Is Goodyear Tire & Rubber Co. overvalued or undervalued?

Jun 25 2025 08:04 AM IST
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As of May 7, 2025, Goodyear Tire & Rubber Co. is fairly valued with a P/E ratio of 8 and a Price to Book Value of 0.71, making it significantly cheaper than competitors like Dorman Products, which has a P/E of 16.09, despite recent underperformance against the S&P 500.
As of 7 May 2025, the valuation grade for Goodyear Tire & Rubber Co. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 8, a Price to Book Value of 0.71, and an EV to EBITDA of 5.61, which suggest a reasonable valuation compared to its peers.

In comparison, Dorman Products, Inc. is considered expensive with a P/E ratio of 16.09, highlighting that Goodyear is trading at a significant discount relative to some of its competitors. Additionally, Goodyear's ROE stands at 9.13%, which is competitive within its industry. Despite recent underperformance against the S&P 500, particularly over the past year, the company's valuation metrics indicate it is positioned fairly in the current market landscape.
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