3 models fit Karat Packaging Inc. Common Stock and they disagree: 1 of 3 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Bronze56
Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionKarat Packaging Inc. Common Stock (KRT)
Fair value (3 models)
$36.73
ACCE price target
$50.00
Rating
Overvalued
Horizon
12 months
Fair value published on 24 Oct 2026, 17:04 CEST; previously $56.61 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 13 Oct 2026, 00:00 CEST.
Rating published on 24 Oct 2026, 17:04 CEST.
Price used: $53.00 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
44.3% above
-30.7% to fair value
ACCE score
73
out of 100
Analysts
67% buy
3 covering
P/E
21.2x
forward 22.7x
1-year return
+110.2%
Dividend yield
3.49%
Karat Packaging Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Karat Packaging distributes disposable foodservice products, including takeout containers, cups, cutlery and gloves, sourced largely from Asian manufacturers and sold to restaurants and cleaning-supply channels in the US and Canada. The core advantage is a broad, stocked catalogue that lets small and mid-sized operators buy a full set of consumables from one supplier, which supports the ROE of 30.6%. Revenue growth of 9.9% is the figure to watch, since it reflects the company's ability to keep adding customers and categories in a market still dominated by fragmented local distributors. At a P/E of 21.5 on a 35.5% gross margin, the market is paying for that compounding rather than for a turnaround, so the case rests on whether operating margin, currently 8.7%, can widen as volumes scale. A forward P/E of 0.0 means no usable forward estimate is in the data, so the valuation case needs to be built from the historical margin trajectory before going further.