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Goodyear Tire & Rubber (GT) Expands UltraGrip Range, Is The Stock A Bargain?

Simply Wall St · 2d ago

Goodyear Tire & Rubber (GT) has drawn fresh attention after expanding its UltraGrip Performance 3 winter tire range to 344 SKUs, adding 66 new European fitments and deepening original equipment ties with BMW, Porsche, and Mercedes-Benz.

See our latest analysis for Goodyear Tire & Rubber.

These new UltraGrip fitments arrive as Goodyear Tire & Rubber’s momentum has been mixed, with a 7 day share price return of 3.69% alongside a year to date share price decline of 24.44%, and a 1 year total shareholder return that is down 37.65% pointing to still cautious sentiment.

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Goodyear Tire & Rubber has a broad global footprint and fresh product news, yet the stock is still down sharply over the past year. Does that mix set up a bargain, or is the current price already fair?

Most Popular Narrative: 24.6% Undervalued

The most followed narrative currently places Goodyear Tire & Rubber’s fair value at $8.94 versus a last close of $6.74, setting up a valuation gap that rests heavily on future 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.

Read the complete narrative.

Want to see what underpins that gap between price and fair value? The narrative leans on steadier revenues, a margin rebuild, and a future earnings multiple that is below current sector levels. Curious which specific profit and discount rate assumptions tie those strands together into $8.94 per share?

Result: Fair Value of $8.94 (UNDERVALUED)

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

However, the Goodyear Tire & Rubber story also carries clear risks, including pressure from low cost imports and ongoing tariff, trade and distribution disruptions that could unsettle volumes and margins.

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

Another View on Goodyear Tire & Rubber’s Valuation

The earlier narrative points to Goodyear Tire & Rubber trading below a fair value of $8.94, yet Simply Wall St’s DCF model points the other way. On that framework, GT at $6.74 is above an estimated future cash flow value of $3.31, which reads as overvalued rather than cheap. Which story do you think fits the risks and cash generation profile better?

Look into how the SWS DCF model arrives at its fair value.

GT Discounted Cash Flow as at Jul 2026
GT Discounted Cash Flow as at Jul 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Goodyear Tire & Rubber for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment on Goodyear Tire & Rubber clearly split between risks and rewards, this is a good time to review the details and form your own stance using the 1 key reward and 2 important warning signs.

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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.