Is Karooooo Ltd. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Karooooo Ltd. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 34, an EV to EBITDA of 16.34, and a Price to Book Value of 10.45. In comparison, its peer HealthStream, Inc. has a higher P/E ratio of 40.95, while the peer Planet Labs PBC shows a negative P/E ratio of -38.88, indicating varying levels of valuation among competitors.
Karooooo Ltd. has demonstrated strong performance with a year-to-date return of 25.58%, significantly outperforming the S&P 500's return of 13.31% over the same period. This positive return trend suggests that the market may still have confidence in the company's growth potential despite the recent grade change.