PPG Industries, Inc. (PPG) Stock Valuation — PE Analysis
Chemicals - Specialty · NYSE
Current Price
$105.08
PE Ratio (TTM)
15.2x
Intrinsic Value
$104.27
-0.8% margin of safety
COMPETITIVE MOAT
↑Brand and Reputation
PPG's long-standing reputation for quality and innovation in coatings builds trust with customers. This brand recognition fosters loyalty and commands premium pricing in competitive markets.
↑Scale and Global Reach
PPG's extensive global manufacturing and distribution network provides significant economies of scale. This allows for efficient production and delivery, creating a cost advantage over smaller competitors.
↑Customer Relationships and Innovation
PPG's focus on customer-centric solutions, as highlighted by its Tianjin Innovation Day, strengthens partnerships. Developing tailored products and technical support creates switching costs for clients.
INVESTMENT RISKS
↓Economic Sensitivity
Demand for PPG's products is tied to cyclical industries like automotive and aerospace. Economic downturns can significantly reduce sales volumes and profitability.
↓Regulatory and Environmental Compliance
PPG operates in a highly regulated environment with evolving environmental standards. Compliance costs and potential liabilities from product usage or manufacturing can impact financial performance.
↓Geopolitical and Supply Chain Disruptions
Global operations expose PPG to geopolitical risks and potential supply chain disruptions. Events like trade disputes or regional conflicts can impact production and distribution.
Base case
PPG base case PE valuation
At a current price of $105.08, the base case PE valuation puts PPG fair value near $104.27 per share. That figure assumes 3.0% yearly earnings growth, a target PE multiple of 15.12x, and a 10% discount rate.
Intrinsic Value
$104.27
Margin of safety
-0.8%
Expected annual return
-0.2%
Base case assumptions: 3.0% annual earnings growth, 15.12x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PPG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for PPG Industries, Inc. respond.
Open PE Calculator for PPGCompany Overview
PPG Industries, Inc. operates globally as a manufacturer and distributor of paints, protective coatings, and various specialty materials. Its Performance Coatings division offers an extensive range of products, including paints, solvents, adhesives, sealants, and software, designed for the repair and refurbishment of automotive and commercial vehicles, light industrial applications, and signage. This segment also supplies advanced coatings, sealants, transparent components (such as transparent armor), engineered materials, and chemical management services to the commercial, military, and general aviation aerospace sectors. Furthermore, it develops protective coatings and finishes for metals and large-scale structures, serving metal fabricators, heavy-duty maintenance contractors, and manufacturers of ships, bridges, and rail cars. Architectural offerings include paints, wood stains, adhesives, and sundry items for both professional contractors and individual consumers for the decoration and upkeep of residential and commercial buildings. Additionally, it provides paints, thermoplastics, and other advanced solutions for pavement marking. The Industrial Coatings segment delivers specialized coatings, adhesives, sealants, and metal pretreatment solutions. These are applied across a diverse array of manufactured goods, including appliances, agricultural and construction machinery, consumer electronics, automotive components, building materials, kitchenware, and transportation vehicles, often supported by on-site application services. This segment also produces coatings specifically for packaging, such as metal cans, closures, plastic tubes, and promotional or specialty containers. Beyond coatings, PPG innovates with unique materials like amorphous precipitated silica for tires and battery separators; TESLIN substrates utilized in labels, e-passports, driver's licenses, and identification cards; as well as organic light-emitting diode (OLED) materials, display and lighting lens components, optical lenses, color-changing technologies, and photochromic dyes. Founded in 1883, PPG Industries, Inc. is headquartered in Pittsburgh, Pennsylvania.
Financial Metrics — PPG PE Stock Valuation Data
PE Ratio (TTM)
15.2x
PEG Ratio
0.26
Earnings Yield
6.62%
ROE (TTM)
19.5%
Revenue/Share (TTM)
$73.64
Dividend Yield
2.69%
Debt/Equity
0.88x
Frequently Asked Questions
What is the PE ratio of PPG?
The trailing twelve-month PE ratio of PPG reflects how much investors pay per dollar of PPG Industries, Inc.'s earnings. This metric is most useful when compared to Chemicals - Specialty peers and the company's own historical range.
Is PPG overvalued based on PE ratio?
PPG's PE of 15.2x combined with a PEG ratio of 0.26 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Chemicals - Specialty, a DCF analysis may be more appropriate.
How do I value PPG stock using PE ratio?
To value PPG Industries, Inc. using PE: (1) Compare the current PE (15.2x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (0.26) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of PPG?
PPG's PEG ratio is 0.26, calculated by dividing the PE ratio (15.2x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PPG stock valuation?
PE ratio gives a quick relative read — how PPG is priced versus Chemicals - Specialty peers. DCF provides an absolute value based on projected free cash flows. For PPG, with a strong ROE of 19.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See PPG DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value PPG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.