The Goodyear Tire & Rubber Company

NasdaqGS:GT Stock Report

Market Cap: US$2.8b

Goodyear Tire & Rubber Valuation

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

Below Fair Value: GT ($10.13) is trading below our estimate of fair value ($12.89)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for GT. This is calculated by dividing GT's market cap by their current revenue.
What is GT's PS Ratio?
PS Ratio0.2x
SalesUS$19.05b
Market CapUS$2.77b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for GT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
PHIN PHINIA
0.7x0.9%US$2.3b
VC Visteon
0.7x5.5%US$2.5b
VTSC.Y Vitesco Technologies Group
0.2x-0.8%US$2.0b
PATK Patrick Industries
0.9x6.4%US$3.0b
GT Goodyear Tire & Rubber
0.2x0.4%US$2.8b

Price-To-Sales vs Peers: GT is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.6x).


Price to Sales Ratio vs Industry

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

16 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.0.7x9.5%
GT Goodyear Tire & Rubber
0.2x0.4%US$2.77b
LEA Lear
0.2x2.4%US$5.32b
VTSC.Y Vitesco Technologies Group
0.2x-0.8%US$2.00b
GT 0.2xIndustry Avg. 0.7xNo. of Companies16PS01.22.43.64.86+
16 CompaniesEstimated GrowthMarket Cap
Industry Avg.0.7x29.5%
GT Goodyear Tire & Rubber
0.2x90.6%US$2.77b
No more companies

Price-To-Sales vs Industry: GT is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Auto Components industry average (0.7x).


Price to Sales Ratio vs Fair Ratio

What is GT'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.

GT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: GT is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


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 GT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$10.13
US$13.43
+32.6%
29.2%US$19.00US$9.20n/a6
Nov ’25US$8.22
US$13.05
+58.8%
30.3%US$19.00US$8.90n/a6
Oct ’25US$8.74
US$13.22
+51.2%
28.8%US$19.00US$8.90n/a6
Sep ’25US$8.82
US$13.64
+54.6%
23.0%US$19.00US$8.90n/a8
Aug ’25US$9.84
US$15.03
+52.7%
14.8%US$19.00US$12.00n/a8
Jul ’25US$11.08
US$15.14
+36.7%
15.6%US$19.00US$12.00n/a7
Jun ’25US$12.31
US$15.33
+24.6%
16.3%US$19.00US$12.00n/a6
May ’25US$11.93
US$15.54
+30.3%
15.2%US$19.00US$12.00n/a7
Apr ’25US$13.55
US$15.54
+14.7%
15.2%US$19.00US$12.00n/a7
Mar ’25US$11.73
US$15.54
+32.5%
15.2%US$19.00US$12.00n/a7
Feb ’25US$14.04
US$16.53
+17.7%
14.8%US$21.00US$13.00n/a7
Jan ’25US$14.32
US$16.40
+14.5%
15.9%US$21.00US$13.00n/a7
Dec ’24US$14.23
US$16.33
+14.8%
17.2%US$21.00US$13.00n/a6
Nov ’24US$11.80
US$14.50
+22.9%
10.3%US$17.00US$13.00US$8.226
Oct ’24US$12.43
US$14.33
+15.3%
11.9%US$17.00US$12.00US$8.746
Sep ’24US$13.37
US$14.33
+7.2%
11.9%US$17.00US$12.00US$8.826
Aug ’24US$16.00
US$15.33
-4.2%
15.8%US$19.00US$13.00US$9.846
Jul ’24US$13.68
US$15.17
+10.9%
15.4%US$19.00US$13.00US$11.086
Jun ’24US$13.31
US$15.17
+13.9%
15.4%US$19.00US$13.00US$12.316
May ’24US$10.96
US$13.29
+21.2%
20.8%US$17.00US$9.00US$11.937
Apr ’24US$11.02
US$13.29
+20.6%
23.4%US$17.00US$9.00US$13.557
Mar ’24US$11.47
US$13.29
+15.8%
23.4%US$17.00US$9.00US$11.737
Feb ’24US$11.51
US$13.57
+17.9%
20.4%US$17.00US$9.00US$14.047
Jan ’24US$10.15
US$14.14
+39.3%
17.1%US$17.00US$10.00US$14.327
Dec ’23US$11.22
US$14.14
+26.1%
17.1%US$17.00US$10.00US$14.237
Nov ’23US$10.81
US$16.83
+55.7%
20.1%US$22.00US$12.00US$11.807

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.


Discover undervalued companies