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PPG Industries, Inc. — Intrinsic Value & Fair Price

PPG
NYSEBasic MaterialsChemicals - SpecialtyCIK 0000079879ppg.comAbout PPG
Last close · Oct 16, 2026107.34−0.47 (−0.44%)
Market cap$23.9B
Model value · DCF · Perpetuity growth · 5y
118.80
PPG Industries closed at $107.34 — undervalued by 10% vs model.
74.01the model's range266.12

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
51.61 – 174.44
Wall St. target
130.50 18% below
Below model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.67%
Past 2 years
low 1.95%high 2.95%
Dividends per share, a year at a time
$2.21Aug ’21$2.39Aug ’22$2.51Aug ’23$2.63Aug ’24$2.75Aug ’25$2.87TTM
Dividends / free cash flow, FY2025
54.0%
Raised
42+ years in a row
Growth, 5 yrs
5.4% a year
Last change
+4.2% · Aug 2026
Every payment, with ex-dates · latest $0.74, paid Sep 11, 2026

Research on PPG

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How it is valued

Valued asCyclical
Revenue declining (~-7% recent)Moderate margins (10% net margin)Pays dividendsHighly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
15.5×
EV / EBITDA
10.3×
FCF yield
4.8%
Dividend yield, TTM
2.67%
Beta
1.05
Cost of capital (WACC)
8.10%
Full financials

Analyst actions

third-party, quoted
10-12Barclays · target136.00
10-09Goldman Sachs · target128.00
10-05UBS · target116.00
07-17B of A Securities · “Buy” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just PPG. No account.

About PPG Industries

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.

CEO
Timothy Knavish
Headquarters
Pittsburgh, PA
Employees
43,500
IPO
1980-03-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.