Stock fact sheet · data as of
Karooooo Ltd. (KARO): fair value, margin of safety and Wheel Score
Ticker symbol KARO · Technology · Software - Application · Singapore · Growth
Is KARO undervalued?
At 65.07 (close of 5 Nov 2026), KARO trades 79% over the GLS average fair value of 36.30, with 1 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between Payback Time (3.68) and Graham Growth (79.13). 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.
Ranked against every other company we cover, KARO is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 12, growth score 69, out of 100).
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 | 46.54 | -28% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 17.63 | -73% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 79.13 | +22% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 31.49 | -52% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 60.85 | -6% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 41.92 | -36% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 3.68 | -94% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 22.05 | -66% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 23.46 | -64% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1.41 | -102% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 73.00 | +12% | 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 "Piotroski 6 or more" Wheel Trade Filter. 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 9.1/10 puts KARO among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
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 2.30% 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 | 9.1 / 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 22: No options
No options are listed on Karooooo Ltd. in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 22, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.
Volume runs at 46k shares a day on a market cap of $2.0B, with a beta of 0.81; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 79% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | no implied volatility |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 79% above fair value | |
| Premium | Weak | no option data | |
| Moat | Strong | moat 9.1/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Fair | beta 0.81, $2.0B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 19 Jan 2027, 75 days away - outside the window of a 30-45-day put sold today.
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 |
|---|---|---|---|---|---|
| BL BlackLine, Inc. | 34.39 | 32.56 | -6% | 39Weak | $2.0B |
| PONY Pony AI Inc. American Depositary Shares | 4.75 | 0.2176 | -2083% | 24Weak | $2.1B |
| DBD Diebold Nixdorf, Incorporated | 57.98 | 101.22 | +43% | 46Weak | $1.9B |
| SVMB Jingbo Technology, Inc. | 3.50 | - | - | 11No options | $1.9B |
| SOUN SoundHound AI, Inc. | 4.32 | - | - | 20Weak | $1.9B |
| DV DoubleVerify Holdings, Inc. | 13.55 | 14.81 | +8% | 27Weak | $2.1B |
| SDGR Schrödinger, Inc. | 28.52 | - | - | 25Weak | $2.1B |
| ADEA Adeia Inc. | 16.93 | 20.92 | +19% | 71Good | $1.9B |
| AI C3.ai, Inc. | 11.96 | - | - | 24Weak | $1.9B |
| AMPL Amplitude, Inc. | 17.19 | 5.61 | -206% | 28Weak | $2.3B |
| WLTH Wealthfront Corporation | 11.17 | 8.98 | -24% | 30Weak | $1.7B |
| PLUS ePlus inc. | 90.47 | 51.97 | -74% | 40Weak | $2.4B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about KARO
Is KARO undervalued right now?
No: at 65.07 the stock trades 79% above the GLS average fair value of 36.30 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
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; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for KARO?
36.30 per share as of 5 Nov 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 Jan 2027, 75 days from the data date of 5 Nov 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 stays under 70.