Goodyear Tire & Rubber (GT) has been active in two very different arenas. The company launched its Ultra Grip tractor tire and a Farm Experience Center in India, while also pushing harder into premium EV and luxury SUV tire segments.
See our latest analysis for Goodyear Tire & Rubber.
These product moves come as Goodyear Tire & Rubber trades at US$5.99, with the share price return down 17.27% over 30 days but slightly up 2.04% over 90 days. The 1 year total shareholder return has declined 27.74%, and the 5 year total shareholder return has fallen 61.08%. This points to longer term pressure even as the recent news aims to reshape the story.
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Bulls see Goodyear Tire & Rubber as a discounted way into EV and farm demand, while bears point to long running shareholder losses and recent net income pressure. Which side does the current valuation support next?
Most Popular Narrative: 20% Undervalued
The most followed narrative places Goodyear Tire & Rubber's fair value at $7.46, above the last close at $5.99, and builds a case around margin repair and balance sheet work.
The asset sales (OTR, Dunlop, and Chemical business) and strong progress on deleveraging are expected to yield a significantly improved balance sheet and lower interest burden, enhancing Goodyear's ability to reinvest in growth, drive earnings accretion, and reduce financial risk.
Want to see what sits behind that valuation gap? The narrative leans heavily on a slow rebuild in profitability, modest revenue progress, and a reset future earnings multiple. The mix of cost cuts, premium products and assumed margin lift is central to the fair value story.
Result: Fair Value of $7.46 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors still need to weigh risks around ongoing net losses and competitive pressure from low cost Asian tire manufacturers, which could keep margins under strain.
Find out about the key risks to this Goodyear Tire & Rubber narrative.
Next Steps
With both concerns and reasons for optimism around Goodyear Tire & Rubber on the table, it makes sense to review the data and move quickly to form your own view. To weigh both sides in one place, take a look at the 2 key rewards and 1 important warning sign
Looking for more ideas beyond Goodyear Tire & Rubber?
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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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