Karooooo Ltd (KARO) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Karooooo Ltd stock $69.48, price $62.98, upside +10.3%, quality 71 out of 100. Rating: fairly valued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $17.16 – $68.71 · fair‑value band $48.64 – $90.32 · the $62.98 price screens below the $69.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 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.
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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 $62.98, while our model-based Fair Value estimate is $69.48, so the stock looks roughly fairly valued today (gap 9.4%).
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Valuation
Bull case: the DCF Models group reads highest at a median of $82.50 per share, and 10 of the 25 models we run sit above the $62.98 price.
Bear case: the Dividend Discount group reads lowest at $18.42, and 15 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $48.64 (bear) to $90.32 (bull), the price of $62.98 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 5.5B ZAR in FY2026 versus 2.7B ZAR in FY2022, a compound +18.8%/yr. Reported net income was 994M ZAR in FY2026, compounding +21.9%/yr from FY2022.
Key figures
Market cap $1.9B Small · P/E ratio 30.4 · P/S ratio 5.52 · EPS (TTM) $2.07 · Dividend yield 2.1% · Net margin 18.1% · Return on equity 35.2% · Return on assets (EBIT) 24.2% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 85 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 8% below its 52-week high and 55% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at 10%, KARO screens cheaper than that median.
Fair Value models
Bear$48.64Fair Value $69.48Bull$90.32
Price $62.98 · Upside +10.3%
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. Based on fiscal year 2026 figures (about 8 months old). Earnings retained since then ($0.5317 per share) are deliberately not added.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.
In the last 6 months, one officer or director sold shares worth $18.4M and none bought.
SaleIsaias Jose CalistoCEO & Executive Chairman, Director12× since Jul 27, 2026: 286,932 shares, avg. $64.26$18.4MAug 26, 2026
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
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
+20.0%
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.
+16.0%
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.
+19.1%
Start year 2021 (pandemic)
Revenue growth 7 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.
+18.3%
’19
’20
’21
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years), in ZAR ⓘ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. 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.
+19.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.2%
Dividend (yield on the price)2.1%
Profit margin 2021 to 2026 ⓘ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.32% → 26%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less 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).
+8.5%
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.
+15.0%
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 +5.1% a year for the price and +11.4% 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 · 628 stocks
Beats the industry median on 10/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score71 · Top 25%
Fair Value upside+10.3% · Above median
Profitability
Return on equity (12 months)35.2% · Top 25%
Return on assets17.0% · Top 25%
Net margin (12 months)17.6% · Top 25%
Operating margin (12 months)25.8% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)22.0% · Top 25%
Dividend yield (12 months)2.1% · Above median
Balance sheet
Debt / equity0.12× · Above median
Valuation Multiplesvs Software - Application median · lower = cheaper
P/E (12 months)30.4× · Pricier than median
P/B9.69× · Priciest 25%
P/S (12 months)5.29× · Priciest 25%
Price / free cash flow (fiscal year)16.3× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
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 Nov 6, 2026, our model estimates a fair value of $69.48 versus a price of $62.98, about +10% upside (fairly valued).
What is the fair value of KARO?
Our model-based fair value for Karooooo Ltd is $69.48 (as of Nov 6, 2026), built from audited fundamentals. The current price: $62.98.
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 $69.48 (as of Nov 6, 2026) from 25 valuation models. Cautious scenario $48.64, optimistic scenario $90.32. 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 $69.48, about +10% upside versus a price of $62.98 (fairly valued). Cautious scenario $48.64, optimistic scenario $90.32. 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 6.1B ZAR (latest available figure, as of Nov 6, 2026).
Does Karooooo Ltd pay a dividend?
Karooooo Ltd currently shows a dividend yield of 2.07% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Karooooo Ltd (KARO) and when is the ex-dividend date?
Karooooo Ltd pays a dividend of $1.31 per share a year, a dividend yield of 2.1%. The last ex-dividend date was Jul 17, 2026. A dividend has been paid every year since at least 2022. The payout ratio is 66.9% of earnings. Free cash flow covers the dividend 2.96 times. Our assessment: Sustainable. Payout and cash coverage both look sustainable.
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 +8.5 % 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 +19.1 % per year. As of Nov 6, 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 0.89, 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 +8.5 % per year for five years, then slowing evenly to 2 % by year ten, 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 +19.1 % a year. The price currently implies free-cash-flow growth of +8.5 % per 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 +11.5 % a year. That is the yardstick for the growth priced into Karooooo Ltd (+8.5 % per 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 6.13 %: 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 $69.48 per share (as of Nov 6, 2026), against a price of $62.98. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Karooooo Ltd stock overvalued or undervalued in 2026?
As of Nov 6, 2026, KARO trades below its calculated fair value: price $62.98, fair value $69.48, a gap of about +10% (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 ($62.98); the fair value is what the company's own numbers justify ($69.48). For Karooooo Ltd the two are $6.50 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 $1.9B (market capitalisation, as of Nov 6, 2026). Per share that is $62.98; our models calculate a fair value of $69.48 per share.
What do the bullish and bearish scenarios say about KARO?
Our models span a range for Karooooo Ltd: cautious scenario $48.64, base $69.48, optimistic $90.32 per share (as of Nov 6, 2026, price $62.98). 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 30.4 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $69.48 is built from several models across several years. Median P/E at fiscal year-end, 5 fiscal years (2022 to 2026), reported earnings, FY2026 ex one-offs: 24.2. Other multiples: P/B 9.7, P/S 5.3, EV/EBITDA 13.4.
How solid is the balance sheet of Karooooo Ltd (KARO)?
Balance-sheet figures for Karooooo Ltd (as of Nov 6, 2026): return on equity 35.2%, debt of 0.12 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 $62.98, about 8% below its 52-week high of $68.71 and 55% above the low of $40.64 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $69.48 is for.
Which stocks are comparable to Karooooo Ltd?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, 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 Nov 6, 2026: price $62.98, calculated fair value $69.48 (+10%), Quality Score 71/100, from 25 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 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $69.48 builds on their evidence-weighted average, 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 13.3% 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 Nov 6, 2026 was $62.98. Our model-based fair value is $69.48, about +10% 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 ($48.64 to $90.32) 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 $1.9B. 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 5.52 (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 $2.07 (price ÷ EPS = P/E 30.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Karooooo Ltd (KARO)?
The dividend yield of Karooooo Ltd is 2.1% (payout 63.1%). 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 Karooooo Ltd (KARO)?
The net margin of Karooooo Ltd is 18.1% (fiscal year 2026). 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 35.2% (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 24.2% (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 25.8% (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 +22.0% versus a year earlier (3y avg +16.0%). 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 Karooooo Ltd (KARO)?
Earnings per share at Karooooo Ltd are growing +17.7% 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, 9.8M ZAR net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 6, 2026