Goodyear Tire & Rubber Co (GT)

Market price: $4.44

3 valuation methods

• EV / EBITDA: $0.00 to $10.84 (midpoint $1.02)
• EV / Revenue: $22.14 to $89.77 (midpoint $41.26)
• EV / Gross Profit: $22.90 to $77.10 (midpoint $44.69)

Debt is most of what funds this company — its shares are about 19% of its total enterprise value. The enterprise-value bars here (3) value the whole business and then subtract the debt, so a small difference in the business's value becomes a large one per share. That is arithmetic, not a fault in the estimate, but it is why those ranges are wide.