Update shared on 10 Nov 2025
Fair value Decreased 4.37%Analysts have reduced their price target for Goodyear Tire & Rubber from $11 to $10 per share. This reflects a modest outlook adjustment due to sector-wide margin pressures and increased competition from low-cost imports.
Analyst Commentary
Recent street research reflects a nuanced outlook on Goodyear Tire & Rubber as analysts weigh both encouraging trends and ongoing challenges affecting the company's valuation and growth prospects.
Bullish Takeaways- Bullish analysts note that Goodyear delivered strong third quarter results, indicating the company is regaining operational traction despite industry headwinds.
- Upward trends in global light vehicle production, along with favorable currency and commodity dynamics, are expected to support demand for tire suppliers including Goodyear.
- The company is undertaking an ambitious plan to expand margins and reduce debt. This is seen as a long-term positive for financial health and shareholder value.
- Resilient execution, even amid increased competition, supports continued positive long-term ratings from major financial institutions.
- Bearish analysts are cautious about persistent margin pressures across the sector, resulting in a downward revision of price targets.
- Rising competition from low-cost imports is impacting overall profitability for tiremakers and adding to downward pressure on future estimates.
- There are concerns regarding Goodyear's ability to fully realize its margin expansion initiatives, with the risk that better cash returns may be found in other sector companies.
- Sector-wide issues, such as aggressive pricing in adjacent markets like rental cars, contribute to a more guarded outlook on growth and valuation for Goodyear.
What's in the News
- Goodyear reported a significant goodwill and intangible asset impairment totaling $674 million for the third quarter of 2025. This is up from $125 million the previous year (Key Developments).
- The company launched the Goodyear Eagle F1 All Season tire, a premium ultra-high-performance product designed for year-round handling, grip, and endurance across multiple driving conditions (Key Developments).
- Three new all-terrain tires were added to Goodyear's consumer lineup. These enhance the brand's offerings for SUVs, trucks, vans, and electric vehicles, with a focus on durability, wet traction, and lower road noise (Key Developments).
- Goodyear formed a new Global Racing organization that unites all its motorsport operations under a single structure, underscoring a renewed commitment to innovation and performance leadership on the track (Key Developments).
- Goodyear and Ice Cube teamed up to celebrate the Goodyear Blimp’s 100th anniversary and the artist’s tour, bringing the iconic airship to major sports and music events across North America (Key Developments).
Valuation Changes
- Fair Value Estimate: Decreased from $10.02 to $9.59 per share, reflecting a slightly moderated outlook.
- Discount Rate: Increased from 12.32% to 12.5%, signaling a minor rise in perceived risk.
- Revenue Growth: Improved marginally, moving from -0.14% to -0.11%, indicating a slightly less negative trend.
- Net Profit Margin: Increased from 2.20% to 2.29%, showing incremental gains in expected profitability.
- Future P/E Ratio: Declined from 10.13x to 9.46x, pointing to a modest reduction in anticipated valuation multiples.
Disclaimer
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