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DCF valuation

What is CarGurus, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on CarGurus, Inc.'s reported free cash flow gives $74.27 per share. The share price was $34.55 on November 9, 2026, 53% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$288.9M
Average free cash flow, last 5 years
$182M
Cash
$164.9M
balance sheet of September 30, 2026
Debt
$0
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
100,410,297
Revenue growth per year, last 5 years
10.5%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear5.5%4.0%2.0%10.0%$46.74+35%
Base10.5%6.5%2.5%9.0%$74.27+115%
Bull15.5%9.5%3.0%8.0%$129.13+274%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$95.09$101.51$109.36$119.17$131.79
8.0%$79.50$83.67$88.59$94.49$101.71
9.0%$68.13$70.98$74.27$78.10$82.63
10.0%$59.49$61.52$63.81$66.44$69.46
11.0%$52.72$54.20$55.86$57.73$59.84

Where the presets come from

Base: years 1 to 5 grow at CarGurus, Inc.'s revenue growth rate over the last 5 fiscal years (10.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

CarGurus, Inc. company page