Is PPG Industries, Inc. (PPG) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $125.31, PPG Industries, Inc. (PPG) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $45.37 and $211.17 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
The valuation discounts PPG Industries, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 9.2%, with a long-run terminal growth rate of 2.5%. About 74% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 11.6% annual revenue growth for PPG. Our base case instead compounds to about 3.7% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, PPG's modeled DCF value ranges from about $50.51 to $135.06 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what PPG Industries, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of PPG's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind PPG's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $15,875,000,000 | PPG FY2025 10-K (accession 0000079879-26-000046, filed 2026-02-19), calendar year ended 2025-12-31: Net sales from CONTINUING OPERATIONS $15,875M (us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax; 10-K income statement), flat on FY2024's $15,845M and down from FY2023's $16,242M - all three years restated to exclude the U.S. and Canada architectural coatings business, which was sold in December 2024 and is reported in discontinued operations (FY2025 discontinued income +$5M; FY2024 -$228M). The silicas products business, sold in Q4 2024, is out of FY2025 entirely: FY2025 sales had +1% volume, +1% price, +1% FX and -3% from divestitures (silicas, Russia architectural; Q4 release). So FY2025 is a clean continuing-operations base with no sold business inside it. Mix: Industrial Coatings $6,524M, Performance Coatings $5,513M, Global Architectural Coatings $3,838M (now Europe/Latin America/Asia only). CROSS-CHECK: H1 2026 net sales $8,425M, +6.9% on H1 2025's $7,879M (FX +4%, price +2%, volume +1%; 10-Q); trailing twelve months to 2026-06-30 = $8,425M + H2 2025 $7,996M = $16,421M. UNCHANGED as the base; the DCF grows it by forecast.revenue_growth. |
| Base EBIT margin | 13.4% | PPG Q4/FY2025 earnings release, 8-K Ex-99 (accession 0000079879-26-000025, filed 2026-01-27) + PPG FY2025 10-K (accession 0000079879-26-000046, filed 2026-02-19), calendar year ended 2025-12-31: GAAP EBIT = income from continuing operations before income taxes $2,045M + net interest $88M (interest expense $241M - interest income $153M) = $2,133M / $15,875M = 13.44%. PPG's income statement has no operating-income line; this is the same 'EBIT' PPG itself reconciles in the Q4 release ($1,571M net income + $88M + $458M tax + $16M NCI = $2,133M). It is AFTER every 'non-recurring' item management excludes: $54M restructuring, $24M joint-venture impairment, a $41M tax-matter charge, $16M legacy environmental remediation, -$12M legal gain, -$6M insurance, $1M portfolio, and AFTER $125M of acquisition amortization. Management's adjusted equivalent (adjusted EBITDA $2,749M less depreciation $373M and amortization $125M) is $2,251M = 14.18%; segment income $2,622M less corporate $371M gives the same $2,251M. I use GAAP because PPG books restructuring and legacy environmental charges every year (FY2023-FY2025 restructuring + impairment + environmental never below ~$95M a year), so they are a cost of running PPG, not one-offs. History, continuing ops, same construction: 11.1% FY2023 ($1,797M, after a $190M pension-settlement charge and $160M impairments), 12.1% FY2024 ($1,916M, after $377M restructuring), 13.4% FY2025. CROSS-CHECK: H1 2026 = $1,086M + $53M net interest = $1,139M / $8,425M = 13.52% (Q2 alone 13.3%, after a $25M New Jersey Chrome environmental charge and an $11M legal settlement). |
| Forecast revenue growth | 6% → 3% → 3% → 3% → 3% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 5.2% | US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker. |
| Beta | 1.05 | Yahoo Finance 5Y-monthly beta via yfinance, read 2026-10-05: Published 5Y-monthly beta 1.05, used AS IS - no normalization. A coatings maker selling into autos, industry, construction and aerospace is close to market-average risk, and the figure is in line with the 1.0-1.1 range typical of diversified chemicals. Masco (paint-and-plumbing housing exposure) carries 1.29 in this tracker. Each 0.1 of beta moves the value ~$6/share; 0.95 would give ~$83.60, 1.15 ~$71.25. |
| Terminal growth | 2.5% | Assumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Fair for PPG: continuing sales were essentially flat FY2023-FY2025 ($16.2B -> $15.9B, with divestitures) while organic growth has run ~1-4% a year. 3.0% adds ~$6.70/share; 2.0% takes ~$5.80 off. |
| Diluted shares | 224M | PPG Q2 2026 10-Q (accession 0000079879-26-000252, filed 2026-07-29) Note (earnings per share) + PPG Q2 2026 earnings release, 8-K Ex-99 (accession 0000079879-26-000246, filed 2026-07-28): Q2 2026 weighted-average shares assuming dilution 223.9M (basic 223.0M); H1 224.2M; FY2025 227.1M. Shares outstanding were 222.3M at 2026-06-30 (10-Q cover). The count is falling: $790M of buybacks in FY2025 (~3% of shares) and $175M in H1 2026, with $2B of authorization left at year-end 2025. Using the weighted count leans slightly conservative (~$0.55/share vs. the period-end 222.3M). |
| Market price | $125.31 | Delayed quote · as of 2026-11-10 05:59 UTC |
Explore more
Most undervalued stocks (per our valuation) · All valued stocks · Interactive PPG valuation & downloadable modelTickerWorth is an educational DCF tool, not a licensed investment adviser. Figures are estimates derived from public filings and market data and can be wrong.