Karat Packaging Inc. (KRT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+39.7%

$74.09

vs $53.04 price

Levered DCF

$70.08

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

7.53

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	14.38×	20.17×	15.25×	12.08×	17.88×	16.14×	168.73×	16,872.73×
P/B	3.03×	3.89×	3.21×	2.01×	3.26×	8.69×	17.91×	25.31×
P/S	0.97×	1.43×	1.22×	0.67×	1.1×	0.95×	1.25×	2.02×
EV / EBITDA	7.47×	10.91×	8.93×	6.72×	10.63×	11.03×	26.11×	66.22×
Gross margin	36.8%	38.9%	37.7%	31.2%	29.6%	30.2%	27.1%	24.8%
Operating margin	8.8%	8.9%	10.4%	7.1%	6.4%	9.4%	2.6%	1.2%
Net margin	6.7%	7.1%	8.0%	5.6%	5.7%	5.9%	0.8%	0.0%
Current ratio	2.3×	3.47×	3.49×	3.15×	3.34×	1.85×	1.7×	0.79×
Debt / equity	0.53×	0.6×	0.46×	0.41×	0.3×	3.04×	4.78×	3.54×
Interest coverage	20.02×	17.79×	20.6×	14.88×	7.96×	5.04×	1.23×	1.47×
Dividend yield	8.0%	5.1%	4.7%	2.4%	0.0%	0.2%	0.0%	0.4%
Payout ratio	114.7%	103.5%	71.5%	29.4%	0.0%	3.5%	0.0%	5928.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	21.1%	19.3%	21.1%	16.7%	16.9%	54.1%	11.0%	0.1%
Return on invested capital	12.9%	11.1%	13.7%	10.9%	10.6%	14.1%	4.1%	-0.2%
Return on assets	10.9%	10.2%	11.7%	9.4%	10.0%	9.7%	1.3%	0.0%
Free cash flow yield	6.5%	7.3%	8.9%	5.2%	-0.9%	-7.8%	-12.4%	-8.2%
Earnings yield	7.0%	5.0%	6.6%	8.3%	5.2%	6.2%	0.6%	0.0%
Enterprise value	$494.7M	$666.6M	$542.6M	$327.5M	$430.3M	$379.8M	$356.3M	$403.4M
Net debt / EBITDA	0.63×	1×	0.79×	0.87×	0.74×	2.85×	5.45×	7.98×
Cash conversion cycle (days)	91	98	102	92	87	72	60	62