A Look at Goodyear (GT) Valuation Following Expanded Veolia Fleet Partnership

Goodyear Tire & Rubber (GT) is taking its Tires-as-a-Service model to a new level by expanding the solution across Veolia’s entire fleet in France. After a successful pilot, this move signals meaningful momentum for Goodyear’s commercial strategy and focus on fleet efficiency.

See our latest analysis for Goodyear Tire & Rubber.

Goodyear’s expanded partnership with Veolia comes after other commercial moves, including new tire compounds for motorsport and retail promotions on key models. After a challenging year, with the 1-year total shareholder return down 19%, recent momentum is building. This is highlighted by a rapid 25% share price gain in the past month and renewed optimism surrounding Goodyear’s shift towards value-added fleet solutions.

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But with shares still trading well below analyst targets and Goodyear’s fundamentals showing mixed signals, is there real upside left for investors here? Or is the market already reflecting Goodyear’s future growth potential?

Most Popular Narrative: 8.5% Undervalued

Despite trading at $8.66 at last close, the most widely followed narrative points to a fair value closer to $9.46. This signals that recent momentum may not have been fully recognized by the market and invites closer scrutiny of the assumptions behind this valuation.

Goodyear is positioned to benefit from the ongoing global increase in the vehicle parc and higher vehicle miles traveled. Both of these factors imply durable replacement tire demand. As market turbulence and inventory overhangs subside, this supports future revenue stability and growth. The company is actively focusing on premium and larger rim-size tire segments (18-inch and above), launching a significant number of new SKUs globally. This supports a richer product mix and potential for margin expansion as consumer preferences move upmarket.

Read the complete narrative.

What exactly did analysts build into their forecast to justify a higher target? Big calls on margins, product shifts, and sales outlook drive this valuation. But the real surprise is how they see the value being unlocked. Explore the specifics behind the number that has caught the street’s attention.

Result: Fair Value of $9.46 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent competition from low-cost imports and ongoing global trade disruptions could undermine Goodyear’s projected margin recovery and revenue stabilization.

Find out about the key risks to this Goodyear Tire & Rubber narrative.

Build Your Own Goodyear Tire & Rubber Narrative

If you see the story playing out differently or want to dig into the numbers yourself, you can easily put together your own view in just a few minutes with Do it your way.

A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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