Is Karooooo Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Karooooo Ltd. has moved from attractive to very attractive. The company appears to be undervalued, supported by a P/E ratio of 34, a Price to Book Value of 10.45, and an EV to EBITDA of 16.34. In comparison, HealthStream, Inc. has a higher P/E ratio of 40.95, while Karooooo's peer Planet Labs PBC shows a negative P/E of -38.88, indicating a stark contrast in valuation metrics.
Despite recent challenges, including a 1-month stock return of -18.77 compared to the S&P 500's 0.96, Karooooo Ltd. has demonstrated strong performance over the longer term, with a 3-year return of 93.52% versus the S&P 500's 81.19%. This suggests that while the stock may be facing short-term pressures, its long-term growth potential remains robust.