CarGurus, Inc. (CARG) Stock

CarGurus, Inc. (CARG) is a Technology stock trading at $36.90 (as of 2026-08-20), with a market capitalization of $3.36B and a trailing P/E of 21.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace that allows customers to search for new and used car listings from its dealers; and connects dealers to a large audience of informed and engaged consumers while providing dealers with actionable data-based insights. It also offers Digital Deal which allows shoppers to start purchase from a VDP on eligible listings that provides them with purchase options; Finance in Advance, where eligible consumers can pre-qualify for financing on cars from dealerships that offer financing from partners; Sell My Car – Top Dealer Offers which allows dealers to make tailored trade-in offers; and Sell My Car – Instant Max Cash Offer which allows consumers to sell vehicles to dealers online. In addition, the company provides dealer listings and data insights products; 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.

Understand CarGurus, Inc.: how it makes money

CarGurus runs an online automotive marketplace that lets shoppers search dealer vehicle listings and helps dealers reach consumers, and it also operates a Digital Wholesale offering that connects transactions in the used-vehicle ecosystem, earning money from marketplace revenue and digital wholesale-related revenue.

CarGurus monetizes dealer-to-shopper attention and transactions through its marketplace (including subscription-like revenue components) and complements that with Digital Wholesale, so its profit power depends on sustaining active listings and monetizing dealer demand while keeping software-like economics (very high gross margin).

Business quality (Solid): The business model is clearly focused on connecting shoppers and dealers through listings, data-driven dealer insights, and additional digital wholesale activity, with very high gross margin and positive operating margin, but the available information does not show how stable or growing dealer and wholesale monetization is quarter to quarter.

Valuation: Trades at 18× trailing earnings · $3B market cap.

Bull case

  • Marketplace built around dealer listings and shopper search: CarGurus provides an online platform where customers search new and used car listings and dealers reach an audience of engaged consumers, which supports generating marketplace revenue.
  • High gross margin and solid operating profitability: For the latest provided period (2026-03-31), CarGurus reports gross margin of 92.2% and operating margin of 16.5%, suggesting strong unit economics from its platform model.

Bear case

  • Dependence on dealer participation and monetization: Because the platform activity described relies on dealers providing listings and on shoppers engaging with those listings, changes in dealer supply, deal flow, or pricing for marketplace offerings could pressure revenue and profitability.
  • Segment mix uncertainty between U.S. Marketplace and Digital Wholesale: CarGurus operates through U.S. Marketplace and Digital Wholesale, so performance could vary if one segment weakens relative to the other.
Valuation — source: SEC EDGAR (first-party)
Price$36.90
Market Cap$3.36B
P/E Ratio21.2
EV / EBITDA14.7
Price / Book12.71
Price / Sales3.44
FCF Yield15.2%
DCF Value (model)$32.16
DCF Upside vs Price-12.8%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$906.98M
Net Margin17.2%
Revenue Growth (YoY)1.4%
EPS Growth (YoY)690.0%
FCF Growth (YoY)60.2%
Financial Health — source: SEC EDGAR
Altman Z-Score11.41 (safe)
Piotroski F-Score7/9 (strong)
Valuation vs Sector & Industry
Stock P/E21.2
Sector P/E (Technology)33.9
Industry P/E (Business Services)30.0
vs Sector-37.5%
vs Industry-29.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($409.03M)
Institutional Holders Tracked10
Congressional Trades (recent)5
Company
SectorTechnology
IndustryBusiness Services
CEOJason Trevisan
Employees1,282
CountryUS
IPO Date2017-10-12

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CARG earnings history · CARG institutional & insider holders · CARG KPIs & operating metrics · CARG financials · CARG investor presentations & press releases · CARG SEC filings · CARG peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.