Is Karooooo Ltd. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Karooooo Ltd. moved from very attractive to attractive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 34, significantly higher than the peer average of approximately 30.12, while the EV to EBITDA ratio is 16.34, compared to the peer average of 14.77. Additionally, the PEG ratio is 1.00, indicating that the growth expectations may not justify the current price.
In comparison to its peers, HealthStream, Inc. has a P/E ratio of 40.95, while Planet Labs PBC shows a negative P/E, highlighting the varied valuation landscape within the industry. Over the past year, Karooooo Ltd. has returned 5.38%, which lags behind the S&P 500's return of 11.00%, further suggesting that the stock may not be a compelling investment at its current valuation.