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 slight decline in perceived value. The company appears to be fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 18, an EV to EBITDA of 14.19, and a PEG ratio of 0.04, which suggest that the stock is reasonably priced relative to its earnings growth potential.
In comparison to peers, Cargurus has a P/E ratio of 22.21, which is higher than Yelp, Inc. at 13.15, but lower than MakeMyTrip Ltd. at 95.54, indicating a competitive position within its industry. Recent stock performance shows that Cargurus has outperformed the S&P 500 over the 3-year period with a return of 146.78% compared to the S&P 500's 81.19%, although it has underperformed in the 1-year and year-to-date comparisons.