Is Rush Enterprises, Inc. overvalued or undervalued?

As of 24 October 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 of 7.71, and an EV to Sales ratio of 0.68, which suggest that while the company is not significantly undervalued, it is also not overvalued compared to its peers.
In comparison to its peers, AutoNation, Inc. has a higher P/E ratio of 18.02 and an EV to EBITDA of 15.94, while Group 1 Automotive, Inc. shows a P/E of 18.26 and an EV to EBITDA of 13.38. This places Rush Enterprises at a lower valuation relative to these competitors. Additionally, over the past year, Rush Enterprises has underperformed against the S&P 500, returning -4.67% compared to the index's 16.90%, reinforcing the notion that the stock may not be a compelling investment at this time.