CarGurusCARG -0.93%83 Return-on-Tangible-Equity is 46.99% as of Mar. 2026, which is 131% above its 10-year median of 20.33. GuruFocus rates CARG with a GF Score™ of 83/100 and a GF Value™ of $40.53 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,282 Vehicles & Parts companies, CarGurus ranks better than 94.07% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. CarGurus's annualized net income for the quarter that ended in Mar. 2026 was $128.9 Mil. CarGurus's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $274.3 Mil. Therefore, CarGurus's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 46.99%.
The historical rank and industry rank for CarGurus's Return-on-Tangible-Equity or its related term are showing as below:
CARG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.43 Med: 20.33 Max: 45.48
Current: 45.48
During the past 11 years, CarGurus's highest Return-on-Tangible-Equity was 45.48%. The lowest was 4.43%. And the median was 20.33%.
CARG's Return-on-Tangible-Equity is ranked better than 94.07% of 1282
companies
in the Vehicles & Parts industry
Industry Median: 7.5
vs CARG: 45.48
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
CarGurus Return-on-Tangible-Equity Related Terms
CarGurus Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for CarGurus's Return-on-Tangible-Equity 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.
CARG vs SAH, GPI, DRVN: Return-on-Tangible-Equity Comparison
For the Auto & Truck Dealerships subindustry, CarGurus's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarGurus's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where CarGurus's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 46.99% mean?
CarGurus (CARG) has a Return-on-Tangible-Equity of 46.99% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CarGurus and its competitors. This is 131% above median its historical median of 20.33. Over the past decade, CarGurus' Return-on-Tangible-Equity has ranged from 4.43 to 45.48. According to the industry distribution chart, CarGurus ranks #76 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 5.9%.
Is CarGurus' Return-on-Tangible-Equity too high?
CarGurus' current Return-on-Tangible-Equity of 46.99% is 131% above median its 10-year median of 20.33. Over the past 10 years, this metric has ranged from a low of 4.43 to a high of 45.48. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.50. CarGurus' value of 46.99% is 526.5% above this industry median. Based on the distribution chart, CarGurus ranks #76 out of 1282 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, CarGurus has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarGurus' Return-on-Tangible-Equity compare to SAH and GPI?
According to the Vehicles & Parts industry distribution chart, CarGurus ranks #76 out of 1282 companies for Return-on-Tangible-Equity. This places CarGurus in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.50. CarGurus' value of 46.99% is 526.5% above this benchmark. Historically, CarGurus' own Return-on-Tangible-Equity has ranged from 4.43 to 45.48 over the past decade. While the company's 10-year median is 20.33 vs. the industry median of 7.50, CarGurus has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.50, based on 1,282 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarGurus's current Return-on-Tangible-Equity of 46.99% is 526.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CarGurus and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarGurus's current Return-on-Tangible-Equity is 46.99%, which is 131% above median its own 10-year median of 20.33. 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 $40.53, compared to a current price of $34.20 — trading 15.6% below its estimated fair value. The current Return-on-Tangible-Equity is 46.99%, which is 131% above median its 10-year median of 20.33 and 526.5% above the Vehicles & Parts industry median of 7.50. CarGurus' overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For CarGurus (CARG), the current Return-on-Tangible-Equity is 46.99% 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 $34.20 is trading 15.6% below its estimated GF Value™ of $40.53.
GuruFocus considers CarGurus to be Modestly Undervalued.
Key valuation signals for CARG:
Return-on-Tangible-Equity: 46.99% (131% above median its 10-year median of 20.33)
GF Value™: $40.53 vs. price of $34.20 (15.6% below fair value)
Industry Position: 526.5% above the Vehicles & Parts median (#76 of 1282)
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 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.
83GF Score
Get the complete analysis for CARG
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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