WEBULL
WebtradeDownload

Goodyear (GT) Stock Looks Discounted Following Fayetteville Plant Closure News

Simply Wall St · 1d ago

Goodyear Tire & Rubber has seen its share price fall sharply in recent years, and that slide puts fresh focus on whether the current US$4.68 level makes sense when set against its sales base. With the business reshaping its operations and footprint, the central issue is how much of its revenue stream the market is willing to pay for today.

  • Over the past 5 years the stock price has fallen 75.2%, which raises the question of how much long term sales power investors now believe Goodyear really has.
  • Management is closing several manufacturing and chemical facilities and refocusing on core tire products, a move that can affect how efficiently future sales convert into profit and cash.
  • Your read on Goodyear Tire & Rubber is one view; the desks covering it have another. See what analysts think Goodyear Tire & Rubber's shares could be worth.

For investors, the debate is whether Goodyear's current share price is properly reflecting the scale and quality of its sales today.

If you are weighing Goodyear Tire & Rubber against other ways to play this theme, it can help to see how a broader set of companies with strong financial underpinnings is priced today using our solid balance sheet and fundamentals stocks screener (25 results).

Does Goodyear Tire & Rubber Look Undervalued on Sales?

P/S is usually a better yardstick for Goodyear Tire & Rubber than P/E because earnings can swing around while sales tend to move more steadily for a manufacturer like this.

On this measure, Goodyear trades on a P/S of 0.1x, which is well below both the Auto Components industry average of 0.5x and the peer group at 0.4x. The fair multiple implied by Simply Wall St's model, which blends the firm’s growth profile, margins, risk and scale, also sits above the current level, so the shares screen as undervalued on this framework. Because the business is exiting chemicals and closing plants to reshape its footprint, investors are paying a relatively low price for each dollar of revenue while those changes work through reported sales and profitability. Despite the planned plant closures and sales decline highlighted in the 2026 results, the current P/S still leaves Goodyear Tire & Rubber trading at a discount to what this model suggests for its fundamentals. Explore the numbers behind Goodyear Tire & Rubber's P/S valuation.

NasdaqGS:GT P/S Ratio as at Oct 2026
NasdaqGS:GT P/S Ratio as at Oct 2026

The Goodyear Tire & Rubber Narrative: What Would Justify Today's Price?

Simply Wall St Narratives give you structured what if paths for Goodyear Tire & Rubber, spelling out which combinations of growth, margins and earnings would need to hold for the stock to be worth materially more or materially less than today's price, based on scenarios shared on the Community page. Rather than relying on a single multiple or model output, each narrative lays out the assumptions behind its view of fair value so you can compare them with future reported results.

One of the top community narratives on Goodyear Tire & Rubber: 55% undervalued

"Goodyear does not have a shortage of assets; it has a return problem on a large part of them…"

Discover why this Narrative puts Goodyear Tire & Rubber at 55% undervalued.

One more piece of the Goodyear Tire & Rubber puzzle

Price multiples tell you what the market is willing to pay today, but the projections from sector analysts hint at where they think this reshaped tire maker could be a few years from now. Explore where analysts expect Goodyear Tire & Rubber to be in a few years.

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.