Upside case
Bull case
$170+43.6%
PPG would need investors to value it at roughly 22x earnings — about 7x more generous than today's 15x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
PPG Industries, Inc. (PPG) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
38
analysts
20 bullish · 2 bearish · 38 covering PPG
Strong Buy
0
Buy
20
Hold
16
Sell
2
Strong Sell
0
Consensus Target
$129
+8.7% vs today
Scenario Range
$81 – $170
Model bear to bull value window
Coverage
38
Published analyst ratings
Valuation Context
15.0x
Forward P/E · Market cap $26.5B
PPG price targets
Three scenarios for where PPG stock could go
Current
~$118
Confidence
50 / 100
Updated
Jun 18, 2026
Where we are now
Current · $118
Bear
$81
Base
$129
Bull
$170
Market caseClosest to today
Base case
$129+9.0%
This is close to how the market is already pricing PPG — at roughly 16x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$81-31.4%
If investor confidence fades or macro conditions deteriorate, a 5x multiple contraction could push PPG down roughly 31% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
PPG Industries, Inc.
PPG · NYSEBasic MaterialsChemicals - SpecialtyDecember year-end
PPG Industries is a global manufacturer of paints, coatings, and specialty materials for industrial, commercial, and consumer applications. It generates revenue primarily through two segments: Performance Coatings (roughly 60% of sales) for automotive, aerospace, and architectural markets, and Industrial Coatings (roughly 40%) for packaging, automotive OEM, and general industrial uses. The company's competitive advantage lies in its extensive global manufacturing footprint, strong brand recognition across multiple end markets, and deep technical expertise in coatings chemistry that creates switching costs for customers.
Market Cap
$26.5B
Revenue TTM
$16.1B
Net Income TTM
$1.6B
Net Margin
9.8%
PPG Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
58%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
+1.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 2 of 4Q3 2025
EPS
$2.22/$2.23
Revenue
$4.2B/$4.2B
Q4 2025
EPS
$2.13/$2.10
Revenue
$4.1B/$4.0B
Q1 2026
EPS
$1.51/$1.58
Revenue
$3.9B/$3.8B
Q2 2026
EPS
$1.83/$1.78
Revenue
$3.9B/$3.9B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.22/$2.23 | -0.4% | $4.2B/$4.2B | +0.8% |
| Q4 2025 | $2.13/$2.10 | +1.4% | $4.1B/$4.0B | +0.9% |
| Q1 2026 | $1.51/$1.58 | -4.4% | $3.9B/$3.8B | +3.5% |
| Q2 2026 | $1.83/$1.78 | +2.8% | $3.9B/$3.9B | +2.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$16.5B
+2.4% YoY
FY2
$17.0B
+2.8% YoY
EPS Outlook
FY1
$7.18
+1.7% YoY
FY2
$7.47
+4.0% YoY
Trailing FCF (TTM)$1.2B
FCF Margin: 7.6%
Next Earnings
August 4, 2026
Expected EPS
$2.25
Expected Revenue
$4.4B
PPG beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
PPG Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $15.9B
Product Mix
Latest annual revenue by segment or product family
Industrial Coatings
41.1%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
33.8%
+0.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Industrial Coatings is the largest disclosed segment at 41.1% of FY 2025 revenue, with no year-over-year comparison yet.
North America is the largest reported region at 33.8%, up 0.4% YoY.
PPG Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $150 — implies +26.5% from today's price.
Upside to Fair Value
26.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PPG
17.1x
vs
S&P 500
24.4x
30% discount
vs Basic Materials Trailing P/E
PPG
17.1x
vs
Basic Materials
23.6x
28% discount
vs PPG 5Y Avg P/E
Today
17.1x
vs
5Y Average
25.1x
32% discount
Forward PE
15.0x
S&P 500
18.8x
-20%
Basic Materials
14.9x
+1%
5Y Avg
—
—
Trailing PE
17.1x
S&P 500
24.4x
-30%
Basic Materials
23.6x
-28%
5Y Avg
25.1x
-32%
PEG Ratio
1.85x
S&P 500
1.66x
+12%
Basic Materials
1.23x
+51%
5Y Avg
—
—
EV/EBITDA
11.8x
S&P 500
15.2x
-23%
Basic Materials
11.0x
+7%
5Y Avg
15.3x
-23%
Price/FCF
22.7x
S&P 500
20.7x
+10%
Basic Materials
29.0x
-22%
5Y Avg
35.2x
-35%
Price/Sales
1.7x
S&P 500
3.1x
-46%
Basic Materials
1.9x
-11%
5Y Avg
2.0x
-15%
Dividend Yield
2.34%
S&P 500
1.91%
+22%
Basic Materials
1.41%
+66%
5Y Avg
1.96%
+19%
| Metric | PPG | S&P 500 | Basic Materials | 5Y Avg PPG |
|---|---|---|---|---|
| Forward PE | 15.0x | 18.8x-20% | 14.9x | — |
| Trailing PE | 17.1x | 24.4x-30% | 23.6x-28% | 25.1x-32% |
| PEG Ratio | 1.85x | 1.66x+12% | 1.23x+51% | — |
| EV/EBITDA | 11.8x | 15.2x-23% | 11.0x | 15.3x-23% |
| Price/FCF | 22.7x | 20.7x | 29.0x-22% | 35.2x-35% |
| Price/Sales | 1.7x | 3.1x-46% | 1.9x-11% | 2.0x-15% |
| Dividend Yield | 2.34% | 1.91% | 1.41% | 1.96% |
PPG trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolPPG Financial Health
Verdict
Strong
PPG 23.5% ROIC signals a durable competitive advantage — returns 5.3% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$16.1B
Revenue Growth
TTM vs prior year
+10.0%
Gross Margin
Gross profit as a share of revenue
40.6%
Operating Margin
Operating income divided by revenue
12.8%
Net Margin
Net income divided by revenue
9.8%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.06
Free Cash Flow (TTM)
Cash generation after capex
$1.2B
FCF Margin
FCF as share of revenue — the primary cash quality signal
7.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
23.5%
ROA
Return on assets, trailing twelve months
8.5%
Cash & Equivalents
Liquid assets on the balance sheet
$2.2B
Net Debt
Total debt minus cash
$5.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
4.3× FCF
~4.3 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
31.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
5.3%
Dividend
2.3%
Buyback
3.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$790M
Dividend / Share
Annualized trailing dividend per share
$2.77
Payout Ratio
Share of earnings distributed as dividends
39.8%
Shares Outstanding
Declining as buybacks retire shares
224M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pagePPG Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Geopolitical Risks
Geopolitical conflict in the Middle East has driven up costs for raw materials, energy, and logistics across the coatings value chain.
High Risk
Market Reaction
PPG stock has lost about 5% due to disappointing market reaction to strong Q1 2026 earnings.
Medium
Operational Costs
Increased costs for raw materials, energy, and logistics could pressure margins and profitability.
Medium
Disclosed Risks
PPG Industries disclosed 16 risk factors in its most recent earnings report, indicating potential challenges.
Lower
Competitive Positioning
PPG's long-standing reputation and global presence may mitigate some risks, but competition remains a factor.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why PPG Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Global market leadership
PPG is a trusted global leader in coatings and paints, with operations in over 70 countries and a reputation for innovation and expertise.
Strong brand and moat
PPG has a strong brand and competitive moat, supported by its long history, technical expertise, and trusted relationships with leading manufacturers.
Diverse product portfolio
PPG offers a wide range of paints, coatings, and specialty materials, catering to both consumer and industrial markets globally.
Innovative color solutions
PPG's color stylists and chemists provide innovative coatings that enhance everyday products, driving demand and differentiation.
Historical resilience
With roots dating back to 1883, PPG has demonstrated long-term resilience and adaptability in the coatings and materials industry.
Bullish investment thesis
Analysts highlight PPG's strong moat, valuation, and growth potential, making it a compelling buy for long-term investors.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
PPG Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$118.21
52W Range Position
62%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$93.39
+26.6% from the low
52-Week High
$133.43
-11.4% from the high
1 Month
+14.04%
3 Month
+17.30%
YTD
+13.3%
1 Year
+9.2%
3Y CAGR
-5.9%
5Y CAGR
-6.8%
10Y CAGR
+0.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
PPG vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
15.0x
vs 13.4x median
+12% above peer median
Revenue Growth
+2.4%
vs +3.8% median
-37% below peer median
Net Margin
9.8%
vs 7.2% median
+36% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
PPG PPG PPG Industries, Inc. | $26.5B | 15.0x | +2.4% | 9.8% | Buy | +8.7% |
SHW SHW The Sherwin-Williams Company | $79.1B | 27.4x | +3.8% | 10.9% | Buy | +16.8% |
RPM RPM RPM International Inc. | $13.8B | 19.7x | +4.1% | 8.8% | Buy | +15.4% |
AXT AXTA Axalta Coating Systems Ltd. | $7.4B | 13.4x | +1.3% | 7.2% | Hold | -2.2% |
DOW DOW Dow Inc. | $22.8B | 10.0x | +4.6% | -7.0% | Hold | +24.0% |
LYB LYB LyondellBasell Industries N.V. | $19.4B | 6.4x | +2.9% | -3.4% | Hold | +33.5% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
PPG Dividend and Capital Return
PPG returns 5.3% annually — 2.34% through dividends and 3.0% through buybacks.
Dividend SustainableFCF Adequate
Total Shareholder Yield
5.3%
Dividend + buyback return per year
Buyback Yield
3.0%
Dividend Yield
2.34%
Payout Ratio
39.8%
How PPG Splits Its Return
Div 2.34%
Buyback 3.0%
Dividend 2.34%Buybacks 3.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.77
Growth Streak
Consecutive years of dividend increases
43Y
3Y Div CAGR
4.7%
5Y Div CAGR
5.8%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$790M
Estimated Shares Retired
7M
Approx. Share Reduction
3.0%
Shares Outstanding
Current diluted share count from the screening snapshot
224M
At 3.0%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.42 | — | — | — |
| 2025 | $2.78 | +4.5% | 3.4% | 6.1% |
| 2024 | $2.66 | +4.7% | 2.7% | 4.9% |
| 2023 | $2.54 | +5.0% | 0.2% | 1.9% |
| 2022 | $2.42 | +7.1% | 0.6% | 2.5% |
FAQ
7 questionsPPG Investor Questions
Common questions answered from live analyst data and company financials.
01Is PPG Industries, Inc. (PPG) stock a buy or sell in 2026?
PPG Industries, Inc. (PPG) is rated Buy by Wall Street analysts as of 2026. Of 38 analysts covering the stock, 20 rate it Buy or Strong Buy, 16 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $129, implying +8.7% from the current price of $118. The bear case scenario is $81 and the bull case is $170.
02What is the PPG stock price target for 2026?
The Wall Street consensus price target for PPG is $129 based on 38 analyst estimates. The high-end target is $140 (+18.4% from today), and the low-end target is $119 (+0.7%). The base case model target is $129.
03Is PPG Industries, Inc. (PPG) stock overvalued in 2026?
PPG trades at 15.0x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for PPG Industries, Inc. (PPG) stock in 2026?
The primary risks for PPG in 2026 are: (1) Geopolitical Risks — Geopolitical conflict in the Middle East has driven up costs for raw materials, energy, and logistics across the coatings value chain. (2) Market Reaction — PPG stock has lost about 5% due to disappointing market reaction to strong Q1 2026 earnings. (3) Operational Costs — Increased costs for raw materials, energy, and logistics could pressure margins and profitability. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is PPG Industries, Inc.'s revenue and earnings forecast?
Analyst consensus estimates PPG will report consensus revenue of $16.5B (+2.4% year-over-year) and EPS of $7.18 (+1.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $17.0B in revenue.
06When does PPG Industries, Inc. (PPG) report its next earnings?
PPG Industries, Inc. is expected to report its next earnings on approximately 2026-08-04. Consensus expects EPS of $2.25 and revenue of $4.4B. Over recent quarters, PPG has beaten EPS estimates 58% of the time.
07How much free cash flow does PPG Industries, Inc. generate?
PPG Industries, Inc. (PPG) generated $1.2B in free cash flow over the trailing twelve months — a free cash flow margin of 7.6%. PPG returns capital to shareholders through dividends (2.3% yield) and share repurchases ($790M TTM).