Chemicals - Specialty · NYSE
Current Price
$105.08
Intrinsic Value
$101.71
-3.3% margin of safety
As of 2026-10-07, the base-case DCF model estimates the intrinsic value of PPG Industries, Inc. (PPG) at $101.71 per share, compared with a market price of $105.08, a margin of safety of -3.3%. The base case assumes 3.0% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $80.84 to $125.88. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
At $105.08, PPG trades about 3.3% above the base-case intrinsic value estimate, a modest premium. By this model the price sits within a normal band, though faster growth than assumed would change the picture.
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
Intrinsic Value
$101.71
Margin of safety
-3.3%
Expected annual return
-0.6%
Base case assumptions: 3.0% annual growth, 10.0% discount rate, 16.6x exit multiple, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for PPG Industries, Inc. respond.
Open DCF Calculator for PPGPPG 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.
Revenue/Share (TTM)
$73.64
FCF/Share (TTM)
$6.31
ROIC (TTM)
8.8%
ROE (TTM)
19.5%
P/FCF
16.6x
EV/EBITDA
10.5x
FCF Yield
6.02%
Debt/Equity
0.88x
On a trailing twelve-month basis, PPG generates free cash flow per share of $6.31 alongside a ROIC of 8.8%, both central inputs for a DCF valuation. Its P/FCF ratio of 16.6x and FCF yield of 6.02% then frame how PPG is priced against peers on a cash flow basis.
PPG Industries, Inc. currently generates $6.31 in free cash flow per share. At the current price of $105.08, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
PPG trades at a P/FCF ratio of 16.6x with a free cash flow yield of 6.02%. This P/FCF is in a moderate range. However, whether PPG is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
To perform a DCF valuation on PPG Industries, Inc.: (1) Start with the trailing free cash flow per share ($6.31) as the base, (2) project future FCF growth over 5-10 years based on Chemicals - Specialty industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting PPG's risk profile — with a debt-to-equity of 0.88x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For PPG Industries, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Chemicals - Specialty trends, then discounting those amounts to today's dollars. PPG's ROIC of 8.8% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For PPG, with a debt-to-equity ratio of 0.88x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 10.5x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
DCF and P/E value PPG with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair 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.