GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » CarGurus Inc (NAS:CARG) » Definitions » Intrinsic Value: Projected FCF

CarGurus (CarGurus) Intrinsic Value: Projected FCF : $18.44 (As of Apr. 26, 2024)


View and export this data going back to 2017. Start your Free Trial

What is CarGurus Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-26), CarGurus's Intrinsic Value: Projected FCF is $18.44. The stock price of CarGurus is $23.38. Therefore, CarGurus's Price-to-Intrinsic-Value-Projected-FCF of today is 1.3.

The historical rank and industry rank for CarGurus's Intrinsic Value: Projected FCF or its related term are showing as below:

CARG' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.03   Med: 1.17   Max: 1.31
Current: 1.27

During the past 9 years, the highest Price-to-Intrinsic-Value-Projected-FCF of CarGurus was 1.31. The lowest was 1.03. And the median was 1.17.

CARG's Price-to-Projected-FCF is ranked worse than
55.27% of 892 companies
in the Vehicles & Parts industry
Industry Median: 1.05 vs CARG: 1.27

CarGurus Intrinsic Value: Projected FCF Historical Data

The historical data trend for CarGurus's Intrinsic Value: Projected FCF 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.

* Premium members only.

CarGurus Intrinsic Value: Projected FCF Chart

CarGurus Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only - - - 13.64 18.44

CarGurus Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF 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 13.64 18.17 18.82 19.27 18.44

Competitive Comparison of CarGurus's Intrinsic Value: Projected FCF

For the Auto & Truck Dealerships subindustry, CarGurus's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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's Price-to-Projected-FCF Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where CarGurus's Price-to-Projected-FCF falls into.



CarGurus Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get CarGurus's Free Cash Flow(6 year avg) = $105.83.

CarGurus's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*105.82816+616.852*0.8)/112.050
=18.44

* 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  (NAS:CARG) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

CarGurus's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=23.38/18.441489090277
=1.27

* 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 Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of CarGurus's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


CarGurus (CarGurus) Business Description

Traded in Other Exchanges
Address
2 Canal Park, 4th Floor, Cambridge, MA, USA, 02141
CarGurus Inc is a company that acts as an online automotive marketplace connecting buyers and sellers of new and used cars. The company provides three types of marketplace Listing products, Restricted Listings, and Enhanced or Featured Listing through which it offers real-time and historical data analyzing the connections and pricing analysis. It also provides all dealers with a web widget to place Deal Rating Badges, which show deal rating. 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 geographical segments namely United States and the International. It generates majority of revenue from the United States.
Executives
Manik Gupta director 1999 SCOTT LN, LOS ALTOS CA 94024
Javier Esquivel Zamora officer: General Counsel and Secretary C/O CARGURUS, INC., 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Samuel Zales officer: Chief Operating Officer C/O CARGURUS, INC., 2 CANAL PARK, 4TH FL., CAMBRIDGE MA 02141
Scot Christopher Fredo officer: CFO and Treasurer C/O CARGURUS, INC., 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Thomas Michael Caputo officer: Sr. VP, Product C/O CARGURUS, INC., 2 CANAL PARK, 4TH FL., CAMBRIDGE MA 02141
Andrea Lee Eldridge officer: Chief People Officer C/O CARGURUS, INC., 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Yann Bruno Gellot officer: VP, Finance & Accounting (PAO) C/O CARGURUS, INC., 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Matthew Todd Quinn officer: Chief Technology Officer C/O CARGURUS, INC., 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Langley Steinert director, 10 percent owner, officer: CEO, President and Chairman C/O CARGURUS, INC., 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Dafna Sarnoff officer: Chief Marketing Officer C/O CARGURUS, INC., 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Kathleen Bender Patton officer: Sr. VP, GC and Secretary 2 CANAL PARK, 4TH FLOOR, CAMBRIDGE MA 02141
Sarah Amory Welch officer: Sr. VP, Consumer Marketing C/O CARGURUS, INC., 2 CANAL PARK, 4TH FL., CAMBRIDGE MA 02141
Yvonne Hao director C/O BAIN CAPITAL PARTNERS, LP, 200 CLARENDON STREET, BOSTON MA 02116
Anastasios Parafestas director, 10 percent owner C/O THE BOLLARD GROUP LLC, ONE JOY STREET, BOSTON MA 02108
Greg M Schwartz director C/O ZILLOW GROUP, INC., 1301 SECOND AVENUE, FLOOR 31, SEATTLE WA 98101