NYSE
PPG
Last Price
US $122.61
KEY FIGURES
MKT CAP
$27.5B
EPS
TTM
$7.09
PEG
TTM
0.35x
P/E
TTM
17.51x
P/S
TTM
1.73x
YIELD
2.30%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
31.80%
Return on equity
ROIC: 8.82%
Valuation History
17.5X
Price to Earnings
EV/EBITDA: 11.8X
Cash flow
Profit margin
2.79%
(FY vs FY)
EBITDA Y/Y
6.97%
(FY vs FY)
Cash flow Y/Y
-8.63%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $122.61
-85.31%
Default assumptions
EBITDA Multiple
Fair Value
Market $122.61
-47.46%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
PPG Industries, Inc. cash flow to debt ratio of 26.07% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
PPG Industries, Inc.'s free cash flow has increased 66.38% from $699.00M last year to $1.16G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
PPG Industries, Inc.'s debt to equity ratio is 0.95, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
PPG Industries, Inc.'s debt has increased relative to shareholder equity from 0.94 last year to 0.95 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
PPG Industries, Inc. has a net debt to EBITDA ratio of 1.88x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
PPG Industries, Inc.'s interest coverage ratio of 8.39 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
PPG Industries, Inc.'s profit margin has increased (39.59%) in the last year from 7.04% to 9.83%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
PPG Industries, Inc.'s short-term assets of $7.96G exceed its short-term liabilities of $4.90G
Increasing performance - ROA.
PPG Industries, Inc.'s return on assets of 7.16% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
PPG Industries, Inc.'s return on equity of 31.80%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
PPG Industries, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
PPG Industries, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
PPG Industries, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
PPG Industries, Inc. has a free cash flow yield of 4.23%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
PPG Industries, Inc.'s yearly earnings has increased 41.22% since last year from $1.12G to $1.58G, signaling increasing performance
Increasing performance - Healthy revenue growth.
PPG Industries, Inc.'s yearly revenue has increased 0.19% since last year from $15.85G to $15.88G, signaling increasing performance
Increasing performance - ROIC.
ROIC 8.82% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
PPG Industries, Inc.'s 3-year revenue CAGR of 0.55% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
PPG Industries, Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
PPG Industries, Inc. had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
PPG Industries, Inc. is overvalued relative to its fair value price of 18.01 based on Discounted Cash Flow model
Undervalued - Earnings yield.
PPG Industries, Inc. has an earnings yield of 5.75%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
PPG Industries, Inc. is overvalued relative to its fair value price of 64.42 based on EBITDA multiple model
Undervalued - EV/EBITDA.
PPG Industries, Inc. has an EV/EBITDA ratio of 11.82x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
PPG Industries, Inc. has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
PPG Industries, Inc. has negative shareholder equity; price-to-book is not meaningful and the check fails
Undervalued - P/S ratio.
PPG Industries, Inc. has a price-to-sales ratio of 1.70x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue