Goodyear (GT): Reassessing Valuation After Recent Share Price Rebound

Goodyear Tire & Rubber (GT) has been grinding through a mixed stretch, with the stock slipping over the past year but rebounding around 13% in the past month as investors reassess its valuation.

See our latest analysis for Goodyear Tire & Rubber.

That recent 1 month share price return of 13.34% looks more like a sentiment reset than a full trend change, especially with the 1 year total shareholder return still down 16.29%. Momentum is improving, but not yet convincing in the longer term.

If this kind of rebound has you watching the broader auto space, it could be worth exploring other auto manufacturers that might be earlier in their re rating story.

With modest revenue growth, a sharp rebound in earnings, and shares still trading at a hefty intrinsic discount, investors face a key question: Is Goodyear genuinely undervalued here, or is the market already pricing in its next leg of growth?

With Goodyear Tire & Rubber’s fair value pinned at $9.46 against a last close of $8.58, the leading narrative suggests upside still remains on the table.

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.

Read the complete narrative.

Curious how shrinking margins, flat revenues and a higher future earnings multiple can still point to upside? The narrative stitches these moving parts into one bold valuation story. Want to see which assumptions really carry the weight?

Result: Fair Value of $9.46 (UNDERVALUED)

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

However, persistent low cost competition and ongoing tariff uncertainty could derail margin progress and undermine the case for a smooth earnings recovery.

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

If you are not aligned with this view, or prefer to dig into the figures yourself, you can build your own narrative in just a few minutes: 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.

Before you move on, lock in an information advantage by scanning hand picked stock ideas on Simply Wall St that match different return and risk profiles.

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