Assessing CarGurus (CARG) Valuation As Marketplace Growth Slows And Revenue Per User Declines

Simply Wall St.

Feb 18

Recent commentary around CarGurus (CARG) centers on softer marketplace trends, with modest 2.5% annual growth in paying dealers and an 8.1% annual decline in average revenue per user, which points to ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing CarGurus (CARG) Valuation As Marketplace Growth Slows And Revenue Per User Declines\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-18 09:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/assessing-cargurus-carg-valuation-as-marketplace-growth-slow><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Recent commentary around CarGurus (CARG) centers on softer marketplace trends, with modest 2.5% annual growth in paying dealers and an 8.1% annual decline in average revenue per user, which points to ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/assessing-cargurus-carg-valuation-as-marketplace-growth-slow\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CARG","symbol_name":"Cargurus Inc.","start_time":0,"source_url":"https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/assessing-cargurus-carg-valuation-as-marketplace-growth-slow","article_id":"2612949241","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4300003-choice1-main-header/1585186588101"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/media/nasdaq-carg/cargurus/news/assessing-cargurus-carg-valuation-as-marketplace-growth-slow","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2612949241","pubTimestamp":1771377769,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Recent commentary around CarGurus (CARG) centers on softer marketplace trends, with modest 2.5% annual growth in paying dealers and an 8.1% annual decline in average revenue per user, which points to ongoing demand and retention challenges.\nSee our latest analysis for CarGurus.\nCarGurus’ share price has softened over 2025, with a 30 day share price return of 18.85% and a year to date share price return of 26.35%. The 1 year total shareholder return is 30.57% and the 3 year total shareholder...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"CARG":"Cargurus Inc."},"translate_title":"随着市场增长放缓和每用户收入下降，评估CarGurus(CARG)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CARG":1.5},"content_text":"Recent commentary around CarGurus (CARG) centers on softer marketplace trends, with modest 2.5% annual growth in paying dealers and an 8.1% annual decline in average revenue per user, which points to ongoing demand and retention challenges. See our latest analysis for CarGurus. CarGurus’ share price has softened over 2025, with a 30 day share price return of 18.85% and a year to date share price return of 26.35%. The 1 year total shareholder return is 30.57% and the 3 year total shareholder return is 67.86%, suggesting momentum has faded recently compared to its longer term track record. If marketplace headwinds have you reassessing your watchlist, it could be a good moment to look across the market using our screener of 23 top founder-led companies. With revenue and net income still growing but marketplace metrics under pressure, and the share price down sharply over the past year, is CarGurus quietly on sale here, or is the market already baking in all the future upside? AdvertisementMost Popular Narrative: 31.2% Undervalued Compared to CarGurus’ last close at $27.73, the most followed narrative pegs fair value near $40.29, using a detailed cash flow and earnings roadmap.  Leveraging brand trust, scale, and consumer engagement through personalized, AI-enhanced shopping experiences and omni-channel dealer integration increases user stickiness and differentiation in a consolidating digital automotive marketplace, supporting long-term growth in revenue, market share, and profitability.  Read the complete narrative. Curious what has to happen for that higher valuation to make sense? The narrative leans on rising margins, steady top line progress, and a future earnings multiple that assumes continued relevance against bigger platforms. The exact mix of growth, profitability and discount rate inputs may surprise you. Result: Fair Value of $40.29 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Amazon Autos partnership with Ford and the retreat from low margin wholesale activity both raise questions about future competition and the extent to which CarGurus’ model can be diversified. Find out about the key risks to this CarGurus narrative. Next Steps If this mix of optimism and question marks leaves you undecided, now is a good time to review the full picture yourself and weigh the upside carefully. You can start by checking out 4 key rewards to see what the market is currently excited about. Ready to hunt for your next idea? If CarGurus has you thinking more critically about price and quality, do not stop here. Broaden your search and pressure test your thesis against other opportunities.  Target stable income by reviewing companies in our list of 13 dividend fortresses that focus on higher yields with an eye on resilience. Spot potential bargains quickly by scanning our hand picked 56 high quality undervalued stocks that combine quality fundamentals with more appealing prices. Prioritize capital protection by checking companies highlighted in our 81 resilient stocks with low risk scores that score well on financial strength and risk factors.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}