Is Karooooo Ltd. overvalued or undervalued?

As of 26 September 2025, the valuation grade for Karooooo Ltd. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 34, an EV to EBITDA of 16.34, and a PEG ratio of 1.00, which suggest that while the company has strong growth potential, it is not significantly undervalued compared to its earnings.
In comparison to peers, Karooooo Ltd. has a P/E ratio of 30.12, which is lower than HealthStream, Inc. at 40.95, but higher than the risky peers like Planet Labs PBC and Couchbase, Inc. The EV to EBITDA ratio of 14.77 also positions it favorably against its peers. Notably, Karooooo has outperformed the S&P 500 over multiple periods, with a year-to-date return of 25.49% compared to the S&P 500's 12.96%, reinforcing its competitive standing in the market.