How does KRT's valuation (P/E, EV/EBITDA) compare to comparable companies after this earnings release?

Valuation snapshot post‑Q2 – After the Q2 release, KRT is still posting a loss on a GAAP basis, which means its trailing P/E is negative and therefore not directly comparable to earnings‑positive peers. Using the forward‑look‑ahead model that analysts have been applying (FY‑2025E earnings), KRT’s implied forward P/E sits in the 13‑15 × range. By contrast, Disney (DIS) trades around 11‑12 ×, Netflix (NFLX) near 30 ×, and Roku (ROKU) around 25 × on a forward‑earnings basis. On an EV/EBITDA basis, KRT’s FY‑2025 EBITDA is projected at roughly 6‑8 ×, versus Disney’s 8‑9 ×, Netflix’s 12‑13 ×, and Roku’s 10‑12 ×. In other words, KRT is trading at a modest discount to its larger, more mature peers and at a noticeable premium discount versus high‑growth streaming peers, reflecting its smaller scale, higher growth trajectory (23 % YoY revenue growth for the fifth straight quarter), and a still‑early profitability timeline.

Trading implication: The relative valuation gap gives KRT a “value‑plus‑growth” edge—its forward P/E and EV/EBITDA multiples are modestly cheaper than the broader entertainment/streaming set while the revenue momentum remains robust. Technically the stock has broken above its 50‑day MA and is holding near the recent high‑low range, but RSI is edging above 70, hinting at short‑term overbought pressure. A disciplined entry on a pull‑back to the 20‑day MA (or the $4.80–$5.00 support zone) could capture upside if the company continues to improve operating leverage (G&A expense down double‑digits) and hits its 2025 profitability target. Conversely, if the earnings‑adjusted multiple begins to converge toward peer levels (e.g., a rise in forward P/E above 15×), it may signal that the discount has been priced in and a profit‑taking rally could ensue. Consider a modest long position with a tight stop‑loss just below the 20‑day MA, while monitoring upcoming guidance and any shifts in the EV/EBITDA spread versus peers for confirmation.