The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, CarGurus's share price is $23.34.
CarGurus's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $8.01. Hence, CarGurus's PS Ratio for today is 2.92.
Warning Sign:
CarGurus Inc stock PS Ratio (=2.93) is close to 2-year high of 3.2
The historical rank and industry rank for CarGurus's PS Ratio or its related term are showing as below:
CARG'
s PS Ratio Range Over the Past 10 Years
Min: 0.92 Med: 5.16 Max: 15.97
Current: 2.84
During the past 9 years, CarGurus's highest PS Ratio was 15.97. The lowest was 0.92. And the median was 5.16.
CARG's PS Ratio is ranked worse than 82.58% of 1280
companies
in the Vehicles & Parts industry
Industry Median: 0.84
vs CARG: 2.84
CarGurus's Revenue per Sharefor the
three
months ended in Dec. 2023 was $1.99.
Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $8.01.
Warning Sign:
CarGurus Inc revenue per share is in decline over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of CarGurus was -38.00% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 18.20% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 21.10% per year.
During the past 9 years, CarGurus's highest 3-Year average Revenue per Share Growth Rate was 63.10% per year. The lowest was -2.50% per year. And the median was 31.05% per year.
Back to Basics: PS Ratio
CarGurus PS Ratio Historical Data
The historical data trend for CarGurus's PS Ratio 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.
For the Auto & Truck Dealerships subindustry, CarGurus's PS Ratio, along with its competitors' market caps and PS Ratio 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 PS Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarGurus's PS Ratio distribution charts can be found below:
* The bar in red indicates where CarGurus's PS Ratio falls into.
CarGurus PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
CarGurus's Share Price of today is $23.34.
CarGurus's Revenue per Share 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 $8.01.
* 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.
It can also be calculated from the numbers for the whole company:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
CarGurus PS Ratio Related Terms
Thank you for viewing the detailed overview of CarGurus's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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