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CarGurusCARG -2.91%84 3-Year RORE % is 66.42 as of Mar. 2026. GuruFocus rates CARG with a GF Score™ of 84/100 and a GF Value™ of $40.66 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,250 Vehicles & Parts companies, CarGurus ranks better than 86.96% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
CarGurus's 3-Year RORE % for the quarter that ended in Mar. 2026 was 66.42%.
The industry rank for CarGurus's 3-Year RORE % or its related term are showing as below:
CARG's 3-Year RORE % is ranked better than 86.96% of 1250
companies
in the Vehicles & Parts industry
Industry Median: 4.325
vs CARG: 66.42
CarGurus (NAS:CARG) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
CarGurus 3-Year RORE % Related Terms
CarGurus 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for CarGurus's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, CarGurus's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where CarGurus's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
CarGurus (CARG) has a 3-Year RORE % of 66.42 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on CarGurus and its competitors. According to the industry distribution chart, CarGurus ranks #163 out of 1250 companies in the Vehicles & Parts industry, placing it in the top 13%.
Is CarGurus' 3-Year RORE % too high?
CarGurus' current 3-Year RORE % is 66.42. The Vehicles & Parts industry median 3-Year RORE % is 4.33. CarGurus' value of 66.42 is 1435.7% above this industry median. Based on the distribution chart, CarGurus ranks #163 out of 1250 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 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CarGurus' 3-Year RORE % compare to SAH and GPI?
According to the Vehicles & Parts industry distribution chart, CarGurus ranks #163 out of 1250 companies for 3-Year RORE %. This places CarGurus in the top 13% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 4.33. CarGurus' value of 66.42 is 1435.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Vehicles & Parts company?
The median 3-Year RORE % among Vehicles & Parts companies is 4.33, based on 1,250 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CarGurus's current 3-Year RORE % of 66.42 is 1435.7% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on CarGurus and its competitors. For the Vehicles & Parts industry, the median 3-Year RORE % is 4.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CarGurus's current 3-Year RORE % is 66.42. 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 $40.66, compared to a current price of $34.98 — trading 14% below its estimated fair value. The current 3-Year RORE % is 66.42 and 1435.7% above the Vehicles & Parts industry median of 4.33. CarGurus' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For CarGurus (CARG), the current 3-Year RORE % is 66.42 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 $34.98 is trading 14% below its estimated GF Value™ of $40.66.
GuruFocus considers CarGurus to be Modestly Undervalued.
Key valuation signals for CARG:
3-Year RORE %: 66.42
GF Value™: $40.66 vs. price of $34.98 (14% below fair value)
Industry Position: 1435.7% above the Vehicles & Parts median (#163 of 1250)
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.
84GF Score
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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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