Karooooo Ltd (KARO) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Karooooo Ltd $69.95, price $64.21, upside +8.9%, quality 71 out of 100. 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 Sep 23, 2026.
How to read this chart
60‑month range $17.57 – $68.71 · fair‑value band $42.10 – $96.34 · the $64.21 price screens below the $69.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Karooooo Ltd. provides software applications for fleet management, mobile asset tracking, workforce management, and video solutions in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. It operates through Cartrack, Carzuka, and Karooooo Logistics segments.
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Karooooo Ltd. provides software applications for fleet management, mobile asset tracking, workforce management, and video solutions in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. It operates through Cartrack, Carzuka, and Karooooo Logistics segments. The company offers Cartrack, a mobility SaaS cloud that provides systems integration, fleet management and administration, field worker management, video-based safety, risk mitigation and compliance, delivery management, and reporting solutions; and Karooooo Logistics, a software application for management of last-mile delivery and general operational logistics. It also provides physical and e-commerce vehicle buying and selling marketplace. The company serves consumers and sole proprietors, small and medium-sized businesses, and large enterprises. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.
Stock analysis
Karooooo Ltd (KARO) currently trades at $64.21, while our model-based Fair Value estimate is $69.95, implying the stock looks roughly 8.2% fairly valued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $696.30 per share, and 26 of the 26 models we run sit above the $64.21 price.
Bear case: the Asset-Based group reads lowest at $69.70, and 0 of the 26 models stay below the price. Evidence for this calculation is medium.
Scenario range: $42.10 (bear) to $96.34 (bull), the price of $64.21 sits inside 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 71/100 (solid quality), in the Technology sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Karooooo Ltd reported revenue of 4.6B ZAR in FY2025 versus 2.3B ZAR in FY2021, a compound +18.8%/yr. Reported net income was 921M ZAR in FY2025, compounding +30.4%/yr from FY2021.
Key figures
Market cap $2.0B · P/E ratio 32.3 · P/S ratio 6.51 · EPS (TTM) $1.99 · Net margin 20.2% · Return on equity 30.8% · Return on assets (EBIT) 24.5% · Operating margin 23.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 54 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 7% below its 52-week high and 54% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −13% fair-value upside, at 9%, KARO screens cheaper than that median.
Fair Value models
Bear $42.10Fair Value $69.95Bull $96.34
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.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.Evidence ⓘEvidence = 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.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+8.6%
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.
+18.5%
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.
+18.7%
Start year 2020 (pandemic)
Revenue growth 6 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.
+18.0%
’19
’20
’21
’22
’23
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’25
What shareholders gained per year (last 5 years), in ZAR (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+17.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.3%
Dividend (yield on the price)0.0%
Profit margin 2020 to 2025 ⓘ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.33% → 29%
2025 sits 55% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
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).
+23.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+15.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in ZAR, South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about +19.2% a year for the price and +12.3% for the forecasts.
Price, fair value, quality and upside side by side.
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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.Software - Application · 710 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score71 · Top 25%
Fair Value upside+9% · Above median
Profitability
Return on equity (TTM)31% · Top 25%
Return on assets16% · Top 25%
Net margin (TTM)18% · Top 25%
Operating margin (TTM)23% · Top 25%
Growth and dividend
Revenue growth19% · Above median
Dividend yield (TTM)42.9% · Top 25%
Balance sheet
Debt / equity0.01× · Below median
Valuation Multiplesvs Software - Application median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Karooooo Ltd Fair Value". https://www.fairvalue-calculator.com/stock/KARO
Frequently asked questions
Is Karooooo Ltd (KARO) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $69.95 versus a price of $64.21, about +9% upside (fairly valued).
What is the fair value of KARO?
Our model-based fair value for Karooooo Ltd is $69.95 (as of Sep 23, 2026), built from audited fundamentals. The current price: $64.21.
What is the quality score of KARO?
Karooooo Ltd has a Quality Score of 71/100. 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 Karooooo Ltd (KARO)?
Our model-based price target is the fair value of $69.95 (as of Sep 23, 2026) from 26 valuation models. Cautious scenario $42.10, optimistic scenario $96.34. It is a calculation from audited fundamentals, not an analyst target.
What is the Karooooo Ltd stock forecast for 2026?
Our models put fair value at $69.95, about +9% upside versus a price of $64.21 (fairly valued). Cautious scenario $42.10, optimistic scenario $96.34. The calculation is refreshed regularly with new filings.
What is the revenue of Karooooo Ltd (KARO)?
Karooooo Ltd reported trailing-twelve-month revenue of about 5.5B ZAR (latest available figure, as of Sep 23, 2026).
What growth is priced into Karooooo Ltd (KARO)?
For today's price to be fair in a discounted-cash-flow model, Karooooo Ltd would have to grow free cash flow by +23.1 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +18.7 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of KARO use?
Our models discount Karooooo Ltd at 10.9 %: a base by market capitalisation (small), damped by beta 0.90, country premium for USA. 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 Karooooo Ltd that is +23.1 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Karooooo Ltd (KARO) delivered so far?
Over the past 5 years revenue at Karooooo Ltd grew +18.7 % a year. The price currently implies +23.1 % 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 Karooooo Ltd (KARO) growing?
The median revenue growth in the sector is +8.2 % a year. That is the yardstick for the growth priced into Karooooo Ltd (+23.1 % 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 Karooooo Ltd (KARO)?
The free-cash-flow yield on the price is 2.86 %: that much free cash flow Karooooo Ltd produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Karooooo Ltd (KARO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Karooooo Ltd it is $69.95 per share (as of Sep 23, 2026), against a price of $64.21. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Karooooo Ltd stock overvalued or undervalued in 2026?
As of Sep 23, 2026, KARO trades below its calculated fair value: price $64.21, fair value $69.95, a gap of about +9% (fairly valued). 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 KARO?
No. The price is what the market pays today ($64.21); the fair value is what the company's own numbers justify ($69.95). For Karooooo Ltd the two are $5.74 per share apart. That gap is exactly why we show both numbers side by side.
How much is Karooooo Ltd worth?
The market values Karooooo Ltd at about $2.0B (market capitalisation, as of Sep 23, 2026). Per share that is $64.21; our models calculate a fair value of $69.95 per share.
What do the bullish and bearish scenarios say about KARO?
Our models span a range for Karooooo Ltd: cautious scenario $42.10, base $69.95, optimistic $96.34 per share (as of Sep 23, 2026, price $64.21). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of KARO?
Karooooo Ltd trades at a price-to-earnings ratio of 32.3 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $69.95 is built from several models across several years. Other multiples: P/B 10.1, P/S 5.9, EV/EBITDA 14.8.
How solid is the balance sheet of Karooooo Ltd (KARO)?
Balance-sheet figures for Karooooo Ltd (as of Sep 23, 2026): return on equity 30.8%, debt of 0.01 per unit of equity. They feed the Quality Score of 71/100, which measures business quality independently of the share price.
How far is KARO from its 52-week high?
Karooooo Ltd trades at $64.21, about 7% below its 52-week high of $68.71 and 54% above the low of $41.60 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $69.95 is for.
Which stocks are comparable to Karooooo Ltd?
From the same area (Technology) we also value SAP SE, Shopify Inc, Uber Technologies, Inc, Salesforce, Inc, 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 Karooooo Ltd stock attractive at the current price?
The data as of Sep 23, 2026: price $64.21, calculated fair value $69.95 (+9%), Quality Score 71/100, from 26 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 KARO calculated?
We run Karooooo Ltd through 26 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 $69.95, 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 14.1 % above its aggregate fair value. Karooooo Ltd currently trades 9 % 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 Karooooo Ltd (KARO)?
The closing price on Sep 23, 2026 was $64.21. Our model-based fair value is $69.95, about +9% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Karooooo Ltd right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($42.10 to $96.34) leaves room in how you read the outcome.
Key figures of Karooooo Ltd
How large is the market capitalisation of Karooooo Ltd (KARO)?
The market capitalisation of Karooooo Ltd is $2.0B. 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 Karooooo Ltd (KARO)?
The price-to-sales ratio of Karooooo Ltd is 6.51 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Karooooo Ltd (KARO)?
Earnings per share at Karooooo Ltd are $1.99 (price ÷ EPS = P/E 32.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Karooooo Ltd (KARO)?
The net margin of Karooooo Ltd is 20.2% (fiscal year 2025). 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 Karooooo Ltd (KARO)?
The return on equity (ROE) of Karooooo Ltd is 30.8% (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 Karooooo Ltd (KARO)?
On an EBIT basis the return on assets of Karooooo Ltd is 24.5% (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 Karooooo Ltd (KARO)?
The operating margin of Karooooo Ltd is 23.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Karooooo Ltd (KARO)?
Revenue at Karooooo Ltd is growing +18.8% versus a year earlier (3y avg +18.5%). 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 Karooooo Ltd (KARO)?
Earnings per share at Karooooo Ltd are growing −11.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Karooooo Ltd (KARO) hold?
Karooooo Ltd holds more cash than debt, 319M ZAR net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Sep 23, 2026