Karat Packaging Valuation

KRT Stock  USD 25.61  0.41  1.58%   
At this time, the firm appears to be fairly valued. Karat Packaging secures a last-minute Real Value of $26.48 per share. The latest price of the firm is $25.61. Our model forecasts the value of Karat Packaging from analyzing the firm fundamentals such as Return On Equity of 0.19, current valuation of 514.27 M, and Profit Margin of 0.07 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Karat Packaging's valuation include:
Price Book
3.3751
Enterprise Value
514.3 M
Enterprise Value Ebitda
10.644
Price Sales
1.1344
Trailing PE
17.0733
Fairly Valued
Today
25.61
Please note that Karat Packaging's price fluctuation is very steady at this time. Calculation of the real value of Karat Packaging is based on 3 months time horizon. Increasing Karat Packaging's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Karat Packaging's intrinsic value may or may not be the same as its current market price of 25.61, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  25.61 Real  26.48 Target  28.5 Hype  25.61 Naive  25.47
The intrinsic value of Karat Packaging's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Karat Packaging's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
26.48
Real Value
28.09
Upside
Estimating the potential upside or downside of Karat Packaging helps investors to forecast how Karat stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Karat Packaging more accurately as focusing exclusively on Karat Packaging's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.420.420.42
Details
Hype
Prediction
LowEstimatedHigh
24.0025.6127.22
Details
Potential
Annual Dividend
LowForecastedHigh
1.141.231.33
Details
3 Analysts
Consensus
LowTarget PriceHigh
25.9428.5031.64
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Karat Packaging's intrinsic value based on its ongoing forecasts of Karat Packaging's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Karat Packaging's closest peers.

Karat Packaging Cash

38.14 Million

Karat Revenue by Product

Karat Packaging Total Value Analysis

Karat Packaging is now projected to have company total value of 514.27 M with market capitalization of 514.75 M, debt of 92.87 M, and cash on hands of 3.5 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Karat Packaging fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
514.27 M
514.75 M
92.87 M
3.5 M

Karat Packaging Investor Information

About 58.0% of the company outstanding shares are owned by corporate insiders. The book value of Karat Packaging was now reported as 7.69. The company last dividend was issued on the 21st of November 2025. Karat Packaging may be sliding down financialy. It has an above-average likelihood of going through some form of financial trouble next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.05020.0804
Way Down
Slightly volatile
Operating Income24 M43.4 M
Way Down
Slightly volatile

Karat Packaging Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Karat Packaging has an asset utilization ratio of 143.5 percent. This implies that the Company is making $1.43 for each dollar of assets. An increasing asset utilization means that Karat Packaging is more efficient with each dollar of assets it utilizes for everyday operations.
 
Covid
 
Interest Hikes

Karat Packaging Profitability Analysis

Considering the key profitability indicators obtained from Karat Packaging's historical financial statements, Karat Packaging may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in March. Profitability indicators assess Karat Packaging's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2017-12-31
Previous Quarter
10.9 M
Current Value
7.3 M
Quarterly Volatility
3.8 M
 
Covid
 
Interest Hikes
Gross Profit is likely to drop to about 108.9 M in 2026. Pretax Profit Margin is likely to drop to 0.05 in 2026
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.250.35
Way Down
Slightly volatile
Net Profit Margin0.03630.0638
Way Down
Slightly volatile
Operating Profit Margin0.05020.0804
Way Down
Slightly volatile
Pretax Profit Margin0.04840.0867
Way Down
Slightly volatile
Return On Assets0.05940.0916
Way Down
Slightly volatile
Return On Equity0.250.22
Moderately Up
Slightly volatile
For Karat Packaging profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Karat Packaging to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Karat Packaging utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Karat Packaging's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Karat Packaging over time as well as its relative position and ranking within its peers.

Karat Packaging Earnings per Share Projection vs Actual

By analyzing Karat Packaging's earnings estimates, investors can diagnose different trends across Karat Packaging's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Karat Packaging is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
Karat Packaging is projected to generate 0.4175 in earnings per share on the 31st of December 2026. Karat Packaging earnings estimates show analyst consensus about projected Karat Packaging EPS (Earning Per Share). It derives the highest and the lowest estimates based on Karat Packaging's historical volatility. Many public companies, such as Karat Packaging, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Karat Packaging Ownership Allocation

Karat Packaging maintains a total of 20.1 Million outstanding shares. Karat Packaging holds significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Karat Packaging Profitability Analysis

The company reported the last year's revenue of 422.63 M. Total Income to common stockholders was 30.82 M with profit before taxes, overhead, and interest of 172.61 M.

Karat Packaging Past Distributions to stockholders

About Karat Packaging Valuation

The stock valuation mechanism determines Karat Packaging's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Karat Packaging based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Karat Packaging. We calculate exposure to Karat Packaging's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Karat Packaging's related companies.
Last ReportedProjected for Next Year
Gross Profit189 M108.9 M
Pretax Profit Margin 0.09  0.05 
Operating Profit Margin 0.08  0.05 
Net Profit Margin 0.06  0.04 
Gross Profit Margin 0.35  0.25 

Karat Packaging Quarterly Retained Earnings

63.91 Million

Karat Packaging's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Karat Packaging's value is low or high relative to the company's performance and growth projections. Determining the market value of Karat Packaging can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Karat Packaging represents a small ownership stake in the entity. As a stockholder of Karat, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Karat Packaging Dividends Analysis For Valuation

At this time, Karat Packaging's Dividends Paid is comparatively stable compared to the past year. Dividend Yield is likely to gain to 0.05 in 2026, whereas Dividend Payout Ratio is likely to drop 1.13 in 2026. . Retained Earnings is likely to gain to about 80.1 M in 2026, whereas Retained Earnings Total Equity is likely to drop slightly above 44.9 M in 2026.
Last ReportedProjected for Next Year
Dividends Paid35.7 M37.5 M
Dividend Yield 0.05  0.05 
Dividend Payout Ratio 1.19  1.13 
Dividend Paid And Capex Coverage Ratio 1.23  1.29 
There are various types of dividends Karat Packaging can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Karat shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Karat Packaging directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Karat pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Karat Packaging by the value of the dividends paid out.

Karat Packaging Growth Indicators

Investing in growth stocks can be very risky. If the company such as Karat Packaging does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding20.1 M
Quarterly Earnings Growth Y O Y-0.2

Karat Packaging Current Valuation Indicators

Karat Packaging's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Karat Packaging's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Karat Packaging, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Karat Packaging's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Karat Packaging's worth.

Additional Tools for Karat Stock Analysis

When running Karat Packaging's price analysis, check to measure Karat Packaging's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Karat Packaging is operating at the current time. Most of Karat Packaging's value examination focuses on studying past and present price action to predict the probability of Karat Packaging's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Karat Packaging's price. Additionally, you may evaluate how the addition of Karat Packaging to your portfolios can decrease your overall portfolio volatility.