The Goodyear Tire & Rubber Company (GT) Company Bio
Goodyear Tire & Rubber develops, manufactures, distributes, and sells tires, and related products and services in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company was founded in 1898 and is based in Akron, Ohio.
GT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Goodyear Tire & Rubber Co ranked in the 52th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 51% on a DCF basis. The most interesting components of our discounted cash flow analysis for Goodyear Tire & Rubber Co ended up being:
The company's compound free cash flow growth rate over the past 4.79 years comes in at -0.1%; that's greater than just 17.34% of US stocks we're applying DCF forecasting to.
18% of the company's capital comes from equity, which is greater than just 10.51% of stocks in our cash flow based forecasting set.
As a business, Goodyear Tire & Rubber Co experienced a tax rate of about 48% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 95.95% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GT, try NTN, HZO, IAA, AAP, and HMTV.