Karooooo Stock Market Value
| KARO Stock | USD 41.35 0.84 2.07% |
| Symbol | Karooooo |
Karooooo Price To Book Ratio
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.
Karooooo 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Karooooo's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Karooooo.
| 10/26/2024 |
| 11/25/2024 |
If you would invest 0.00 in Karooooo on October 26, 2024 and sell it all today you would earn a total of 0.00 from holding Karooooo or generate 0.0% return on investment in Karooooo over 30 days. Karooooo is related to or competes with Meridianlink, CoreCard Corp, Enfusion, Alkami Technology, Issuer Direct, EGain, and Research Solutions. Karooooo Ltd. provides mobility software-as-a-service platform for connected vehicles in South Africa, rest of Africa, E... More
Karooooo Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Karooooo's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Karooooo upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.38 | |||
| Information Ratio | 0.0191 | |||
| Maximum Drawdown | 25.82 | |||
| Value At Risk | (5.99) | |||
| Potential Upside | 5.38 |
Karooooo Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Karooooo's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Karooooo's standard deviation. In reality, there are many statistical measures that can use Karooooo historical prices to predict the future Karooooo's volatility.| Risk Adjusted Performance | 0.0482 | |||
| Jensen Alpha | 0.0538 | |||
| Total Risk Alpha | (0.42) | |||
| Sortino Ratio | 0.0172 | |||
| Treynor Ratio | 0.1665 |
Karooooo Backtested Returns
Karooooo appears to be not too volatile, given 3 months investment horizon. Karooooo has Sharpe Ratio of 0.0686, which conveys that the firm had a 0.0686% return per unit of risk over the last 3 months. We have found thirty technical indicators for Karooooo, which you can use to evaluate the volatility of the firm. Please exercise Karooooo's Risk Adjusted Performance of 0.0482, downside deviation of 4.38, and Mean Deviation of 2.79 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Karooooo holds a performance score of 5. The company secures a Beta (Market Risk) of 1.18, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Karooooo will likely underperform. Please check Karooooo's skewness, and the relationship between the value at risk and day median price , to make a quick decision on whether Karooooo's current price movements will revert.
Auto-correlation | 0.43 |
Average predictability
Karooooo has average predictability. Overlapping area represents the amount of predictability between Karooooo time series from 26th of October 2024 to 10th of November 2024 and 10th of November 2024 to 25th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Karooooo price movement. The serial correlation of 0.43 indicates that just about 43.0% of current Karooooo price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.43 | |
| Spearman Rank Test | -0.65 | |
| Residual Average | 0.0 | |
| Price Variance | 1.16 |
Karooooo lagged returns against current returns
Autocorrelation, which is Karooooo stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Karooooo's stock expected returns. We can calculate the autocorrelation of Karooooo returns to help us make a trade decision. For example, suppose you find that Karooooo has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Karooooo regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Karooooo stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Karooooo stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Karooooo stock over time.
Current vs Lagged Prices |
| Timeline |
Karooooo Lagged Returns
When evaluating Karooooo's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Karooooo stock have on its future price. Karooooo autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Karooooo autocorrelation shows the relationship between Karooooo stock current value and its past values and can show if there is a momentum factor associated with investing in Karooooo.
Regressed Prices |
| Timeline |
Pair Trading with Karooooo
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Karooooo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Karooooo will appreciate offsetting losses from the drop in the long position's value.Moving together with Karooooo Stock
Moving against Karooooo Stock
The ability to find closely correlated positions to Karooooo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Karooooo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Karooooo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Karooooo to buy it.
The correlation of Karooooo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Karooooo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Karooooo moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Karooooo can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Karooooo Correlation, Karooooo Volatility and Karooooo Alpha and Beta module to complement your research on Karooooo. To learn how to invest in Karooooo Stock, please use our How to Invest in Karooooo guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Karooooo technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.