Karooooo Ltd.

Is Karooooo Ltd. overvalued or undervalued?

As of November 21, 2025, Karooooo Ltd. is considered overvalued with a P/E ratio of 34 and a valuation grade of attractive, despite strong performance metrics like a ROCE of 47.99% and a ROE of 31.15%, while underperforming the S&P 500 with a year-to-date return of -4.19%.

As of 21 November 2025, the valuation grade for Karooooo Ltd. has moved from very attractive to attractive, indicating a shift in perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 34, a Price to Book Value of 10.45, and an EV to EBITDA of 16.34. In comparison, peers such as HealthStream, Inc. have a P/E of 40.95, while Karooooo's other peers are significantly lower, indicating a disparity in valuation within the industry.<BR><BR>Despite the overvaluation, Karooooo Ltd. has shown strong performance with a ROCE of 47.99% and a ROE of 31.15%. However, the stock has underperformed relative to the S&P 500 year-to-date, with a return of -4.19% compared to the index's 12.26%. This performance, combined with the valuation ratios, suggests that while the company has strong fundamentals, its current market price may not reflect an attractive investment opportunity.

Is Karooooo Ltd. technically bullish or bearish?

As of October 10, 2025, the technical trend for Karooooo Ltd. is mildly bullish, supported by positive momentum from MACD and KST indicators, despite recent underperformance compared to the S&P 500.

As of 10 October 2025, the technical trend has changed from bullish to mildly bullish. The weekly MACD and KST indicators are bullish, while the monthly MACD is also bullish, indicating positive momentum. The moving averages are mildly bullish on a daily basis, and the Dow Theory supports a mildly bullish stance on both weekly and monthly time frames. The Bollinger Bands show a sideways trend weekly but are mildly bullish monthly. The RSI shows no signal for both weekly and monthly periods.<BR><BR>In terms of performance, Karooooo Ltd. has outperformed the S&P 500 year-to-date with a return of 16.3% compared to the S&P's 11.41%, and over the past year with a return of 20.16% versus 13.36%. However, it has underperformed in the last week and month. Overall, the current technical stance is mildly bullish, driven by the positive momentum from MACD and KST indicators.

How big is Karooooo Ltd.?

As of Jun 18, Karooooo Ltd. has a market capitalization of 1,445.50 million, with net sales of 250.02 million and a net profit of 51.29 million over the latest four quarters.

Market Cap: As of Jun 18, Karooooo Ltd. has a market capitalization of 1,445.50 million, categorizing it as a Micro Cap company.<BR><BR>Recent Quarterly Performance: For the latest four quarters, Karooooo Ltd. reported net sales of 250.02 million and a net profit of 51.29 million.<BR><BR>Balance Sheet Snapshot: As of Feb'25, the company reported shareholder's funds of 172.43 million and total assets of 273.48 million.

What does Karooooo Ltd. do?

Karooooo Ltd. is a micro-cap software company with recent net sales of $66 million and a net profit of $14 million. Key metrics include a P/E ratio of 34.00 and a return on equity of 31.15%.

Overview:<BR>Karooooo Ltd. operates in the software products industry and is classified as a micro-cap company.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: 66 Million (Quarterly Results - Feb 2025) <BR>Most recent Net Profit: 14 Million (Quarterly Results - Feb 2025) <BR>Market-cap: USD 1,445.50 Million (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: 34.00 <BR>Dividend Yield: 0.00% <BR>Debt Equity: -0.14 <BR>Return on Equity: 31.15% <BR>Price to Book: 8.38 <BR><BR>Contact Details:<BR>Details: No Company Details Available <BR>Registrar Address: Not available.

Should I buy, sell or hold Karooooo Ltd.?