Is Cargurus, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Cargurus, Inc. has moved from very attractive to attractive, indicating a shift in perception. The company appears to be fairly valued given its P/E ratio of 18, a PEG ratio of 0.04, and an impressive ROCE of 71.49%. In comparison, peers such as Yelp, Inc. have a P/E of 13.15, while MakeMyTrip Ltd. shows a significantly higher P/E of 95.54, highlighting Cargurus' relative valuation position.
Despite a recent dip in stock performance, Cargurus has outperformed the S&P 500 over the three-year period, returning 146.78% compared to the index's 81.19%. This suggests that while the stock is currently fairly valued, its historical performance may indicate potential for future growth.