CARG (CarGurus) Quality Rank

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

CARG CarGurus Inc CARG
86 GF Score
Price $33.36
GF Value $40.79
Valuation Modestly Undervalued
! 3 Warning Signs
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What is CarGurus Quality Rank?

The Quality Rank measures the business quality of a company relative to other companies. It is ranked based on the strength of the balance sheet, as well as the profitability and growth of the business. The ranked companies are split in equal numbers and then ranked from 1 to 10, with 10 being the highest.

The rank of balance sheet (30%)

The rank of balance sheet is done through the ranking of:
  • Interest coverage
  • Zscore
  • Debt to revenue
  • Equity to asset
  • Cash to debt

The rank of Profitability (70%)

The ranking of Profitability is done by ranking:
  • Operating margin mean rank (10-year mean average profit margine)
  • Operating margin growth rank
  • Fscore
  • Predictability rank
  • Revenue growth rank (5 year), when the growth is higher than 25%, set it as 25%
  • Num of year profit (number of years that is profitable within the last 10 years)
  • ROIC median (10-year median of ROIC)

CarGurus Quality Rank Related Terms

CARG
86GF Score
CarGurus Inc CARG
Quality Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is CarGurus (CARG) Overvalued in 2026?

Based on GuruFocus' analysis, CarGurus stock appears to be undervalued. The current stock price of $33.36 is trading 18.2% below its estimated GF Value™ of $40.79. GuruFocus considers CarGurus to be Modestly Undervalued.

Key valuation signals for CARG:

  • Quality Rank:
  • GF Value™: $40.79 vs. price of $33.36 (18.2% below fair value)
  • GF Score™: 86/100 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

Other Exchanges 0C6:Germany
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.
86GF Score

Get the complete analysis for CARG

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

$33.36
Price
$40.79
GF Value