Should CarGurus’ (CARG) New PriceVantage Tool Reshape Investor Views on Its Data Advantage?

• Earlier in December 2025, CarGurus launched PriceVantage, a used-vehicle pricing tool that uses real-time shopper intent data to give dealerships customized price recommendations, workflow integrations, and VIN-level insights aimed at faster sales and higher profitability.
• Early adopters of PriceVantage reported vehicle turn times multiple times faster than top competitors on CarGurus and a very large uplift in daily shopper connections when following the tool’s pricing recommendations, underscoring how deeply data-driven tools are being woven into dealer operations.
• We’ll now explore how the launch of PriceVantage, built on billions of monthly demand signals, may influence CarGurus’ existing investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

CarGurus Investment Narrative Recap

To own CarGurus, you need to believe its marketplace can stay central to how dealers price and sell cars as competition intensifies. PriceVantage reinforces the near term catalyst around deeper dealer adoption of data and AI tools, but it does not remove key risks like rival platforms or the long term shift toward end-to-end digital transactions that CarGurus no longer fully participates in after winding down CarOffer.

The recent rollout of PriceVantage ties directly into CarGurus’ broader push into dealer analytics, alongside its Dealer Data Insights reports that were already in use at nearly 20,000 dealers by late Q3 2025. Both efforts speak to the same thesis: if CarGurus can embed itself inside dealer workflows with measurable ROI, that could support Marketplace revenue, justify its premium earnings multiple, and partially offset the pressure from OEM, dealer and large retailer platforms.

Yet, even with promising tools like PriceVantage, investors should be aware that rising competition from OEM and large retailer platforms could...

Read the full narrative on CarGurus (it's free!)

CarGurus' narrative projects $1.1 billion revenue and $316.9 million earnings by 2028. This requires 5.7% yearly revenue growth and about a $187 million earnings increase from $129.8 million today.

Uncover how CarGurus' forecasts yield a $40.29 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Six Simply Wall St Community fair value estimates for CarGurus span about US$40 to over US$150 per share, showing how far apart individual views can be. Against that backdrop, the bullish catalyst of expanding data driven dealer tools such as PriceVantage sits alongside material competitive risks, so it can be useful to weigh several of these perspectives before forming your own view.

Explore 6 other fair value estimates on CarGurus - why the stock might be worth over 3x more than the current price!

Build Your Own CarGurus Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CarGurus research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free CarGurus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CarGurus' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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