The Goodyear Tire & Rubber Company

DB:GTR Stock Report

Market Cap: €2.6b

Goodyear Tire & Rubber Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 GTR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GTR (€9.27) is trading below our estimate of fair value (€12.91)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for GTR. This is calculated by dividing GTR's market cap by their current revenue.
What is GTR's PS Ratio?
PS Ratio0.1x
SalesUS$19.05b
Market CapUS$2.77b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for GTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.5x
SHA0 Schaeffler
0.3x16.7%€4.3b
HLE HELLA GmbH KGaA
1.2x4.3%€9.4b
CON Continental
0.3x3.5%€12.5b
SFQ SAF-Holland
0.3x4.9%€630.1m
GTR Goodyear Tire & Rubber
0.1x0.4%€2.8b

Price-To-Sales vs Peers: GTR is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.5x).


Price to Sales Ratio vs Industry

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

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
GTR 0.1xIndustry Avg. 0.3xNo. of Companies15PS00.40.81.21.62+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GTR is good value based on its Price-To-Sales Ratio (0.1x) compared to the European Auto Components industry average (0.3x).


Price to Sales Ratio vs Fair Ratio

What is GTR'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.

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

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


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 GTR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€9.27
€12.90
+39.1%
29.2%€18.25€8.83n/a6
Nov ’25€7.37
€11.99
+62.6%
30.3%€17.45€8.17n/a6
Oct ’25€7.85
€11.83
+50.6%
28.8%€17.00€7.96n/a6
Sep ’25€7.76
€12.40
+59.8%
23.0%€17.28€8.09n/a8
Aug ’25€9.12
€13.79
+51.3%
14.8%€17.44€11.01n/a8
Jul ’25€10.46
€14.10
+34.8%
15.6%€17.69€11.17n/a7
Jun ’25€10.95
€14.21
+29.9%
16.3%€17.61€11.12n/a6
May ’25€11.21
€14.38
+28.3%
15.2%€17.58€11.10n/a7
Apr ’25€12.56
€14.38
+14.4%
15.2%€17.58€11.10n/a7
Mar ’25€10.89
€14.38
+32.0%
15.2%€17.58€11.10n/a7
Feb ’25€12.78
€15.21
+19.0%
14.8%€19.32€11.96n/a7
Jan ’25€12.91
€15.14
+17.2%
15.9%€19.38€12.00n/a7
Dec ’24€12.76
€15.06
+18.0%
17.2%€19.36€11.98n/a6
Nov ’24€10.90
€13.70
+25.7%
10.3%€16.06€12.28€7.376
Oct ’24€11.38
€13.14
+15.5%
11.9%€15.58€11.00€7.856
Sep ’24€11.78
€13.14
+11.5%
11.9%€15.58€11.00€7.766
Aug ’24€14.44
€13.78
-4.6%
15.8%€17.07€11.68€9.126
Jul ’24€12.52
€14.11
+12.7%
15.4%€17.67€12.09€10.466
Jun ’24€12.69
€14.11
+11.2%
15.4%€17.67€12.09€10.956
May ’24€9.75
€12.09
+24.1%
20.8%€15.48€8.19€11.217
Apr ’24€9.68
€12.44
+28.5%
23.4%€15.92€8.43€12.567
Mar ’24€10.59
€12.44
+17.4%
23.4%€15.92€8.43€10.897
Feb ’24€10.45
€12.51
+19.7%
20.4%€15.67€8.30€12.787
Jan ’24€9.40
€14.39
+53.0%
17.1%€17.29€10.17€12.917
Dec ’23€10.54
€14.39
+36.5%
17.1%€17.29€10.17€12.767
Nov ’23€11.81
€17.10
+44.8%
20.1%€22.35€12.19€10.907

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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