Goodyear Tire & Rubber - Comparative Multiple Analysis

Goodyear Tire & Rubber (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Goodyear Tire & Rubber

WikiWealth compares Goodyear Tire & Rubber's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Goodyear Tire & Rubber's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Goodyear Tire & Rubber.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Goodyear Tire & Rubber's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Goodyear Tire & Rubber's Analysis

How does this work? The Comparative Investment Analysis determines the value of Goodyear Tire & Rubber by comparing Goodyear Tire & Rubber financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Goodyear Tire & Rubber.

See the Goodyear Tire & Rubber cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Goodyear Tire & Rubber.

Also, see the Goodyear Tire & Rubber's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Goodyear Tire & Rubber's valuation conclusion for a quick summary.