Karat Packaging Inc
NASDAQ: KRT · CONSUMER CYCLICAL · PACKAGING & CONTAINERS
Updated 2026-04-29
Karat Packaging Inc (KRT) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for KRT.
Valued
Valuation reasonably reflects current fundamentals. Limited margin of safety at these levels.
KRT historical valuation range
Where current P/E sits in KRT's own 5Y range.
KRT intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
KRT valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 18.53x
P/S Ratio — History
Current: 1.23x
Is KRT overvalued in 2026?
Karat Packaging Inc (KRT) currently trades at $28.44 per share with a market capitalization of $577,151,000.00. Based on our multi-factor framework, the stock trades at a fair valuation with a Smart Value Score of 52/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 18.5x, above its 5-year median of 18.1x.
Looking at its own history, KRT is currently trading more expensive than 58% of the last 5Y on P/E. This places it in the 58th percentile of its historical range, a reasonable but unremarkable position.
Our discounted cash flow model estimates KRT's intrinsic value at $28.81 per share, against the current market price of $28.44. This implies a margin of safety of +9.27%. The stock is priced close to its estimated fair value, offering limited upside without further operational improvement.
Financial quality is a concern. The Piotroski F-Score of 3/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.
Bottom line: KRT trades at a fair valuation on our framework, with a Smart Value Score of 52/100. The valuation is defensible but offers no obvious bargain. Patience or a better entry price may reward disciplined buyers.
Frequently asked questions
Is KRT overvalued in 2026?
Based on a Smart Value Score of 52/100, KRT is fairly valued. Price reasonably reflects current fundamentals with limited cushion in either direction.
What is KRT's fair value?
Our DCF model estimates KRT's intrinsic value at $28.81 per share, versus the current price of $28.44. This produces a margin of safety of +9.27%.
What P/E ratio does KRT trade at?
KRT trades at a P/E of 18.5x on trailing twelve-month earnings, compared to its 5-year median of 18.1x.
Is KRT a buy based on valuation?
WallStSmart does not issue buy or sell recommendations. Our Smart Value Score of 52/100 reflects the combined read on growth, quality, and price. The profile is balanced. Best suited for investors with an existing thesis.
How does KRT's valuation compare to its history?
On P/E, KRT currently sits in the 58th percentile of its own 5Y range. That is above its long-run median relative to where it has traded over the period.
What is KRT's Smart Value Score?
KRT's Smart Value Score is 52/100. The Smart Value Score is a proprietary WallStSmart metric blending growth quality, financial health, and valuation attractiveness into a single 0-100 read. Scores above 75 are rare and indicate strong multi-factor alignment.