PPG Valuation

PPG Industries Inc

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106.250

-5.98(-5.328%)1D

Overview
Forecast
Valuation
Earnings

PPG Relative Valuation

PPG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PPG is overvalued; if below, it's undervalued.

Historical Valuation

PPG Industries Inc (PPG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.19 is considered Undervalued compared with the five-year average of 18.16. The fair price of PPG Industries Inc (PPG) is between 128.12 to 166.87 according to relative valuation methord. Compared to the current price of 112.23 USD , PPG Industries Inc is Undervalued By 12.4%.

Relative Value

Fair Zone

128.12-166.87

Current Price：112.23

12.4%

Undervalued

14.19

Trailing

Forward

11.28

EV/EBITDA

PPG Industries Inc. (PPG) has a current EV/EBITDA of 11.28. The 5-year average EV/EBITDA is 13.33. The thresholds are as follows: Strongly Undervalued below 9.65, Undervalued between 9.65 and 11.49, Fairly Valued between 15.17 and 11.49, Overvalued between 15.17 and 17.01, and Strongly Overvalued above 17.01. The current Forward EV/EBITDA of 11.28 falls within the Undervalued range.

13.32

EV/EBIT

PPG Industries Inc. (PPG) has a current EV/EBIT of 13.32. The 5-year average EV/EBIT is 16.10. The thresholds are as follows: Strongly Undervalued below 11.05, Undervalued between 11.05 and 13.58, Fairly Valued between 18.62 and 13.58, Overvalued between 18.62 and 21.15, and Strongly Overvalued above 21.15. The current Forward EV/EBIT of 13.32 falls within the Undervalued range.

1.66

PPG Industries Inc. (PPG) has a current PS of 1.66. The 5-year average PS is 1.83. The thresholds are as follows: Strongly Undervalued below 1.35, Undervalued between 1.35 and 1.59, Fairly Valued between 2.07 and 1.59, Overvalued between 2.07 and 2.31, and Strongly Overvalued above 2.31. The current Forward PS of 1.66 falls within the Historic Trend Line -Fairly Valued range.

10.09

P/OCF

PPG Industries Inc. (PPG) has a current P/OCF of 10.09. The 5-year average P/OCF is 15.36. The thresholds are as follows: Strongly Undervalued below 7.73, Undervalued between 7.73 and 11.54, Fairly Valued between 19.17 and 11.54, Overvalued between 19.17 and 22.98, and Strongly Overvalued above 22.98. The current Forward P/OCF of 10.09 falls within the Undervalued range.

13.67

P/FCF

PPG Industries Inc. (PPG) has a current P/FCF of 13.67. The 5-year average P/FCF is 20.14. The thresholds are as follows: Strongly Undervalued below 9.21, Undervalued between 9.21 and 14.67, Fairly Valued between 25.61 and 14.67, Overvalued between 25.61 and 31.08, and Strongly Overvalued above 31.08. The current Forward P/FCF of 13.67 falls within the Undervalued range.

PPG Industries Inc (PPG) has a current Price-to-Book (P/B) ratio of 3.73. Compared to its 3-year average P/B ratio of 4.16 , the current P/B ratio is approximately -10.20% higher. Relative to its 5-year average P/B ratio of 4.85, the current P/B ratio is about -23.03% higher. PPG Industries Inc (PPG) has a Forward Free Cash Flow (FCF) yield of approximately 2.98%. Compared to its 3-year average FCF yield of 3.35%, the current FCF yield is approximately -11.12% lower. Relative to its 5-year average FCF yield of 3.78% , the current FCF yield is about -21.17% lower.

3.73

P/B

Median3y

4.16

Median5y

4.85

2.98

FCF Yield

Median3y

3.35

Median5y

3.78

Competitors Valuation Multiple

The average P/S ratio for PPG's competitors is 2.04, providing a benchmark for relative valuation. PPG Industries Inc Corp (PPG) exhibits a P/S ratio of 1.66, which is -18.69% above the industry average. Given its robust revenue growth of -12.49%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

RPM International Inc

Axalta Coating Systems Ltd

Performance Decomposition

Market capitalization of PPG decreased by 16.33% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from 19.85 to 19.58.

The secondary factor is the Margin Expansion, contributed -2.50%to the performance.

Overall, the performance of PPG in the past 1 year is driven by P/E Change. Which is more unsustainable.

-12.49%

4.79B → 4.20B

Revenue Growth

-2.50%

11.20 → 10.92

Margin Expansion

-1.34%

19.85 → 19.58

P/E Change

-16.33%