CarGurus Stock Price and Value Analysis

Should you buy CarGurus stock? (NASDAQ:CARG). Let's see how it does in our automated value investing analysis system.

CARG Free Cash Flow Trend

Free Cash Flow trendline for CARG
Free Cash Flow trendline for CarGurus

Based on historical returns, we believe that CarGurus can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantagesNeutral
None.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This company is less known than others.
  • This stock looks overpriced.
  • This company pays no dividend.

Inside the CARG Numbers

CARG Price
(CarGurus stock price per share)
$25.37
[?] CARG Fair Price
(based on intrinsic value)
$2.64
[?] CARG Safety Price (based on a variable margin of safety) $1.58
[?] PE Ratio versus Sector 126% higher than other Technology stocks
[?] PE Ratio versus Industry 0% lower than other Internet Content & Information stocks
[?] Free Cash Flow Jitter 47%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 9,806,922 shares shorted. With 86,611,776 shares available for purchase and an average trading volume over the past 10 trading days of 1,340,042, it would take at least 7.318 days for all of the short holders to cover their shorts.

Is CarGurus Stock on Sale?

We believe that CarGurus may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

CarGurus looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy CARG Stock?

Does CarGurus have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.