Goodyear Tire Valuation
| GT Stock | USD 11.89 0.01 0.08% |
At this time, the firm appears to be undervalued. Goodyear Tire Rubber retains a regular Real Value of $13.36 per share. The prevalent price of the firm is $11.89. Our model calculates the value of Goodyear Tire Rubber from evaluating the firm fundamentals such as Return On Equity of -0.13, current valuation of 11.29 B, and Return On Asset of 0.0152 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage acquiring undervalued assets and selling overvalued assets since, at some point, asset prices and their ongoing real values will come together. Key fundamental drivers impacting Goodyear Tire's valuation include:
Price Book 0.7469 | Enterprise Value 11.3 B | Enterprise Value Ebitda 13.1232 | Price Sales 0.1738 | Forward PE 9.3985 |
Undervalued
Today
Please note that Goodyear Tire's price fluctuation is not too volatile at this time. Calculation of the real value of Goodyear Tire Rubber is based on 3 months time horizon. Increasing Goodyear Tire's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Goodyear Tire Rubber is useful when determining the fair value of the Goodyear stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Goodyear Tire. Since Goodyear Tire is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Goodyear Stock. However, Goodyear Tire's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 11.89 | Real 13.36 | Target 14.2 | Hype 11.87 |
The real value of Goodyear Stock, also known as its intrinsic value, is the underlying worth of Goodyear Tire Rubber Company, which is reflected in its stock price. It is based on Goodyear Tire's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Goodyear Tire's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Goodyear Tire's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Goodyear Tire Rubber helps investors to forecast how Goodyear stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Goodyear Tire more accurately as focusing exclusively on Goodyear Tire's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Goodyear Tire's intrinsic value based on its ongoing forecasts of Goodyear Tire's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Goodyear Tire's closest peers. When choosing an evaluation method for Goodyear Tire Rubber, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Goodyear Tire Investments |
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Goodyear Valuation Trend
Knowing Goodyear Tire's actual value is paramount for traders to make sound investment determinations. Goodyear Tire's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Goodyear Tire's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Goodyear Tire's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Goodyear Market Cap
Goodyear Tire Rubber is rated below average in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is currently estimated at about 86.11 Billion. Goodyear Tire holds roughly 3.38 Billion in market capitalization claiming about 4% of stocks in Consumer Discretionary industry.Goodyear Tire Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Goodyear Tire's current stock value. Our valuation model uses many indicators to compare Goodyear Tire value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Goodyear Tire competition to find correlations between indicators driving Goodyear Tire's intrinsic value. More Info.Goodyear Tire Rubber is rated below average in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.23 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Goodyear Tire Rubber is roughly 4.31 . Price To Book Ratio is likely to drop to 0.84 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Goodyear Tire by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Goodyear Tire's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Goodyear Tire's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Goodyear Tire's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Goodyear Tire and how it compares across the competition.
About Goodyear Tire Valuation
The stock valuation mechanism determines the current worth of Goodyear Tire Rubber on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Goodyear Tire Rubber. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Goodyear Tire Rubber based exclusively on its fundamental and basic technical indicators. By analyzing Goodyear Tire's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Goodyear Tire's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Goodyear Tire. We calculate exposure to Goodyear Tire's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Goodyear Tire's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.5 B | 3.7 B | |
| Pretax Profit Margin | (0.03) | (0.03) | |
| Operating Profit Margin | 0.03 | 0.03 | |
| Net Loss | (0.03) | (0.03) | |
| Gross Profit Margin | 0.17 | 0.25 |
Goodyear Tire Quarterly Retained Earnings |
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8 Steps to conduct Goodyear Tire's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Goodyear Tire's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Goodyear Tire's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Goodyear Tire's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Goodyear Tire's revenue streams: Identify Goodyear Tire's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Goodyear Tire's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Goodyear Tire's growth potential: Evaluate Goodyear Tire's management, business model, and growth potential.
- Determine Goodyear Tire's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Goodyear Tire's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Goodyear Tire represents a small ownership stake in the entity. As a stockholder of Goodyear, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Goodyear Tire Dividends Analysis For Valuation
Please note that Goodyear Tire has scaled down on payment of dividends at this time. Price Earnings To Growth Ratio is likely to gain to 0.02 in 2024, whereas Retained Earnings are likely to drop slightly above 3.2 B in 2024.
There are various types of dividends Goodyear Tire can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Goodyear shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Goodyear Tire Rubber directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Goodyear pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Goodyear Tire by the value of the dividends paid out.
Goodyear Tire Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Goodyear Tire does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 285 M | |
| Quarterly Earnings Growth Y O Y | -0.663 | |
| Forward Price Earnings | 9.3985 |
Goodyear Tire Current Valuation Indicators
Valuation refers to the process of determining the present value of Goodyear Tire Rubber and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Goodyear we look at many different elements of the entity such as Goodyear's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Goodyear Tire's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Goodyear Tire's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Goodyear Tire, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Goodyear Tire's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Goodyear Tire's worth.When determining whether Goodyear Tire Rubber is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Goodyear Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Goodyear Tire Rubber Stock. Highlighted below are key reports to facilitate an investment decision about Goodyear Tire Rubber Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Goodyear Tire Rubber. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Complementary Tools for Goodyear Stock analysis
When running Goodyear Tire's price analysis, check to measure Goodyear Tire's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Goodyear Tire is operating at the current time. Most of Goodyear Tire's value examination focuses on studying past and present price action to predict the probability of Goodyear Tire's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Goodyear Tire's price. Additionally, you may evaluate how the addition of Goodyear Tire to your portfolios can decrease your overall portfolio volatility.
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Is Goodyear Tire's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Goodyear Tire. If investors know Goodyear will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Goodyear Tire listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.66) | Earnings Share (2.42) | Revenue Per Share 70.407 | Quarterly Revenue Growth (0.05) | Return On Assets 0.0152 |
The market value of Goodyear Tire Rubber is measured differently than its book value, which is the value of Goodyear that is recorded on the company's balance sheet. Investors also form their own opinion of Goodyear Tire's value that differs from its market value or its book value, called intrinsic value, which is Goodyear Tire's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Goodyear Tire's market value can be influenced by many factors that don't directly affect Goodyear Tire's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Goodyear Tire's value and its price as these two are different measures arrived at by different means. Investors typically determine if Goodyear Tire is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Goodyear Tire's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.