CarGurus Valuation
| CARG Stock | USD 35.73 0.57 1.62% |
At this time, the firm appears to be overvalued. CarGurus shows a prevailing Real Value of $31.07 per share. The current price of the firm is $35.73. Our model approximates the value of CarGurus from analyzing the firm fundamentals such as Profit Margin of (0.05) %, current valuation of 3.62 B, and Return On Equity of -0.0774 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting CarGurus' valuation include:
Price Book 7.6043 | Enterprise Value 3.6 B | Enterprise Value Ebitda 34.9772 | Price Sales 4.1018 | Forward PE 19.0476 |
Overvalued
Today
Please note that CarGurus' price fluctuation is very steady at this time. Calculation of the real value of CarGurus is based on 3 months time horizon. Increasing CarGurus' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the CarGurus stock is determined by what a typical buyer is willing to pay for full or partial control of CarGurus. Since CarGurus is currently traded on the exchange, buyers and sellers on that exchange determine the market value of CarGurus Stock. However, CarGurus' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 35.73 | Real 31.07 | Target 22.5 | Hype 34.64 | Naive 35.23 |
The real value of CarGurus Stock, also known as its intrinsic value, is the underlying worth of CarGurus Company, which is reflected in its stock price. It is based on CarGurus' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of CarGurus' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of CarGurus helps investors to forecast how CarGurus stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of CarGurus more accurately as focusing exclusively on CarGurus' fundamentals will not take into account other important factors: When choosing an evaluation method for CarGurus, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.
CarGurus Cash |
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CarGurus Valuation Trend
Comparing CarGurus' enterprise value against its market capitalization is a good way to estimate the value of CarGurus uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
CarGurus Revenue by Product
CarGurus Total Value Analysis
CarGurus is currently projected to have valuation of 3.62 B with market capitalization of 3.65 B, debt of 194.39 M, and cash on hands of 404.43 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the CarGurus fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
3.62 B | 3.65 B | 194.39 M | 404.43 M |
CarGurus Investor Information
About 96.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.47. CarGurus recorded a loss per share of 0.45. The entity had not issued any dividends in recent years. Based on the key indicators related to CarGurus' liquidity, profitability, solvency, and operating efficiency, CarGurus may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | 99.7 M | 124.5 M |
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CarGurus Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CarGurus has an asset utilization ratio of 99.49 percent. This implies that the Company is making $0.99 for each dollar of assets. An increasing asset utilization means that CarGurus is more efficient with each dollar of assets it utilizes for everyday operations.CarGurus Ownership Allocation
CarGurus holds a total of 87.95 Million outstanding shares. The majority of CarGurus outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in CarGurus to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in CarGurus. Please pay attention to any change in the institutional holdings of CarGurus as this could imply that something significant has changed or is about to change at the company. On April 1, 2021, Senator John W Hickenlooper of US Senate acquired under $15k worth of CarGurus's common stock.CarGurus Profitability Analysis
The company reported the previous year's revenue of 914.24 M. Net Income was 22.05 M with profit before overhead, payroll, taxes, and interest of 657.72 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates CarGurus' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in CarGurus and how it compares across the competition.
About CarGurus Valuation
The stock valuation mechanism determines CarGurus' current worth on a weekly basis. Our valuation model uses a comparative analysis of CarGurus. We calculate exposure to CarGurus's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of CarGurus's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 651.5 M | 493.7 M | |
| Pretax Profit Margin | 0.06 | 0.06 | |
| Operating Profit Margin | 0.04 | 0.05 | |
| Net Profit Margin | 0.03 | 0.05 | |
| Gross Profit Margin | 0.71 | 0.91 |
CarGurus Growth Indicators
Investing in growth stocks can be very risky. If the company such as CarGurus does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 114.2 M | |
| Quarterly Earnings Growth Y O Y | 0.265 | |
| Forward Price Earnings | 19.0476 |
CarGurus Current Valuation Indicators
Valuation refers to the process of determining the present value of CarGurus and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value CarGurus we look at many different elements of the entity such as CarGurus's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as CarGurus, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use CarGurus' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes CarGurus' worth.Complementary Tools for CarGurus Stock analysis
When running CarGurus' price analysis, check to measure CarGurus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarGurus is operating at the current time. Most of CarGurus' value examination focuses on studying past and present price action to predict the probability of CarGurus' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarGurus' price. Additionally, you may evaluate how the addition of CarGurus to your portfolios can decrease your overall portfolio volatility.
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