CarGurus, Inc. (CARG) P/E Ratio History
Deep ValueTrading at 23.4x · 10th percentile of 5-year range · Significant discount to historical valuation · Data 2017–2026
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P/E Ratio Analysis
As of July 6, 2026, CarGurus, Inc. (CARG) trades at a price-to-earnings ratio of 23.4x, with a stock price of $36.24 and trailing twelve-month earnings per share of $1.57.
The current P/E is 56% below its 5-year average of 53.5x. Over the past five years, CARG's P/E has ranged from a low of 20.9x to a high of 203.0x, placing the current valuation at the 10th percentile of its historical range.
Compared to the Consumer Cyclical sector median P/E of 21.3x, CARG is roughly in line with its sector peers. The sector includes 309 companies with P/E ratios ranging from 0.1x to 184.9x.
The PEG ratio of 1.31 (P/E divided by 675% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, CARG trades roughly in line with the S&P 500 median P/E of 25.6x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our CARG DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
CARG Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
CARG P/E vs Peers
Digital Auto Retail and Marketplaces peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $633M | 35.4 | - | -56% | |
| $15B | 33.8 | 6.34 | +60% | |
| $74B | 40.6 | - | +431%Best | |
| $7B | 30.3 | - | -48% | |
| $6B | 10.9 | 0.34Best | +1% | |
| $12B | 12.7 | 0.80 | -2% | |
| $7B | 9.5 | 0.89 | +9% | |
| $4B | 8.2Lowest | 0.59 | +17% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
CARG Historical P/E Data (2017–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | - | $34.05 | $1.52 | 22.4x | -74% |
| FY2025 Q4 | Dec 31 2025 | $38.35 | $1.55 | 24.7x | -72% |
| FY2025 Q3 | - | $37.23 | $1.47 | 25.3x | -71% |
| FY2025 Q2 | Jun 30 2025 | $33.47 | $1.23 | 27.2x | -69% |
| FY2025 Q1 | Mar 31 2025 | $29.13 | $0.35 | 83.2x | -5% |
| FY2024 Q4 | - | $36.54 | $0.18 | 203.0x | +131% |
| FY2024 Q1 | Mar 31 2024 | $23.08 | $0.33 | 69.9x | -20% |
| FY2023 Q4 | Dec 31 2023 | $24.16 | $0.23 | 105.0x | +20% |
| FY2023 Q3 | Sep 30 2023 | $17.52 | $0.65 | 27.0x | -69% |
| FY2023 Q2 | Jun 30 2023 | $22.63 | $0.59 | 38.4x | -56% |
| FY2023 Q1 | Mar 31 2023 | $18.68 | $0.60 | 31.1x | -65% |
| FY2022 Q4 | Dec 31 2022 | $14.01 | $0.67 | 20.9x | -76% |
| FY2021 Q3 | - | $31.41 | $0.88 | 35.7x | -59% |
| FY2021 Q2 | Jun 30 2021 | $26.23 | $0.93 | 28.2x | -68% |
| FY2021 Q1 | Mar 31 2021 | $23.83 | $0.76 | 31.4x | -64% |
| FY2020 Q4 | - | $31.73 | $0.68 | 46.7x | -47% |
| FY2020 Q3 | Sep 30 2020 | $21.63 | $0.58 | 37.3x | -58% |
| FY2020 Q2 | - | $25.35 | $0.38 | 66.7x | -24% |
| FY2020 Q1 | - | $18.94 | $0.37 | 51.2x | -42% |
| FY2019 Q4 | - | $35.18 | $0.37 | 95.1x | +8% |
| FY2019 Q3 | Sep 30 2019 | $30.95 | $0.36 | 86.0x | -2% |
| FY2019 Q2 | Jun 30 2019 | $36.11 | $0.38 | 95.0x | +8% |
| FY2019 Q1 | Mar 31 2019 | $40.06 | $0.62 | 64.6x | -26% |
| FY2018 Q4 | Dec 31 2018 | $33.73 | $0.56 | 60.2x | -31% |
| FY2018 Q3 | Sep 30 2018 | $55.69 | $0.47 | 118.5x | +35% |
| FY2018 Q2 | Jun 30 2018 | $34.74 | $0.37 | 94.1x | +7% |
| FY2018 Q1 | Mar 31 2018 | $38.47 | $0.10 | 397.8x | +353% |
| FY2017 Q4 | Dec 31 2017 | $29.98 | $0.06 | 472.1x | +438% |
Average P/E for displayed period: 87.8x
Intrinsic Valuation
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Historical Returns
9+ years return with dividends reinvested.
DCA Calculator
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Peer Comparison
Compare growth, multiples, and margins vs sector.
CARG — Frequently Asked Questions
Quick answers to the most common questions about buying CARG stock.
What is CARG's P/E ratio?
CarGurus, Inc. (CARG) trailing twelve-month P/E ratio is 23.4x, based on TTM diluted EPS of $1.57. The 5-year average P/E is 53.5x and the historical range spans 20.9x to 203.0x.
Is CARG stock overvalued or undervalued?
CARG trades at 23.4x P/E, below its 5-year average of 53.5x. At the 10th percentile of its historical range (20.9x–203.0x), the stock is priced at a discount to its own history.
Is CARG stock expensive?
No, CARG is not expensive on a historical basis. The current P/E of 23.4x is below the 5-year average of 53.5x and sits at the 10th percentile of its valuation range.
What is CARG's historical P/E range?
Over the past 5 years, CARG's P/E ratio has ranged from 20.9x to 203.0x, with a median of 37.3x and an average of 53.5x. The current P/E of 23.4x places the stock at the 10th percentile of this range. Full historical data spans 2017–2026.
How does CARG's P/E compare to the S&P 500?
CARG trades at 23.4x P/E versus the S&P 500 median of 25.6x. The 9% discount to the market suggests lower growth expectations or perceived higher risk.
How does CARG's valuation compare to Consumer Cyclical peers?
CarGurus, Inc. P/E of 23.4x compares to the Consumer Cyclical sector median of 21.3x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is CARG's PEG ratio?
CARG PEG ratio is 1.31, based on a P/E of 23.4x and EPS growth of 675.0%. A PEG between 1 and 2 suggests valuation aligns with growth expectations — typically considered fair.
What is CARG's earnings yield?
CARG earnings yield is 4.28%, the inverse of its 23.4x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.