PPG Industries, Inc. (PPG) Stock Valuation — PE Analysis
Chemicals - Specialty · NYSE
Current Price
$111.91
PE Ratio (TTM)
15.9x
Intrinsic Value
$109.29
-2.4% margin of safety
COMPETITIVE MOAT
↑Global Manufacturing Scale and Distribution
PPG's extensive global manufacturing footprint and established distribution network create significant barriers to entry for smaller competitors. This scale allows for cost efficiencies and broad market reach.
↑Brand Reputation and Customer Loyalty
Decades of delivering reliable coatings and materials have built strong brand recognition and customer loyalty. This trust translates into repeat business and a preference for PPG products.
↑Proprietary Technology and R&D Investment
Continuous investment in research and development yields specialized, high-performance coatings. These patented technologies offer unique solutions that are difficult for competitors to replicate.
INVESTMENT RISKS
↓Economic Downturns Affecting End Markets
PPG's performance is tied to cyclical industries like automotive and construction. Significant economic slowdowns can reduce demand for its products.
↓Regulatory and Environmental Compliance Costs
Increasingly stringent environmental regulations globally require ongoing investment in compliance and product reformulation. Non-compliance can lead to fines and reputational damage.
↓Technological Disruption in Coating Applications
Emerging technologies in material science or application methods could potentially disrupt traditional coating markets. PPG must adapt to these shifts to maintain its competitive edge.
Base case
PPG base case PE valuation
At a current price of $111.91, the base case PE valuation puts PPG fair value near $109.29 per share. That figure assumes 2.8% yearly earnings growth, a target PE multiple of 16x, and a 10% discount rate.
Intrinsic Value
$109.29
Margin of safety
-2.4%
Expected annual return
-0.5%
Base case assumptions: 2.8% annual earnings growth, 16x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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)
15.9x
PEG Ratio
0.27
Earnings Yield
6.29%
ROE (TTM)
68.4%
Revenue/Share (TTM)
$73.50
Dividend Yield
2.54%
Debt/Equity
n/m
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 15.9x combined with a PEG ratio of 0.27 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 (15.9x) against the Chemicals - Specialty median to assess relative pricing, (2) check the PEG ratio (0.27) 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 0.27, calculated by dividing the PE ratio (15.9x) 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 68.4%, 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.