Is Rush Enterprises, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Rush Enterprises, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 14, an EV to EBITDA ratio of 7.71, and a Price to Book Value of 1.85, which suggest that the stock is reasonably priced compared to its earnings and book value.
In comparison to peers, AutoNation, Inc. has a higher P/E ratio of 18.02, while Group 1 Automotive, Inc. also shows a strong valuation with a P/E of 18.26. This positions Rush Enterprises in a competitive light, although its valuation is less aggressive than some of its peers. Over the past year, Rush Enterprises has returned 11.08%, which is notably lower than the S&P 500's return of 17.14%, suggesting that while the company has performed well, it has underperformed relative to the broader market.