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 perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 18, an EV to EBITDA ratio of 14.19, and a PEG ratio of 0.04. In comparison, peers such as Yelp, Inc. have a P/E ratio of 13.15, while MakeMyTrip Ltd. shows a significantly higher P/E ratio of 95.54, highlighting Cargurus' relative valuation position.
Despite recent fluctuations, Cargurus has outperformed the S&P 500 over the three-year period with a return of 146.78% compared to the index's 81.19%. However, the company's year-to-date return of -4.43% lags behind the S&P 500's 13.30%, suggesting a mixed performance in the shorter term. Overall, Cargurus, Inc. is fairly valued in the current market context.