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Goodyear Tire & Rubber Co (Goodyear Tire & Rubber Co) Graham Number : $N/A (As of Dec. 2023)


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What is Goodyear Tire & Rubber Co Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-04-26), the stock price of Goodyear Tire & Rubber Co is $11.74. Goodyear Tire & Rubber Co's graham number for the quarter that ended in Dec. 2023 was $N/A. Therefore, Goodyear Tire & Rubber Co's Price to Graham Number ratio for today is N/A.

The historical rank and industry rank for Goodyear Tire & Rubber Co's Graham Number or its related term are showing as below:

During the past 13 years, the highest Price to Graham Number ratio of Goodyear Tire & Rubber Co was 1.32. The lowest was 0.59. And the median was 0.74.

GT's Price-to-Graham-Number is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.145
* Ranked among companies with meaningful Price-to-Graham-Number only.

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Goodyear Tire & Rubber Co Graham Number Historical Data

The historical data trend for Goodyear Tire & Rubber Co's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Goodyear Tire & Rubber Co Graham Number Chart

Goodyear Tire & Rubber Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 27.83 14.10 -

Goodyear Tire & Rubber Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.22 7.50 - - -

Competitive Comparison of Goodyear Tire & Rubber Co's Graham Number

For the Auto Parts subindustry, Goodyear Tire & Rubber Co's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Goodyear Tire & Rubber Co's Price-to-Graham-Number Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Goodyear Tire & Rubber Co's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Goodyear Tire & Rubber Co's Price-to-Graham-Number falls into.



Goodyear Tire & Rubber Co Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Goodyear Tire & Rubber Co's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*10.282*-0.438)
=N/A

Goodyear Tire & Rubber Co's Graham Number for the quarter that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*10.282*-0.104)
=N/A

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Goodyear Tire & Rubber Co  (NAS:GT) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Goodyear Tire & Rubber Co's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=11.74/N/A
=N/A

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Goodyear Tire & Rubber Co Graham Number Related Terms

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Goodyear Tire & Rubber Co (Goodyear Tire & Rubber Co) Business Description

Traded in Other Exchanges
Address
200 Innovation Way, Akron, OH, USA, 44316-0001
Goodyear Tire & Rubber Co manufactures and sells a variety of rubber tires under the Goodyear brand name. The firm's tires are used for automobiles, trucks, buses, aircraft, motorcycles, mining equipment, farm equipment, and industrial equipment. The company operates its business through three operating segments representing its regional tire businesses: Americas; Europe, the Middle East, and Africa (EMEA); and the Asia Pacific.
Executives
Darren R Wells officer: Vice President & Treasurer THE GOODYEAR TIRE & RUBBER COMPANY, 1144 EAST MARKET STREET, AKRON OH 44316-0001
Roger Wood director 3850 HAMLIN RD., AUBURN HILLS MI 48326
Max H Mitchell director CRANE CO, 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Joseph R Hinrichs director FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
Margaret V Snyder officer: Vice President and Controller 200 INNOVATION WAY, AKRON OH 44316
Christina L Zamarro officer: EVP & Chief Financial Officer 200 INNOVATION WAY, AKRON OH 44316
Norma Clayton director 1915 REXFORD ROAD, CHARLOTTE NC 28211
Richard J Kramer officer: Senior Vice President THE GOODYEAR TIRE & RUBBER COMPANY, 1144 EAST MARKET STREET, AKRON OH 44316-0001
Stephen R Mcclellan officer: Pres., NAT Consumer Business 1144 EAST MARKET STREET, AKRON OH 44316
Prashanth Mahendra-rajah director C/O WABCO HOLDINGS INC., ONE CENTENNIAL AVENUE, PISCATAWAY NJ 08855
Karla R Lewis director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Nathaniel Madarang officer: President, Asia Pacific 200 INNOVATION WAY, AKRON OH 44316
Jonathan Bellissimo officer: SR VP Global Operations & Tech 200 INNOVATION WAY, AKRON OH 44316
Hera K Siu director 200 INNOVATION WAY, AKRON OH 44316
David Emmitt Phillips officer: Sr VP and General Counsel 200 INNOVATION WAY, AKRON OH 44316