Is Rush Enterprises, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Rush Enterprises, Inc. has moved from fair to attractive, indicating a more favorable assessment of the company's worth. The company appears to be undervalued, with a P/E ratio of 14, which is lower than the peer average of 15.86 for similar companies. Additionally, the EV to EBITDA ratio stands at 7.71, which is also competitive compared to peers like AutoNation, Inc. at 15.94 and Group 1 Automotive, Inc. at 13.38.
Despite the attractive valuation metrics, Rush Enterprises has underperformed compared to the S&P 500 over various periods, with a year-to-date return of -8.10% versus the S&P 500's 11.41%. This trend continues over longer horizons, with a 3-year return of 9.67% compared to the S&P 500's 81.39%. Overall, the combination of strong valuation ratios and the recent grade change suggests that Rush Enterprises, Inc. is currently undervalued in the market.