GT Relative Valuation
GT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GT is overvalued; if below, it's undervalued.
Historical Valuation
Goodyear Tire & Rubber Co (GT) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.14 is considered Undervalued compared with the five-year average of 12.72. The fair price of Goodyear Tire & Rubber Co (GT) is between 23.78 to 28.55 according to relative valuation methord. Compared to the current price of 9.13 USD , Goodyear Tire & Rubber Co is Undervalued By 61.59%.
Relative Value
Fair Zone
23.78-28.55
Current Price：9.13
61.59%
Undervalued
7.41
PE
1Y
3Y
5Y
5.76
EV/EBITDA
Goodyear Tire & Rubber Co. (GT) has a current EV/EBITDA of 5.76. The 5-year average EV/EBITDA is 5.64. The thresholds are as follows: Strongly Undervalued below 4.55, Undervalued between 4.55 and 5.09, Fairly Valued between 6.18 and 5.09, Overvalued between 6.18 and 6.73, and Strongly Overvalued above 6.73. The current Forward EV/EBITDA of 5.76 falls within the Historic Trend Line -Fairly Valued range.
11.04
EV/EBIT
Goodyear Tire & Rubber Co. (GT) has a current EV/EBIT of 11.04. The 5-year average EV/EBIT is 10.78. The thresholds are as follows: Strongly Undervalued below 7.74, Undervalued between 7.74 and 9.26, Fairly Valued between 12.30 and 9.26, Overvalued between 12.30 and 13.82, and Strongly Overvalued above 13.82. The current Forward EV/EBIT of 11.04 falls within the Historic Trend Line -Fairly Valued range.
0.14
PS
Goodyear Tire & Rubber Co. (GT) has a current PS of 0.14. The 5-year average PS is 0.18. The thresholds are as follows: Strongly Undervalued below 0.09, Undervalued between 0.09 and 0.13, Fairly Valued between 0.22 and 0.13, Overvalued between 0.22 and 0.27, and Strongly Overvalued above 0.27. The current Forward PS of 0.14 falls within the Historic Trend Line -Fairly Valued range.
2.89
P/OCF
Goodyear Tire & Rubber Co. (GT) has a current P/OCF of 2.89. The 5-year average P/OCF is 4.40. The thresholds are as follows: Strongly Undervalued below -3.29, Undervalued between -3.29 and 0.55, Fairly Valued between 8.24 and 0.55, Overvalued between 8.24 and 12.08, and Strongly Overvalued above 12.08. The current Forward P/OCF of 2.89 falls within the Historic Trend Line -Fairly Valued range.
-6.97
P/FCF
Goodyear Tire & Rubber Co. (GT) has a current P/FCF of -6.97. The 5-year average P/FCF is 28.06. The thresholds are as follows: Strongly Undervalued below -99.60, Undervalued between -99.60 and -35.77, Fairly Valued between 91.88 and -35.77, Overvalued between 91.88 and 155.71, and Strongly Overvalued above 155.71. The current Forward P/FCF of -6.97 falls within the Historic Trend Line -Fairly Valued range.
Goodyear Tire & Rubber Co (GT) has a current Price-to-Book (P/B) ratio of 0.85. Compared to its 3-year average P/B ratio of 0.66 , the current P/B ratio is approximately 28.95% higher. Relative to its 5-year average P/B ratio of 0.79, the current P/B ratio is about 7.31% higher. Goodyear Tire & Rubber Co (GT) has a Forward Free Cash Flow (FCF) yield of approximately -13.79%. Compared to its 3-year average FCF yield of -11.50%, the current FCF yield is approximately 19.93% lower. Relative to its 5-year average FCF yield of -5.77% , the current FCF yield is about 139.03% lower.
0.85
P/B
Median3y
0.66
Median5y
0.79
-13.79
FCF Yield
Median3y
-11.50
Median5y
-5.77
Competitors Valuation Multiple
The average P/S ratio for GT's competitors is 1.10, providing a benchmark for relative valuation. Goodyear Tire & Rubber Co Corp (GT) exhibits a P/S ratio of 0.14, which is -87.47% above the industry average. Given its robust revenue growth of -3.71%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of GT increased by 4.40% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -0.70 to -47.30.
The secondary factor is the Revenue Growth, contributed -3.71%to the performance.
Overall, the performance of GT in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Goodyear Tire & Rubber Co (GT) currently overvalued or undervalued?
Goodyear Tire & Rubber Co (GT) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.14 is considered Undervalued compared with the five-year average of 12.72. The fair price of Goodyear Tire & Rubber Co (GT) is between 23.78 to 28.55 according to relative valuation methord. Compared to the current price of 9.13 USD , Goodyear Tire & Rubber Co is Undervalued By 61.59% .
What is Goodyear Tire & Rubber Co (GT) fair value?
GT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Goodyear Tire & Rubber Co (GT) is between 23.78 to 28.55 according to relative valuation methord.
How does GT's valuation metrics compare to the industry average?
The average P/S ratio for GT's competitors is 1.10, providing a benchmark for relative valuation. Goodyear Tire & Rubber Co Corp (GT) exhibits a P/S ratio of 0.14, which is -87.47% above the industry average. Given its robust revenue growth of -3.71%, this premium appears unsustainable.
What is the current P/B ratio for Goodyear Tire & Rubber Co (GT) as of Jan 07 2026?
As of Jan 07 2026, Goodyear Tire & Rubber Co (GT) has a P/B ratio of 0.85. This indicates that the market values GT at 0.85 times its book value.
What is the current FCF Yield for Goodyear Tire & Rubber Co (GT) as of Jan 07 2026?
As of Jan 07 2026, Goodyear Tire & Rubber Co (GT) has a FCF Yield of -13.79%. This means that for every dollar of Goodyear Tire & Rubber Co’s market capitalization, the company generates -13.79 cents in free cash flow.
What is the current Forward P/E ratio for Goodyear Tire & Rubber Co (GT) as of Jan 07 2026?
As of Jan 07 2026, Goodyear Tire & Rubber Co (GT) has a Forward P/E ratio of 7.41. This means the market is willing to pay $7.41 for every dollar of Goodyear Tire & Rubber Co’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Goodyear Tire & Rubber Co (GT) as of Jan 07 2026?
As of Jan 07 2026, Goodyear Tire & Rubber Co (GT) has a Forward P/S ratio of 0.14. This means the market is valuing GT at $0.14 for every dollar of expected revenue over the next 12 months.