Karooooo Valuation
| KARO Stock | USD 44.36 3.25 7.91% |
At this time, the firm appears to be overvalued. Karooooo secures a last-minute Real Value of $32.45 per share. The latest price of the firm is $44.36. Our model forecasts the value of Karooooo from analyzing the firm fundamentals such as Current Valuation of 1.26 B, return on equity of 0.32, and Profit Margin of 0.19 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Karooooo's valuation include:
Price Book 8.6105 | Enterprise Value 1.3 B | Enterprise Value Ebitda 19.0173 | Price Sales 0.2915 | Forward PE 7.7399 |
Overvalued
Today
Please note that Karooooo's price fluctuation is not too volatile at this time. Calculation of the real value of Karooooo is based on 3 months time horizon. Increasing Karooooo's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Karooooo is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Karooooo Stock. However, Karooooo's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 44.36 | Real 32.45 | Target 29.63 | Hype 43.07 | Naive 43.52 |
The intrinsic value of Karooooo's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Karooooo's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Karooooo helps investors to forecast how Karooooo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Karooooo more accurately as focusing exclusively on Karooooo's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Karooooo's intrinsic value based on its ongoing forecasts of Karooooo's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Karooooo's closest peers.
Karooooo Cash |
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Karooooo Valuation Trend
Knowing Karooooo's actual value is paramount for traders when making sound investment determinations. Using both Karooooo's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Karooooo Total Value Analysis
Karooooo is now projected to have valuation of 1.26 B with market capitalization of 1.27 B, debt of 266.81 M, and cash on hands of 1000 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Karooooo fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.26 B | 1.27 B | 266.81 M | 1000 M |
Karooooo Investor Information
The company last dividend was issued on the 8th of August 2024. Based on the analysis of Karooooo's profitability, liquidity, and operating efficiency, Karooooo is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.24 | 0.2479 |
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| Total Cash From Operating Activities | 975 M | 955 M |
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| Operating Income | 652.6 M | 1 B |
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Karooooo Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Karooooo has an asset utilization ratio of 97.64 percent. This suggests that the Company is making $0.98 for each dollar of assets. An increasing asset utilization means that Karooooo is more efficient with each dollar of assets it utilizes for everyday operations.Karooooo Ownership Allocation
Karooooo maintains a total of 30.89 Million outstanding shares. Karooooo secures 7.0 % of its outstanding shares held by insiders and 12.28 % owned by institutional investors. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.Karooooo Profitability Analysis
The company reported the previous year's revenue of 4.21 B. Net Income was 1.07 B with profit before overhead, payroll, taxes, and interest of 2.27 B.Karooooo Past Distributions to stockholders
About Karooooo Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Karooooo. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Karooooo based exclusively on its fundamental and basic technical indicators. By analyzing Karooooo's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Karooooo's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Karooooo. We calculate exposure to Karooooo's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Karooooo's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.7 B | 2 B | |
| Pretax Profit Margin | 0.25 | 0.31 | |
| Operating Profit Margin | 0.25 | 0.24 | |
| Net Profit Margin | 0.18 | 0.20 | |
| Gross Profit Margin | 0.64 | 0.75 |
Karooooo Quarterly Retained Earnings |
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A single share of Karooooo represents a small ownership stake in the entity. As a stockholder of Karooooo, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Karooooo Dividends Analysis For Valuation
Please note that Karooooo has scaled down on payment of dividends at this time. At this time, Karooooo's Price Earnings Ratio is very stable compared to the past year. As of the 28th of November 2024, Price Earnings To Growth Ratio is likely to grow to 0.89, while Retained Earnings are likely to drop about 1.3 B.
There are various types of dividends Karooooo can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Karooooo shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Karooooo directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Karooooo pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Karooooo by the value of the dividends paid out.
Karooooo Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 30.9 M | |
| Quarterly Earnings Growth Y O Y | 0.22 | |
| Forward Price Earnings | 7.7399 |
Karooooo Current Valuation Indicators
Karooooo's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Karooooo's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Karooooo, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Karooooo's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Karooooo's worth.When determining whether Karooooo offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Karooooo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Karooooo Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Karooooo Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Karooooo. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Karooooo Stock, please use our How to Invest in Karooooo guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Karooooo. If investors know Karooooo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Karooooo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.22 | Dividend Share 19.257 | Earnings Share 1.5 | Revenue Per Share 140.909 | Quarterly Revenue Growth 0.064 |
The market value of Karooooo is measured differently than its book value, which is the value of Karooooo that is recorded on the company's balance sheet. Investors also form their own opinion of Karooooo's value that differs from its market value or its book value, called intrinsic value, which is Karooooo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Karooooo's market value can be influenced by many factors that don't directly affect Karooooo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Karooooo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Karooooo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Karooooo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.