Rush Enterprises, Inc. logo RUSHB - Rush Enterprises, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 9
HOLD 8
SELL 0
STRONG
SELL
0
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Strong
Trading 43.6% below fair value
Current Price $76.27
Bear Case $98.13 28.7% upside ($98.13 - $76.27) / $76.27 = 28.7% 6% stage 1 growth, 11% discount
Fair Value $135.33 77.4% upside ($135.33 - $76.27) / $76.27 = 77.4% 9% stage 1 growth, 11% discount
Bull Case $171.32 124.6% upside ($171.32 - $76.27) / $76.27 = 124.6% 12% stage 1 growth, 11% discount

Adjust Assumptions

9.4%
11.0%
3.0%

Key Value Driver

FCF growth rate (9% base case)

Terminal Value % of EV 38%
Implied Market Multiple 12.7x
Market is pricing in (growth) 2.8% vs our 9.4% base

Plain-Language Summary

Using a two-stage FCF DCF with 9% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $135.33 per share.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions