The Goodyear Tire & Rubber Company

WBAG:GYT Stock Report

Market Cap: €2.9b

Goodyear Tire & Rubber Valuation

Is GYT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GYT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GYT (€10.08) is trading below our estimate of fair value (€12.69)

Significantly Below Fair Value: GYT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GYT?

Key metric: As GYT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for GYT. This is calculated by dividing GYT's market cap by their current revenue.
What is GYT's PS Ratio?
PS Ratio0.2x
SalesUS$19.05b
Market CapUS$3.02b

Price to Sales Ratio vs Peers

How does GYT's PS Ratio compare to its peers?

The above table shows the PS ratio for GYT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
5110 Sumitomo Rubber Industries
0.4x2.7%JP¥443.9b
5105 Toyo Tire
0.6x2.4%JP¥362.3b
MASA Multistrada Arah Sarana
7.8xn/aRp56.9t
A161390 Hankook Tire & Technology
0.5x3.2%₩4.8t
GYT Goodyear Tire & Rubber
0.2x0.4%€3.0b

Price-To-Sales vs Peers: GYT is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does GYT's PS Ratio compare vs other companies in the European Auto Components Industry?

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
GYT 0.2xIndustry Avg. 0.3xNo. of Companies15PS00.40.81.21.62+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GYT is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Auto Components industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is GYT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GYT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.1x

Price-To-Sales vs Fair Ratio: GYT is expensive based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GYT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€10.08
€12.90
+28.0%
29.2%€18.25€8.83n/a6
Nov ’25€7.53
€11.99
+59.2%
30.3%€17.45€8.17n/a6
Oct ’25€7.67
€11.83
+54.1%
28.8%€17.00€7.96n/a6
Sep ’25€7.86
€12.40
+57.7%
23.0%€17.28€8.09n/a8
Aug ’25€9.24
€13.79
+49.3%
14.8%€17.44€11.01n/a8
Jul ’25€10.46
€14.10
+34.8%
15.6%€17.69€11.17n/a7
Jun ’25€11.29
€14.21
+25.9%
16.3%€17.61€11.12n/a6
May ’25€11.24
€14.38
+27.9%
15.2%€17.58€11.10n/a7
Apr ’25€12.78
€14.38
+12.5%
15.2%€17.58€11.10n/a7
Mar ’25€10.85
€14.38
+32.5%
15.2%€17.58€11.10n/a7
Feb ’25€12.80
€15.21
+18.8%
14.8%€19.32€11.96n/a7
Jan ’25€13.12
€15.14
+15.4%
15.9%€19.38€12.00n/a7
Dec ’24€12.90
€15.06
+16.7%
17.2%€19.36€11.98n/a6
Nov ’24€11.01
€13.70
+24.4%
10.3%€16.06€12.28€7.536
Oct ’24€11.78
€13.14
+11.5%
11.9%€15.58€11.00€7.676
Sep ’24€12.33
€13.14
+6.6%
11.9%€15.58€11.00€7.866
Aug ’24€14.62
€13.78
-5.7%
15.8%€17.07€11.68€9.246
Jul ’24€12.46
€14.11
+13.2%
15.4%€17.67€12.09€10.466
Jun ’24€12.59
€14.11
+12.1%
15.4%€17.67€12.09€11.296
May ’24€9.78
€12.09
+23.6%
20.8%€15.48€8.19€11.247
Apr ’24€10.08
€12.44
+23.5%
23.4%€15.92€8.43€12.787
Mar ’24€10.60
€12.44
+17.4%
23.4%€15.92€8.43€10.857
Feb ’24€10.45
€12.51
+19.7%
20.4%€15.67€8.30€12.807
Jan ’24€9.48
€14.39
+51.8%
17.1%€17.29€10.17€13.127
Dec ’23€10.72
€14.39
+34.3%
17.1%€17.29€10.17€12.907
Nov ’23€11.16
€17.10
+53.2%
20.1%€22.35€12.19€11.017

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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