Is Goodyear Tire & Rubber Co. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Goodyear Tire & Rubber Co. has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued based on its current metrics, with a P/E ratio of 8, a Price to Book Value of 0.71, and an EV to EBITDA ratio of 5.61. In comparison to peers, Goodyear's P/E ratio is notably lower than LKQ Corp. at 12.19 and Dorman Products, Inc. at 21.88, reinforcing its attractive valuation.
Despite the recent stock performance showing a year-to-date return of -4.33% compared to the S&P 500's 12.22%, the long-term outlook remains positive, with a 1-year return of 6.17% against the S&P 500's 17.14%. This suggests that while Goodyear has underperformed in the short term, its current valuation metrics indicate it is a compelling investment opportunity relative to its peers.