CARG (CarGurus) EBIT: $258.5 Mil (TTM As of Mar. 2026)


CARG CarGurus Inc CARG
84 GF Score
Price $31.09
GF Value $40.21
Valuation Modestly Undervalued
! 3 Warning Signs
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What is CarGurus EBIT?

CarGurus CARG +2.14% 84 EBIT is $258.5 Mil as of Mar. 2026. GuruFocus rates CARG with a GF Score™ of 84/100 and a GF Value™ of $40.21 (Modestly Undervalued). The stock has 3 warning signs investors should review.

CarGurus's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $59.3 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $258.5 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. CarGurus's annualized ROC % for the quarter that ended in Mar. 2026 was 45.12%. CarGurus's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 98.79%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. CarGurus's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.85%.


CarGurus  (NAS:CARG) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

CarGurus's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=237.12 * ( 1 - 21.67% )/( (425.731 + 397.58)/ 2 )
=185.736096/411.6555
=45.12 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=661.897 - 53.757 - ( 190.518 - max(0, 100.539 - 282.948+190.518))
=425.731

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

CarGurus's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=237.12/( ( (248.433 + max(1.36, 0)) + (228.772 + max(1.493, 0)) )/ 2 )
=237.12/( ( 249.793 + 230.265 )/ 2 )
=237.12/240.029
=98.79 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(41.936 + 0 + 50.494) - (53.757 + 23.562 + 13.751)
=1.36

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(44.568 + 0 + 45.255) - (58.112 + 24.656 + 5.562)
=1.493

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

CarGurus's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=258.469/2919.865
=8.85 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


CarGurus EBIT Related Terms


CarGurus EBIT Historical Data

* Premium members only.

The historical data trend for CarGurus's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

CarGurus EBIT Chart

CarGurus Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 148.27 108.48 120.33 168.90 244.94

CarGurus Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 50.65 54.48 54.67 90.04 59.28

CARG vs SAH, MCW, DRVN: EBIT Comparison

For the Auto & Truck Dealerships subindustry, CarGurus's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CarGurus EV-to-EBIT vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, CarGurus's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where CarGurus's EV-to-EBIT falls into.


CARG
84GF Score
CarGurus Inc CARG
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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CarGurus EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $258.5 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $258.5 Mil mean?
CarGurus (CARG) has a EBIT of $258.5 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on CarGurus.
Is CarGurus' EBIT too high?
CarGurus' current EBIT is $258.5 Mil. Overall, CarGurus has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarGurus' EBIT compare to SAH and MCW?
CarGurus' EBIT of $258.5 Mil can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Vehicles & Parts company?
A good EBIT depends on the Vehicles & Parts industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on CarGurus. CarGurus's current EBIT is $258.5 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CarGurus stock overvalued right now?
Based on GuruFocus' analysis, CarGurus (CARG) is currently considered Modestly Undervalued. The stock's GF Value™ is $40.21, compared to a current price of $31.09 — trading 22.7% below its estimated fair value. The current EBIT is $258.5 Mil. CarGurus' overall GF Score™ is 84/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For CarGurus (CARG), the current EBIT is $258.5 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is CarGurus (CARG) Overvalued in 2026?

Based on GuruFocus' analysis, CarGurus stock appears to be undervalued. The current stock price of $31.09 is trading 22.7% below its estimated GF Value™ of $40.21. GuruFocus considers CarGurus to be Modestly Undervalued.

Key valuation signals for CARG:

  • EBIT: $258.5 Mil
  • GF Value™: $40.21 vs. price of $31.09 (22.7% below fair value)
  • GF Score™: 84/100 with 3 warning signs

No single metric tells the full story. See the CARG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


CarGurus Business Description

Address 1001 Boylston Street, 16th Floor, Boston, MA, USA, 02115
CarGurus Inc is a company that acts as an online automotive marketplace connecting buyers and sellers of new and used cars. It provides three types of marketplace Listing products, Restricted Listings, and Enhanced or Featured Listings, through which it offers real-time and historical data analyzing the connections and pricing analysis. The listing platforms offer auto manufacturers and others to buy advertising on the company's site and target consumers based on the make, model, and zip code of the cars. The company operates through two segments, namely U.S. Marketplace and Digital Wholesale. It generates maximum revenue from the U.S. Marketplace segment. Geographically, the company derives its key revenue from the United States and the rest from international markets.
84GF Score

Get the complete analysis for CARG

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$31.09
Price
$40.21
GF Value