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 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 44.17%. As for the metrics that stood out in our discounted cash flow analysis of Goodyear Tire & Rubber Co, consider:
Its compound free cash flow growth rate, as measured over the past 4.79 years, is -0.1% -- higher than only 16.8% of stocks in our DCF forecasting set.
18% of the company's capital comes from equity, which is greater than just 9.51% 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 95.93% 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 ADNT, AXL, GPS, HMTV, and DKS.