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KaroooooJSE:KRO +0.47%94 Debt-to-EBITDA is 0.64 as of May. 2026, which is 146% above its 10-year median of 0.26. GuruFocus rates JSE:KRO with a GF Score™ of 94/100 and a GF Value™ of R978.41 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,725 Software companies, Karooooo ranks better than 58.61% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Karooooo's Debt-to-EBITDA or its related term are showing as below:
JSE:KRO'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.12 Med: 0.26 Max: 0.9
Current: 0.73
During the past 8 years, the highest Debt-to-EBITDA Ratio of Karooooo was 0.90. The lowest was 0.12. And the median was 0.26.
JSE:KRO's Debt-to-EBITDA is ranked better than 58.61% of 1725
companies
in the Software industry
Industry Median: 1.09
vs JSE:KRO: 0.73
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Karooooo Debt-to-EBITDA Related Terms
Karooooo Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Karooooo's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
JSE:KRO vs VERX, EVCM, NCNO: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Karooooo's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Karooooo Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Karooooo's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Karooooo's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (May. 2026) EBITDA data.
Karooooo (JSE:KRO) has a Debt-to-EBITDA of 0.64 as of May. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Karooooo. This is 146% above median its historical median of 0.26. Over the past decade, Karooooo's Debt-to-EBITDA has ranged from 0.12 to 0.90. According to the industry distribution chart, Karooooo ranks #714 out of 1725 companies in the Software industry, placing it in the top 41.4%.
Is Karooooo's Debt-to-EBITDA too high?
Karooooo's current Debt-to-EBITDA of 0.64 is 146% above median its 10-year median of 0.26. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 0.90. The Software industry median Debt-to-EBITDA is 1.09. Karooooo's value of 0.64 is 41.3% below this industry median. Based on the distribution chart, Karooooo ranks #714 out of 1725 companies in the Software industry, which is above the industry midpoint. Overall, Karooooo has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Karooooo's Debt-to-EBITDA compare to VERX and EVCM?
According to the Software industry distribution chart, Karooooo ranks #714 out of 1725 companies for Debt-to-EBITDA. This puts Karooooo in the upper half of its industry. The industry median Debt-to-EBITDA is 1.09. Karooooo's value of 0.64 is 41.3% below this benchmark. Historically, Karooooo's own Debt-to-EBITDA has ranged from 0.12 to 0.90 over the past decade. While the company's 10-year median is 0.26 vs. the industry median of 1.09, Karooooo has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,725 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karooooo's current Debt-to-EBITDA of 0.64 is 41.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Karooooo. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karooooo's current Debt-to-EBITDA is 0.64, which is 146% above median its own 10-year median of 0.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karooooo stock overvalued right now?
Based on GuruFocus' analysis, Karooooo (JSE:KRO) is currently considered Fairly Valued. The stock's GF Value™ is R978.41, compared to a current price of R1,075.00 — trading 9.9% above its estimated fair value. The current Debt-to-EBITDA is 0.64, which is 146% above median its 10-year median of 0.26 and 41.3% below the Software industry median of 1.09. Karooooo's overall GF Score™ is 94/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Karooooo (JSE:KRO), the current Debt-to-EBITDA is 0.64 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Karooooo (JSE:KRO) Overvalued in 2026?
Based on GuruFocus' analysis, Karooooo stock appears to be overvalued.
The current stock price of R1,075.00 is trading 9.9% above its estimated GF Value™ of R978.41.
GuruFocus considers Karooooo to be Fairly Valued.
Key valuation signals for JSE:KRO:
Debt-to-EBITDA: 0.64 (146% above median its 10-year median of 0.26)
GF Value™: R978.41 vs. price of R1,075.00 (9.9% above fair value)
Industry Position: 41.3% below the Software median (#714 of 1725)
No single metric tells the full story. See the JSE:KRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karooooo Ltd is a provider of an operational intelligence platform. Through its cloud platform, the company enables fleet and asset management, fuel management, workforce management, logistics, safety, including AI-assisted video safety, compliance, risk, and environmental impact management. Its segments are: Cartrack, which generates the majority of revenue, provides an operational intelligence platform that maximizes the value of transportation, operations, and workflow data through insightful real-time data analytics to connected vehicles and equipment, and Karooooo Logistics provides a software application enabling the management of last-mile B2B delivery and general operational logistics (Delivery-as-a-Service or DaaS). It generates the majority of its revenue from South Africa.
94GF Score
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