A Look At Goodyear Tire & Rubber (GT) Valuation After David Cichocki’s Appointment In The Americas

Goodyear Tire & Rubber Company +1.94%

Goodyear Tire & Rubber Company

GT

8.94

+1.94%

Goodyear Tire & Rubber (GT) has drawn fresh attention after appointing David Cichocki as Managing Director, Americas and Chief Sales Officer, Americas Consumer, a leadership move that may influence how investors assess its regional execution.

The leadership change comes as momentum in Goodyear Tire & Rubber's share price has been building, with a 30-day share price return of 10.08% and a 90-day share price return of 35.93%. However, the 3-year total shareholder return of a 13.42% decline shows a tougher longer term backdrop.

If this appointment has you thinking about other auto names, it could be a useful moment to scan auto manufacturers for additional opportunities in the sector.

With the stock up sharply in recent months, yet still showing an intrinsic discount and trading close to its analyst price target, you have to ask: Is Goodyear undervalued today, or is the market already pricing in future growth?

Most Popular Narrative: 30% Undervalued

Goodyear Tire & Rubber's most followed narrative pegs fair value at $9.64 per share, almost exactly in line with the recent $9.61 close, yet still flags a sizeable discount to its longer term cash flow potential.

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.

Curious what sits behind that fair value call? The narrative leans heavily on earnings turning positive, margins stabilising, and a future earnings multiple that implies more confidence than recent share price moves suggest. The tension lies in modest revenue assumptions paired with a very different profit profile.

Result: Fair Value of $9.64 (UNDERVALUED)

However, this story can change quickly if competitive pressure from low cost manufacturers or prolonged weakness in commercial truck demand continues to squeeze volumes and margins.

Build Your Own Goodyear Tire & Rubber Narrative

If you see the story differently, or simply prefer to weigh the data yourself, you can build a fresh view in just a few minutes. Start with Do it your way.

A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

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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.

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