Is Rush Enterprises, Inc. overvalued or undervalued?

As of 18 June 2025, the valuation grade for Rush Enterprises, Inc. has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently undervalued, with a P/E ratio of 14, which is lower than the peer average of 13.16, and an EV to EBITDA ratio of 7.71 compared to peers like RH at 12.30 and Academy Sports & Outdoors at 5.32. Additionally, Rush Enterprises boasts a ROE of 13.57% and a ROCE of 12.90%, suggesting solid profitability metrics.
In the context of peer comparisons, while RH is considered risky with a high P/E ratio of 28.41, Academy Sports & Outdoors is viewed as attractive with a lower P/E of 7.69. This positions Rush Enterprises favorably within its industry, reinforcing its undervalued status. Notably, the company's stock has outperformed the S&P 500 over the past year, returning 18.52% compared to the index's 10.26%, further supporting the case for its attractive valuation.