Kap Industrial Holdings Ltd (KAP) fair value: what the stock is really worth
As of Oct 19, 2026: fair value (intrinsic value) of Kap Industrial Holdings Ltd stock ZAR 5.80, price ZAR 2.87, upside +102.1%, quality 51 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 1, 2026.
How to read this chart
60‑month range R1.47 – R5.05 · fair‑value band R3.74 – R8.29 · the R2.87 price screens below the R5.80 fair value. 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Oct 1, 2026.
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KAP Limited engages in industrial, chemical, and logistics businesses in South Africa, rest of Africa, the Americas, Europe, the Middle East, and Australasia. It operates through six segments: PG Bison, Safripol, Unitrans, Feltex, Sleep Group, and Optix.
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It manufactures and sells polyethylene terephthalate, high-density polyethylene, and polypropylene products. In addition, the company offers foam, sprung, fabric, and industrial foams and mattresses, as well as provides technology-enabled driver behaviour management solutions.
The company also operates timber plantations, a sawmill, a pole plant, and production facilities for wood-based decorative panel products. It serves automotive components, consumer, agriculture, petrochemical, mining, and passenger transport sectors.
KAP Limited was formerly known as KAP Industrial Holdings Limited and changed its name to KAP Limited in April 2023. KAP Limited is headquartered in Stellenbosch, South Africa.
Stock analysis
Kap Industrial Holdings Ltd (KAP) currently trades at R2.87, while our model-based Fair Value estimate is R5.80, implying the stock looks roughly 50.5% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of R6.35 per share, and 3 of the 5 models we run sit above the R2.87 price.
Bear case: the Asset-Based group reads lowest at R3.12, and 2 of the 5 models stay below the price. Data coverage for this calculation is low.
Scenario range: R3.74 (bear) to R8.29 (bull), the price of R2.87 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 51/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Kap Industrial Holdings Ltd reported revenue of 29.6B ZAR in FY2026 versus 28.0B ZAR in FY2022, a compound +1.4%/yr. Reported net income was −119M ZAR in FY2026.
Key figures
Market cap 7.2B ZAR Small · P/E ratio 55.0 · P/S ratio 0.24 · EPS (TTM) R−0.0500 · Dividend yield 1.2% · Net margin −0.4% · Return on equity −0.1% · Return on assets (EBIT) 7.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 21 out of 100 (low confidence).
What moves the price
The share trades about 7% below its 52-week high and 91% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −14% fair-value upside, at 102%, KAP screens cheaper than that median.
Fair Value models
BearR3.74Fair Value R5.80BullR8.29
Price R2.87 · Upside +102.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.39/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+0.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.3%
Start year 2021 (pandemic). Over 10 years: +6.2% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.9%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
8.9% (2021) → 7.5% (2026)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+11.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about +7.7% a year for the price.
Compare Kap Industrial Holdings Ltd with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Conglomerates · 354 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score51 · Above median
Fair Value upside+102.1% · Top 25%
Profitability
Return on assets−0.4% · Below median
Net margin (12 months)−0.4% · Below median
Operating margin (12 months)7.2% · Above median
Growth and dividend
Revenue growth (quarter YoY)3.3% · Below median
Dividend yield (12 months)1.2% · Below median
Balance sheet
Debt / equity0.49× · Above median
Valuation Multiplesvs Conglomerates median · lower = cheaper
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Is Kap Industrial Holdings Ltd (KAP) overvalued or undervalued?
As of Oct 1, 2026, our model estimates a fair value of R5.80 versus a price of R2.87, about +102% upside (undervalued).
What is the fair value of KAP?
Our model-based fair value for Kap Industrial Holdings Ltd is R5.80 (as of Oct 1, 2026), built from audited fundamentals. The current price: R2.87.
What is the quality score of KAP?
Kap Industrial Holdings Ltd has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Kap Industrial Holdings Ltd (KAP)?
Our model-based price target is the fair value of R5.80 (as of Oct 1, 2026) from 5 valuation models. Cautious scenario R3.74, optimistic scenario R8.29. It is a calculation from audited fundamentals, not an analyst target.
What is the Kap Industrial Holdings Ltd stock forecast for 2026?
Our models put fair value at R5.80, about +102% upside versus a price of R2.87 (undervalued). Cautious scenario R3.74, optimistic scenario R8.29. The calculation is refreshed regularly with new filings.
What is the revenue of Kap Industrial Holdings Ltd (KAP)?
Kap Industrial Holdings Ltd reported trailing-twelve-month revenue of about 29.6B ZAR (latest available figure, as of Oct 1, 2026).
Does Kap Industrial Holdings Ltd pay a dividend?
Kap Industrial Holdings Ltd currently shows a dividend yield of 1.24% relative to its recent price (as of Oct 1, 2026).
What growth is priced into Kap Industrial Holdings Ltd (KAP)?
For today's price to be fair in a discounted-cash-flow model, Kap Industrial Holdings Ltd would have to grow free cash flow by +11.2 % per year for five years (discount rate 13.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.3 % per year. As of Oct 1, 2026.
What discount rate (WACC) does the fair value of KAP use?
Our models discount Kap Industrial Holdings Ltd at 13.4 %: a base by market capitalisation (small), damped by beta 0.59, country premium for South Africa. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Kap Industrial Holdings Ltd that is +11.2 % per year a year over ten years, using the same discount rate (13.4 %) and the same formula as our fair value.
How much growth has Kap Industrial Holdings Ltd (KAP) delivered so far?
Over the past 5 years revenue at Kap Industrial Holdings Ltd grew +4.3 % a year. The price currently implies +11.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Kap Industrial Holdings Ltd (KAP) growing?
The median revenue growth in the sector is +7.4 % a year. That is the yardstick for the growth priced into Kap Industrial Holdings Ltd (+11.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Kap Industrial Holdings Ltd (KAP)?
The free-cash-flow yield on the price is 13.56 %: that much free cash flow Kap Industrial Holdings Ltd produces per unit of market value. When it exceeds the discount rate of our models (13.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Kap Industrial Holdings Ltd (KAP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Kap Industrial Holdings Ltd it is R5.80 per share (as of Oct 1, 2026), against a price of R2.87. It is the blended result of 5 valuation models (cash flow, earnings, asset, dividend).
Is Kap Industrial Holdings Ltd stock overvalued or undervalued in 2026?
As of Oct 1, 2026, KAP trades below its calculated fair value: price R2.87, fair value R5.80, a gap of about +102% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of KAP?
No. The price is what the market pays today (R2.87); the fair value is what the company's own numbers justify (R5.80). For Kap Industrial Holdings Ltd the two are R2.93 per share apart. That gap is exactly why we show both numbers side by side.
How much is Kap Industrial Holdings Ltd worth?
The market values Kap Industrial Holdings Ltd at about 7.2B ZAR (market capitalisation, as of Oct 1, 2026). Per share that is R2.87; our models calculate a fair value of R5.80 per share.
What do the bullish and bearish scenarios say about KAP?
Our models span a range for Kap Industrial Holdings Ltd: cautious scenario R3.74, base R5.80, optimistic R8.29 per share (as of Oct 1, 2026, price R2.87). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of KAP?
Kap Industrial Holdings Ltd trades at a price-to-earnings ratio of 55.0 (as of Oct 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R5.80 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 6.4 (the reported result was a loss). Other multiples: PEG 0.0, P/B 0.6, P/S 0.2, EV/EBITDA 3.2.
What is the PEG ratio of KAP?
The PEG ratio of Kap Industrial Holdings Ltd is 0.01 (P/E divided by earnings growth, as of Oct 1, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Kap Industrial Holdings Ltd (KAP)?
Balance-sheet figures for Kap Industrial Holdings Ltd (as of Oct 1, 2026): return on equity −0.1%, debt of 0.49 per unit of equity. They feed the Quality Score of 51/100, which measures business quality independently of the share price.
How far is KAP from its 52-week high?
Kap Industrial Holdings Ltd trades at R2.87, about 7% below its 52-week high of R3.08 and 91% above the low of R1.50 (as of Oct 19, 2026). Distance from the high says nothing about value: that is what the fair value of R5.80 is for.
Which stocks are comparable to Kap Industrial Holdings Ltd?
From the same area (Industrials) we also value 3M Company, Honeywell International Inc, Swire Pacific Limited, CK Hutchison Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Kap Industrial Holdings Ltd stock attractive at the current price?
The data as of Oct 1, 2026: price R2.87, calculated fair value R5.80 (+102%), Quality Score 51/100, from 5 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of KAP calculated?
We run Kap Industrial Holdings Ltd through 5 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R5.80, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.9 % above its aggregate fair value. Kap Industrial Holdings Ltd currently trades 51 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Kap Industrial Holdings Ltd (KAP)?
The closing price on Oct 19, 2026 was R2.87. Our model-based fair value is R5.80, about +102% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Kap Industrial Holdings Ltd right now?
The price is below even our cautious bear case (R3.74). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (R3.74 to R8.29) leaves room in how you read the outcome.
Where does the earnings growth of Kap Industrial Holdings Ltd (KAP) come from?
Earnings per share at Kap Industrial Holdings Ltd grew −8.2 % a year from 2015 to 2026. Broken into its drivers: revenue per share +6.3 %, EBIT margin −5.8 %, tax rate +0.6 %, residual (interest, one-offs) −8.9 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Kap Industrial Holdings Ltd
How large is the market capitalisation of Kap Industrial Holdings Ltd (KAP)?
The market capitalisation of Kap Industrial Holdings Ltd is 7.2B ZAR. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Kap Industrial Holdings Ltd (KAP)?
The price-to-sales ratio of Kap Industrial Holdings Ltd is 0.24 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Kap Industrial Holdings Ltd (KAP)?
Earnings per share at Kap Industrial Holdings Ltd are R−0.0500 (price ÷ EPS = P/E 55.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Kap Industrial Holdings Ltd (KAP)?
The dividend yield of Kap Industrial Holdings Ltd is 1.2%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Kap Industrial Holdings Ltd (KAP)?
The net margin of Kap Industrial Holdings Ltd is −0.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Kap Industrial Holdings Ltd (KAP)?
The return on equity (ROE) of Kap Industrial Holdings Ltd is −0.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Kap Industrial Holdings Ltd (KAP)?
On an EBIT basis the return on assets of Kap Industrial Holdings Ltd is 7.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Kap Industrial Holdings Ltd (KAP)?
The operating margin of Kap Industrial Holdings Ltd is 7.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Kap Industrial Holdings Ltd (KAP)?
Revenue at Kap Industrial Holdings Ltd is growing +3.3% versus a year earlier (3y avg 0.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Kap Industrial Holdings Ltd (KAP)?
Earnings per share at Kap Industrial Holdings Ltd are growing +30.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Kap Industrial Holdings Ltd (KAP) carry?
The net debt of Kap Industrial Holdings Ltd is 7.0B ZAR (fiscal year 2026, ≈ 7.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Oct 1, 2026