Upside case
Bull case
$133+25.1%
PPG would need investors to value it at roughly 17x earnings — about 3x more generous than today's 14x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 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
$128
+20.0% vs today
Scenario Range
$56 – $133
Model bear to bull value window
Coverage
38
Published analyst ratings
Valuation Context
13.5x
Forward P/E · Market cap $23.8B
PPG price targets
Three scenarios for where PPG stock could go
Current
~$106
Confidence
56 / 100
Updated
May 1, 2026
Where we are now
Current · $106
Bear
$56
Base
$120
Bull
$133
Market caseClosest to today
Base case
$120+12.8%
At 15x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$56-47.7%
If investor confidence fades or macro conditions deteriorate, a 6x multiple contraction could push PPG down roughly 48% 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
$23.8B
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
$16.3B
+1.3% YoY
FY2
$16.5B
+1.2% YoY
EPS Outlook
FY1
$7.47
+5.8% YoY
FY2
$7.81
+4.5% YoY
Trailing FCF (TTM)$1.2B
FCF Margin: 7.6%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
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
Significantly Undervalued
Fair value est. $141 — implies +30.8% from today's price.
Upside to Fair Value
30.8%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PPG
15.4x
vs
S&P 500
25.1x
39% discount
vs Basic Materials Trailing P/E
PPG
15.4x
vs
Basic Materials
22.3x
31% discount
vs PPG 5Y Avg P/E
Today
15.4x
vs
5Y Average
25.1x
39% discount
Forward PE
13.5x
S&P 500
19.1x
-29%
Basic Materials
15.2x
-11%
5Y Avg
—
—
Trailing PE
15.4x
S&P 500
25.1x
-39%
Basic Materials
22.3x
-31%
5Y Avg
25.1x
-39%
PEG Ratio
1.67x
S&P 500
1.72x
-3%
Basic Materials
1.17x
+42%
5Y Avg
—
—
EV/EBITDA
10.8x
S&P 500
15.2x
-29%
Basic Materials
11.0x
-2%
5Y Avg
15.3x
-29%
Price/FCF
20.5x
S&P 500
21.1x
-3%
Basic Materials
25.6x
-20%
5Y Avg
35.2x
-42%
Price/Sales
1.5x
S&P 500
3.1x
-52%
Basic Materials
1.9x
-21%
5Y Avg
2.0x
-23%
Dividend Yield
2.60%
S&P 500
1.87%
+39%
Basic Materials
1.32%
+96%
5Y Avg
1.96%
+32%
| Metric | PPG | S&P 500 | Basic Materials | 5Y Avg PPG |
|---|---|---|---|---|
| Forward PE | 13.5x | 19.1x-29% | 15.2x-11% | — |
| Trailing PE | 15.4x | 25.1x-39% | 22.3x-31% | 25.1x-39% |
| PEG Ratio | 1.67x | 1.72x | 1.17x+42% | — |
| EV/EBITDA | 10.8x | 15.2x-29% | 11.0x | 15.3x-29% |
| Price/FCF | 20.5x | 21.1x | 25.6x-20% | 35.2x-42% |
| Price/Sales | 1.5x | 3.1x-52% | 1.9x-21% | 2.0x-23% |
| Dividend Yield | 2.60% | 1.87% | 1.32% | 1.96% |
PPG trades above S&P 500 benchmarks on 0 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 5.9% 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
5.9%
Dividend
2.6%
Buyback
3.3%
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 April 29, 2026
High Risk
Cyclical End Markets
PPG's performance is closely tied to the cyclical nature of the automotive, industrial, and construction sectors. Weakness or slowdowns in these key markets can lead to reduced demand for PPG's products.
High Risk
Global Economic Uncertainty
Broader economic conditions, including inflation, interest rates, and geopolitical issues, can disrupt PPG's global operations. Economic slowdowns in regions like Europe and China pose significant risks to customer demand and supply chains.
High Risk
Debt Obligations
PPG has significant debt repayment obligations, including a notable maturity in the near term. This could strain cash flow and limit financial flexibility if not managed effectively.
Medium
Raw Material and Logistics Costs
Fluctuations in the cost and availability of raw materials, energy, labor, and logistics can pressure PPG's margins. Events like the Iran war have contributed to rising costs, impacting profitability.
Medium
Execution of Strategic Initiatives
PPG's strategic shifts, such as portfolio streamlining and focusing on specific segments, carry execution risks. Challenges may arise in resource allocation and maintaining customer relationships during transitions.
Medium
Intensifying Competition
PPG faces increasing competition in the coatings industry, with some analysts noting market share losses in certain segments. New entrants may offer cheaper products or better incentives, increasing pricing pressure.
Lower
Supply Chain Disruptions
Extreme weather events and global disruptions can lead to operational disruptions and production delays for PPG. This may result in increased costs and affect overall efficiency.
Lower
Climate-Related Risks
PPG faces physical risks from extreme weather events impacting its facilities and supply chains. Additionally, the transition to a low-carbon economy presents risks related to technology and regulations.
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 April 29, 2026
Strategic Portfolio Realignment
PPG has been actively divesting lower-margin assets, such as its U.S. and Canadian architectural coatings business, to concentrate on more profitable areas like aerospace, electronic materials, and specialty coatings. This strategic shift aims to improve operating margins and focus on areas with higher growth potential.
Focus on High-Growth Markets
The company is prioritizing investments in segments like electric vehicle battery coatings, aerospace sealants, and protective marine coatings, aligning with long-term structural growth trends. They are also expanding their presence in emerging markets, particularly in the Asia-Pacific and Latin America regions, to capitalize on infrastructure and automotive demand.
Innovation and Sustainability
PPG is investing significantly in research and development (approximately 3% of annual sales, over $500 million) to drive innovation, with a particular emphasis on sustainable products. Their goal is to increase the share of 'Sustainable Advantage' products from 44% in 2024 to 50% by 2030.
Manufacturing and Operational Investments
PPG is investing in advanced manufacturing capabilities, including a new plant in Tennessee set to open in 2026, to enhance production and efficiency. They are also implementing cost-saving initiatives and operational efficiencies to improve margins.
Financial Strength and Shareholder Returns
The company has a history of consistent dividend increases (over 50 years) and has returned significant capital to shareholders through dividends and share repurchases. Analysts project steady margin improvement and modest organic growth, with an anticipated adjusted EPS CAGR of 8-12% over the next three years.
Market Position and Demand
PPG holds market leadership in providing solutions for appearance, durability, and functionality across various surfaces. Demand is growing in sectors like electric vehicle battery makers and large infrastructure projects, with the aerospace segment showing robust demand and double-digit organic growth.
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
$106.41
52W Range Position
33%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$93.39
+13.9% from the low
52-Week High
$133.43
-20.3% from the high
1 Month
+2.46%
3 Month
-14.48%
YTD
+2.0%
1 Year
-3.5%
3Y CAGR
-8.3%
5Y CAGR
-9.9%
10Y CAGR
-0.2%
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
13.5x
vs 13.8x median
-2% below peer median
Revenue Growth
+1.3%
vs +2.6% median
-48% 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. | $23.8B | 13.5x | +1.3% | 9.8% | Buy | +20.0% |
SHW SHW The Sherwin-Williams Company | $77.1B | 26.6x | +2.9% | 10.9% | Buy | +24.6% |
RPM RPM RPM International Inc. | $12.7B | 18.1x | +2.6% | 8.8% | Buy | +23.4% |
AXT AXTA Axalta Coating Systems Ltd. | $5.8B | 10.6x | +0.6% | 7.2% | Hold | +28.4% |
DOW DOW Dow Inc. | $29.4B | 13.8x | -1.0% | -7.0% | Hold | -3.1% |
LYB LYB LyondellBasell Industries N.V. | $25.1B | 10.8x | +5.2% | -3.4% | Hold | -5.3% |
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 5.9% annually — 2.60% through dividends and 3.3% through buybacks.
Dividend SustainableFCF Adequate
Total Shareholder Yield
5.9%
Dividend + buyback return per year
Buyback Yield
3.3%
Dividend Yield
2.60%
Payout Ratio
39.8%
How PPG Splits Its Return
Div 2.60%
Buyback 3.3%
Dividend 2.60%Buybacks 3.3%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.77
Growth Streak
Consecutive years of dividend increases
42Y
3Y Div CAGR
4.7%
5Y Div CAGR
5.8%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 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
3.3%
Shares Outstanding
Current diluted share count from the screening snapshot
224M
At 3.3%/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 $128, implying +20.0% from the current price of $106. The bear case scenario is $56 and the bull case is $133.
02What is the PPG stock price target for 2026?
The Wall Street consensus price target for PPG is $128 based on 38 analyst estimates. The high-end target is $135 (+26.9% from today), and the low-end target is $119 (+11.8%). The base case model target is $120.
03Is PPG Industries, Inc. (PPG) stock overvalued in 2026?
PPG trades at 13.5x 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 significantly undervalued. 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) Cyclical End Markets — PPG's performance is closely tied to the cyclical nature of the automotive, industrial, and construction sectors. (2) Global Economic Uncertainty — Broader economic conditions, including inflation, interest rates, and geopolitical issues, can disrupt PPG's global operations. (3) Debt Obligations — PPG has significant debt repayment obligations, including a notable maturity in the near term. 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 $16.3B (+1.3% year-over-year) and EPS of $7.47 (+5.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $16.5B in revenue.
06When does PPG Industries, Inc. (PPG) report its next earnings?
A confirmed upcoming earnings date for PPG is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
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 (2.6% yield) and share repurchases ($790M TTM).