KARO PE Ratio & Valuation,Is KARO Overvalued

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 22.67 is considered Fairly compared with the five-year average of 22.91. The fair price of Karooooo Ltd (KARO) is between 43.78 to 58.61 according to relative valuation methord.

Relative Value

Fair Zone

43.78-58.61

Current Price：46.55

Fair

22.62

10.54

EV/EBITDA

Karooooo Ltd. (KARO) has a current EV/EBITDA of 10.54. The 5-year average EV/EBITDA is 9.76. The thresholds are as follows: Strongly Undervalued below 5.41, Undervalued between 5.41 and 7.58, Fairly Valued between 11.93 and 7.58, Overvalued between 11.93 and 14.10, and Strongly Overvalued above 14.10. The current Forward EV/EBITDA of 10.54 falls within the Historic Trend Line -Fairly Valued range.

15.98

EV/EBIT

Karooooo Ltd. (KARO) has a current EV/EBIT of 15.98. The 5-year average EV/EBIT is 15.61. The thresholds are as follows: Strongly Undervalued below 9.17, Undervalued between 9.17 and 12.39, Fairly Valued between 18.83 and 12.39, Overvalued between 18.83 and 22.05, and Strongly Overvalued above 22.05. The current Forward EV/EBIT of 15.98 falls within the Historic Trend Line -Fairly Valued range.

4.16

Karooooo Ltd. (KARO) has a current PS of 4.16. The 5-year average PS is 4.23. The thresholds are as follows: Strongly Undervalued below 2.30, Undervalued between 2.30 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 4.16 falls within the Historic Trend Line -Fairly Valued range.

11.63

P/OCF

Karooooo Ltd. (KARO) has a current P/OCF of 11.63. The 5-year average P/OCF is 12.82. The thresholds are as follows: Strongly Undervalued below 6.68, Undervalued between 6.68 and 9.75, Fairly Valued between 15.89 and 9.75, Overvalued between 15.89 and 18.97, and Strongly Overvalued above 18.97. The current Forward P/OCF of 11.63 falls within the Historic Trend Line -Fairly Valued range.

29.69

P/FCF

Karooooo Ltd. (KARO) has a current P/FCF of 29.69. The 5-year average P/FCF is 32.94. The thresholds are as follows: Strongly Undervalued below 6.64, Undervalued between 6.64 and 19.79, Fairly Valued between 46.09 and 19.79, Overvalued between 46.09 and 59.24, and Strongly Overvalued above 59.24. The current Forward P/FCF of 29.69 falls within the Historic Trend Line -Fairly Valued range.

Karooooo Ltd (KARO) has a current Price-to-Book (P/B) ratio of 8.15. Compared to its 3-year average P/B ratio of 6.73 , the current P/B ratio is approximately 20.99% higher. Relative to its 5-year average P/B ratio of 6.96, the current P/B ratio is about 17.14% 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 2.39%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.64% , the current FCF yield is about -100.00% lower.

8.13

P/B

Median3y

6.73

Median5y

6.96

0.00

FCF Yield

Median3y

2.39

Median5y

2.64

Competitors Valuation Multiple

The average P/S ratio for KARO's competitors is 32.60, providing a benchmark for relative valuation. Karooooo Ltd Corp (KARO) exhibits a P/S ratio of 4.16, which is -87.25% above the industry average. Given its robust revenue growth of 21.43%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of KARO increased by 3.10% 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.

21.43%

1.11B → 1.34B

Revenue Growth

-5.13%

19.50 → 18.50

Margin Expansion

-13.20%

28.18 → 24.46

P/E Change

3.10%

45.15 → 46.55

Mkt Cap Growth

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Frequently Asked Questions

Is Karooooo Ltd (KARO) currently overvalued or undervalued?

What is Karooooo Ltd (KARO) fair value?

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. The fair price of Karooooo Ltd (KARO) is between 43.78 to 58.61 according to relative valuation methord.

How does KARO's valuation metrics compare to the industry average?

What is the current P/B ratio for Karooooo Ltd (KARO) as of Dec 15 2025?

As of Dec 15 2025, Karooooo Ltd (KARO) has a P/B ratio of 8.15. This indicates that the market values KARO at 8.15 times its book value.

What is the current FCF Yield for Karooooo Ltd (KARO) as of Dec 15 2025?

As of Dec 15 2025, Karooooo Ltd (KARO) has a FCF Yield of 0.00%. This means that for every dollar of Karooooo Ltd’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Karooooo Ltd (KARO) as of Dec 15 2025?

As of Dec 15 2025, Karooooo Ltd (KARO) has a Forward P/E ratio of 22.67. This means the market is willing to pay $22.67 for every dollar of Karooooo Ltd’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Karooooo Ltd (KARO) as of Dec 15 2025?

As of Dec 15 2025, Karooooo Ltd (KARO) has a Forward P/S ratio of 4.16. This means the market is valuing KARO at $4.16 for every dollar of expected revenue over the next 12 months.

KARO Valuation