Cargurus Stock Fair Value – CarGurus’ Intrinsic Value Estimated at US$26.29: Key Insights Revealed
July 5, 2023
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CARGURUS ($NASDAQ:CARG): CarGurus, Inc. is an online automotive marketplace connecting car buyers and sellers, providing them with both the tools and information needed to make smart and confident decisions about their vehicles. Recently, an analysis of CarGurus’ intrinsic value reveals a projected fair value of US$26.29, as determined by a 2 Stage Free Cash Flow to Equity model. Here are the key insights that such a model revealed. A further analysis of the company’s financial performance showed that it was likely to continue to generate positive free cash flow during this period. This suggests that CarGurus has potential for further growth and profitability.
This indicates that the company is not overly reliant on debt to finance its operations, which is a positive sign for investors. This suggests that the company is financially stable and has sufficient liquidity to meet its short-term obligations. Overall, this analysis of CarGurus’ intrinsic value reveals a projected fair value of US$26.29, as determined by a 2 Stage Free Cash Flow to Equity model. These key insights provide investors with a better understanding of CarGurus’ financial standing and prospects for growth and profitability in the future.
Price History
On Monday, CarGurus (CARG) opened at an estimated intrinsic value of US$26.29, closing at US$22.7, up by 0.2% from its last closing price of US$22.6. CarGurus is an online automotive marketplace for new and used cars, allowing users to search for vehicles and compare prices, features, and ratings. This estimated intrinsic value was gained from the analysis of CarGurus’ financials and the macroeconomic environment. CarGurus’ estimated intrinsic value reflects the company’s current performance and potential growth. It takes into account the amount of money that can be made from the company’s assets, its competitive advantage, and its ability to generate future cash flows.
The estimated intrinsic value also accounts for the current economic environment and market conditions, which can impact the company’s performance. In conclusion, the estimated intrinsic value of CarGurus is US$26.29. Despite its current stock opening at US$22.5 and closing at US$22.7, the estimated intrinsic value suggests that CarGurus has potential to grow in the long term. With its financials and the macroeconomic environment taken into account, investors can get a better understanding of the company’s potential and make more informed decisions about investing in CarGurus. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cargurus. More…
| Total Revenues | Net Income | Net Margin |
| 1.46k | 272.01 | 11.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cargurus. More…
| Operations | Investing | Financing |
| 229.39 | 40.58 | -128.96 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cargurus. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.05k | 323.3 | 6.09 |
Key Ratios Snapshot
Some of the financial key ratios for Cargurus are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 33.6% | 35.1% | 6.6% |
| FCF Margin | ROE | ROA |
| 14.4% | 8.4% | 5.7% |
Analysis – Cargurus Stock Fair Value
At GoodWhale, we analyzed the fundamentals of CARGURUS and found that it is currently undervalued. Our proprietary Valuation Line revealed that its intrinsic value is approximately $42.9, while its stock price is currently trading at $22.7 – which is 47.0% lower than its intrinsic value. This presents a unique buying opportunity for investors looking to take advantage of CARGURUS’s undervalued stock. CarGurus_Intrinsic_Value_Estimated_at_US26.29_Key_Insights_Revealed”>More…
Peers
In the online automotive marketplace, CarGurus Inc competes with Liberty TripAdvisor Holdings Inc, Points.com Inc, and Camplify Holdings Ltd. CarGurus Inc is an online automotive marketplace connecting car buyers and sellers. Liberty TripAdvisor Holdings Inc is a online travel company that offers a search engine for vacation rentals. Points.com Inc is a provider of loyalty programs. Camplify Holdings Ltd is an online marketplace for RV rentals and campgrounds.
– Liberty TripAdvisor Holdings Inc ($NASDAQ:LTRPA)
Liberty TripAdvisor Holdings Inc is a online travel company. The company operates through two segments, Vacation Packages and Cruises. It offers a portfolio of travel products and services through its websites. The company was founded in 2008 and is headquartered in Denver, Colorado.
Summary
Investing analysis of CarGurus, Inc. reveals a fair value of US$26.29 based on 2 Stage Free Cash Flow to Equity. CarGurus, a leading online automotive marketplace, is projected to have strong cash flows in the near future, making it an attractive investment proposition. The company operates on a global scale and has a diverse customer base, giving it considerable competitive advantages in the industry.
It is also well capitalized and has a high level of profitability, which makes it a great long-term investment prospect for investors. In conclusion, CarGurus appears to be an attractive investment opportunity with its strong cash flows and competitive advantages.
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