PPG Industries, Inc. (PPG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+2.4%

$128.18

vs $125.14 price

Levered DCF

$121.07

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.9

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	14.72×	25.04×	27.8×	28.91×	28.46×	32.26×	25.43×	18.59×
P/B	2.92×	4.12×	4.51×	4.5×	6.52×	6×	5.98×	5.39×
P/S	1.46×	1.76×	2.17×	1.9×	2.44×	2.47×	2.09×	1.62×
EV / EBITDA	10.28×	12.79×	16.48×	17.9×	19×	19.38×	15.73×	12.59×
Gross margin	38.0%	41.6%	40.4%	36.1%	38.8%	43.8%	42.9%	41.5%
Operating margin	13.7%	14.4%	12.5%	10.7%	10.0%	12.9%	12.8%	12.1%
Net margin	9.9%	7.0%	7.8%	6.6%	8.6%	7.7%	8.2%	8.7%
Current ratio	1.62×	1.31×	1.47×	1.52×	1.42×	1.41×	1.41×	1.36×
Debt / equity	0.99×	0.94×	0.84×	1.16×	1.19×	1.16×	1.11×	1.08×
Interest coverage	9×	9.49×	8.24×	9.98×	13.93×	12.9×	14.74×	15.78×
Dividend yield	2.7%	2.2%	1.7%	1.9%	1.3%	1.5%	1.5%	1.8%
Payout ratio	39.8%	55.7%	47.1%	55.6%	37.2%	46.8%	37.7%	33.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	19.8%	16.4%	16.2%	15.6%	22.9%	18.6%	23.5%	29.0%
Return on invested capital	9.3%	11.0%	8.9%	7.7%	8.0%	9.0%	10.6%	12.0%
Return on assets	7.1%	5.7%	5.9%	4.9%	6.7%	5.4%	7.0%	8.4%
Free cash flow yield	5.0%	2.5%	5.4%	1.6%	2.9%	5.3%	5.3%	4.2%
Earnings yield	6.8%	4.0%	3.6%	3.5%	3.5%	3.1%	3.9%	5.4%
Enterprise value	$28.9B	$33.1B	$40.4B	$36.2B	$47.4B	$38.9B	$36.3B	$29B
Net debt / EBITDA	2.04×	1.98×	2.08×	3.23×	2.59×	2.38×	2.01×	1.78×
Cash conversion cycle (days)	32	22	16	33	13	5	16	18