Is Cargurus, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Cargurus, Inc. has moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 18, a PEG ratio of 0.04, and an impressive ROCE of 71.49%. In comparison, its peer Yelp, Inc. has a P/E of 13.15, while MakeMyTrip Ltd. shows a much higher P/E of 95.54, highlighting Cargurus' relative attractiveness in the market.
Cargurus has outperformed the S&P 500 in several periods, notably achieving a 25.23% return over the past year compared to the S&P 500's 17.14%. This performance reinforces the notion that Cargurus is undervalued relative to its growth potential and market peers.