Stock fact sheet · data as of
Karooooo Ltd. (KARO): fair value, margin of safety and Wheel Score
Technology · Software - Application · Singapore · Blend
Is KARO undervalued?
At 62.54 (close of 16 Oct 2026), KARO trades 58% below the GLS average fair value of 149.49. That average comes from 9 models run on the latest filings, and 4 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Karooooo Ltd. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between EPV (22.39) and 10 Cap (402.85). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KARO under Blend.
Nine valuation models for KARO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 42.03 | -33% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 294.16 | +370% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 73.99 | +18% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 29.27 | -53% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 57.55 | -8% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 402.85 | +544% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 60.10 | -4% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 363.06 | +481% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 22.39 | -64% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -23.05 | -137% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 73.00 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Karooooo Ltd. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 7.8/10 puts KARO among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are high - ROIC 22.3%, ROE 30.0%, ROA 17.0% - with debt at 0.35 times equity and a free-cash-flow yield of 0.2%.
The dividend yield is 2.40% at a payout ratio of 0%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.
Institutional ownership scores 2/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 22.3% |
|---|---|---|---|
| GLS Moat | 7.8 / 10 | ROE | 30.0% |
| Debt / equity | 0.35 | ROA | 17.0% |
| Free-cash-flow yield | 0.2% | Payout ratio | 0% |
| Institutions | 2 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 39: No options
No options are listed on Karooooo Ltd. in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 39) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.
Volume runs at 66k shares a day on a market cap of $1.9B, with a beta of 0.89; the Stability part of the Wheel Score gives that 9 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 58% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 12 / 15 | moat 7.8/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 9 / 20 | 66k shares/day, $1.9B cap, beta 0.89 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Karooooo Ltd. reports earnings on 19 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Karooooo Ltd. by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BTDR Bitdeer Technologies Group | 8.40 | - | - | 39Weak | $1.9B |
| AI C3.ai, Inc. | 12.16 | - | - | 45Weak | $1.9B |
| SDGR Schrödinger, Inc. | 25.05 | - | - | 45Weak | $1.9B |
| SOUN SoundHound AI, Inc. | 4.53 | - | - | 45Weak | $2.0B |
| PONY Pony AI Inc. American Depositary Shares | 5.17 | - | - | 45Weak | $1.8B |
| VERX Vertex, Inc. | 12.74 | 3.21 | -296% | 50Fair | $2.1B |
| PDFS PDF Solutions, Inc. | 42.41 | 6.12 | -593% | 46Weak | $1.8B |
| AMPL Amplitude, Inc. | 15.83 | 5.02 | -215% | 43Weak | $2.1B |
| BL BlackLine, Inc. | 30.51 | 32.45 | +6% | 72Good | $1.8B |
| DV DoubleVerify Holdings, Inc. | 13.54 | 13.67 | +1% | 80Prime | $2.1B |
| SECZ Securitize Corp. | 10.55 | - | - | 34Weak | $1.7B |
| BVC BitVentures Limited | 13.15 | 0.0016 | -816477% | 12No options | $2.2B |
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Start free See the Sunday ScanQuestions about KARO
Is KARO undervalued right now?
By the GLS models, yes: at 62.54 the stock is 58% below the average fair value of 149.49 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of KARO and what does it mean?
KARO has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for KARO?
149.49 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Karooooo Ltd. report earnings next?
The next earnings report is due on 19 Oct 2026 (after the close), 3 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KARO have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on KARO, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.