Lithia Motors Inc (LAD) is undervalued and Rush Enterprises Inc (RUSHA) is overvalued.
Against our estimates of intrinsic value, LAD trades at the wider discount: a margin of safety of +67%, against -45% for RUSHA.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.9% (average of 2 methods) values the shares at $940.77; the price of $312.32 is 67% below that value, and 84% of that value comes from beyond year five.
Leak Score 41/100 on 3 of 12 signals
Discounting its cash flows at 8.8% (average of 3 methods) values the shares at $33.28; the price of $48.27 is 45% above that value, and 77% of that value comes from beyond year five.
Leak Score 43/100 on 3 of 12 signals
| Metric | LAD | RUSHA |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $312.32 | $48.27 |
| Intrinsic value | $940.77 | $33.28 |
| Margin of safety | +67% | -45% |
| Leak Score | 41/100 (3/12) | 43/100 (3/12) |
| Market cap | $6.9B | $5.8B |
| Revenue growth, 5 years | 23.4% | 9.4% |
| Operating margin | 3.8% | 5.1% |
| Net margin | 1.9% | 3.7% |
| Return on equity | 10.7% | 11.8% |
| Debt to equity | 2.59 | 0.64 |
| P/E | 10.3x | 21.9x |
| Forward P/E | 7.3x | 15.8x |
| P/B | 1.1x | 2.4x |
| Dividend yield | 0.7% | 1.1% |