by reviewing these 868 undervalued stocks based on cash flows that screen for prices that sit below cash flow based estimates.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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