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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-09-09), Karat Packaging's 3-Year Sortino Ratio is 1.31.
Karat Packaging (NAS:KRT) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Karat Packaging 3-Year Sortino Ratio Related Terms
KRT vs OI, MYE, TRS: 3-Year Sortino Ratio Comparison
For the Packaging & Containers subindustry, Karat Packaging's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino Ratio 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.
Karat Packaging 3-Year Sortino Ratio vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Karat Packaging's 3-Year Sortino Ratio falls into.
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Karat Packaging (KRT) has a 3-Year Sortino Ratio of 1.31 as of Sep. 09, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Karat Packaging and its competitors.
Is Karat Packaging's 3-Year Sortino Ratio too high?
Karat Packaging's current 3-Year Sortino Ratio is 1.31. Overall, Karat Packaging has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's 3-Year Sortino Ratio compare to OI and MYE?
Karat Packaging's 3-Year Sortino Ratio of 1.31 can be compared against companies in the Packaging & Containers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Sortino Ratio for a Packaging & Containers company?
A good 3-Year Sortino Ratio depends on the Packaging & Containers industry context. However, 3-Year Sortino Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Karat Packaging and its competitors. Karat Packaging's current 3-Year Sortino Ratio is 1.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karat Packaging stock overvalued right now?
Based on GuruFocus' analysis, Karat Packaging (KRT) is currently considered Significantly Overvalued. The stock's GF Value™ is $31.64, compared to a current price of $46.67 — trading 47.5% above its estimated fair value. The current 3-Year Sortino Ratio is 1.31. Karat Packaging's overall GF Score™ is 76/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For Karat Packaging (KRT), the current 3-Year Sortino Ratio is 1.31 as of Sep. 09, 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 Karat Packaging (KRT) Overvalued in 2026?
Based on GuruFocus' analysis, Karat Packaging stock appears to be overvalued.
The current stock price of $46.67 is trading 47.5% above its estimated GF Value™ of $31.64.
GuruFocus considers Karat Packaging to be Significantly Overvalued.
Key valuation signals for KRT:
3-Year Sortino Ratio: 1.31
GF Value™: $31.64 vs. price of $46.67 (47.5% above fair value)
No single metric tells the full story. See the KRT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karat Packaging Inc is a distributor and manufacturer of disposable foodservice products and related items, including containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, and janitorial supplies, available in plastic, paper, biopolymer-based, and other compostable forms. The Company focuses on environmentally friendly products and provides customized solutions including product development, design, printing, and logistics services. It serves customers through chains and distributors, retail, and e-commerce/online, and operates in the manufacturing and distribution of single-use food and beverage products, as well as specialty food and beverage products and restaurant and warehouse supplies.
76GF Score
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