KARO Relative Valuation
KARO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KARO is overvalued; if below, it's undervalued.
Historical Valuation
Karooooo Ltd (KARO) is now in the Fair zone, suggesting that its current forward PE ratio of 22.39 is considered Fairly compared with the five-year average of 22.91. The fair price of Karooooo Ltd (KARO) is between 43.24 to 58.04 according to relative valuation methord.
Relative Value
Fair Zone
43.24-58.04
Current Price：45.78
Fair
21.69
PE
1Y
3Y
5Y
Trailing
Forward
10.47
EV/EBITDA
Karooooo Ltd. (KARO) has a current EV/EBITDA of 10.47. The 5-year average EV/EBITDA is 9.75. The thresholds are as follows: Strongly Undervalued below 5.39, Undervalued between 5.39 and 7.57, Fairly Valued between 11.93 and 7.57, Overvalued between 11.93 and 14.11, and Strongly Overvalued above 14.11. The current Forward EV/EBITDA of 10.47 falls within the Historic Trend Line -Fairly Valued range.
15.87
EV/EBIT
Karooooo Ltd. (KARO) has a current EV/EBIT of 15.87. The 5-year average EV/EBIT is 15.61. The thresholds are as follows: Strongly Undervalued below 9.15, Undervalued between 9.15 and 12.38, Fairly Valued between 18.84 and 12.38, Overvalued between 18.84 and 22.07, and Strongly Overvalued above 22.07. The current Forward EV/EBIT of 15.87 falls within the Historic Trend Line -Fairly Valued range.
4.13
PS
Karooooo Ltd. (KARO) has a current PS of 4.13. The 5-year average PS is 4.23. The thresholds are as follows: Strongly Undervalued below 2.29, Undervalued between 2.29 and 3.26, Fairly Valued between 5.19 and 3.26, Overvalued between 5.19 and 6.16, and Strongly Overvalued above 6.16. The current Forward PS of 4.13 falls within the Historic Trend Line -Fairly Valued range.
11.55
P/OCF
Karooooo Ltd. (KARO) has a current P/OCF of 11.55. The 5-year average P/OCF is 12.83. The thresholds are as follows: Strongly Undervalued below 6.67, Undervalued between 6.67 and 9.75, Fairly Valued between 15.91 and 9.75, Overvalued between 15.91 and 18.99, and Strongly Overvalued above 18.99. The current Forward P/OCF of 11.55 falls within the Historic Trend Line -Fairly Valued range.
29.49
P/FCF
Karooooo Ltd. (KARO) has a current P/FCF of 29.49. The 5-year average P/FCF is 32.95. The thresholds are as follows: Strongly Undervalued below 6.58, Undervalued between 6.58 and 19.77, Fairly Valued between 46.14 and 19.77, Overvalued between 46.14 and 59.33, and Strongly Overvalued above 59.33. The current Forward P/FCF of 29.49 falls within the Historic Trend Line -Fairly Valued range.
Karooooo Ltd (KARO) has a current Price-to-Book (P/B) ratio of 8.05. Compared to its 3-year average P/B ratio of 6.71 , the current P/B ratio is approximately 20.04% higher. Relative to its 5-year average P/B ratio of 6.95, the current P/B ratio is about 15.82% higher. Karooooo Ltd (KARO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.42%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.66% , the current FCF yield is about -100.00% lower.
7.80
P/B
Median3y
6.71
Median5y
6.95
0.00
FCF Yield
Median3y
2.42
Median5y
2.66
Competitors Valuation Multiple
The average P/S ratio for KARO's competitors is , providing a benchmark for relative valuation. Karooooo Ltd Corp (KARO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 21.43%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of KARO decreased by 1.48% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.11B to 1.34B.
The secondary factor is the Margin Expansion, contributed -5.13%to the performance.
Overall, the performance of KARO in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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