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CarGurus (CarGurus) Peter Lynch Fair Value : $22.75 (As of Apr. 29, 2024)


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What is CarGurus Peter Lynch Fair Value?

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, CarGurus's PEG is 1. CarGurus's 5-Year TTM EBITDA Growth Rate is 25. CarGurus's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $0.91. Therefore, the Peter Lynch Fair Value for today is $22.75.

As of today (2024-04-29), CarGurus's share price is $23.22. CarGurus's Peter Lynch fair value is $22.75. Therefore, CarGurus's Price to Peter Lynch Fair Value Ratio for today is 1.02.


The historical rank and industry rank for CarGurus's Peter Lynch Fair Value or its related term are showing as below:

CARG' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.02   Med: 1.15   Max: 1.23
Current: 1.02


During the past 9 years, the highest Price to Peter Lynch Fair Value Ratio of CarGurus was 1.23. The lowest was 1.02. And the median was 1.15.


CARG's Price-to-Peter-Lynch-Fair-Value is ranked worse than
56.06% of 421 companies
in the Vehicles & Parts industry
Industry Median: 0.89 vs CARG: 1.02

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


CarGurus Peter Lynch Fair Value Historical Data

The historical data trend for CarGurus's Peter Lynch Fair Value 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 Peter Lynch Fair Value Chart

CarGurus Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only - - 27.25 - 22.75

CarGurus Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Peter Lynch Fair Value 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 - 9.00 14.25 19.25 22.75

Competitive Comparison of CarGurus's Peter Lynch Fair Value

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

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

* The bar in red indicates where CarGurus's Price-to-Peter-Lynch-Fair-Value falls into.



CarGurus Peter Lynch Fair Value Calculation

CarGurus's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 25 *0.91
=22.75

CarGurus's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.91.


* 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.

** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


CarGurus  (NAS:CARG) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 25 instead of 15 in this case.

CarGurus's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=23.22/22.75
=1.02

* 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 Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of CarGurus's Peter Lynch Fair Value 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