As of June 15, 2026, PPG Industries Inc's estimated intrinsic value ranges from $89.14 to $166.09 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $166.09 | +39.2% |
| Discounted Cash Flow (5Y) | $144.09 | +20.7% |
| Dividend Discount Model (Multi-Stage) | $114.86 | -3.8% |
| Dividend Discount Model (Stable) | $89.14 | -25.3% |
| Earnings Power Value | $120.72 | +1.2% |
Is PPG Industries Inc (PPG) undervalued or overvalued?
With the current market price at $119.34, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate PPG Industries Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.93 | 0.97 |
| Cost of equity | 8.1% | 10.3% |
| Cost of debt | 4.0% | 4.8% |
| Tax rate | 23.1% | 24.3% |
| Debt/Equity ratio | 0.27 | 0.27 |
| After-tax WACC | 7.0% | 8.9% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $144 | $37,688M | 76.3% |
| 10-Year Growth | $166 | $42,592M | 58.9% |
| 5-Year EBITDA | $156 | $40,404M | 77.9% |
| 10-Year EBITDA | $177 | $44,920M | 61.1% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $2,549M |
| Discount Rate (WACC) | 8.9% - 7.0% |
| Enterprise Value | $28,750M - $36,205M |
| Net Debt | $5,570M |
| Equity Value | $23,180M - $30,635M |
| Outstanding Shares | 223M |
| Fair Value | $104 - $137 |
| Selected Fair Value | $120.72 |
| Metric | Value |
|---|---|
| Market Capitalization | $26601M |
| Enterprise Value | $32171M |
| Trailing P/E | 16.78 |
| Forward P/E | 14.64 |
| Trailing EV/EBITDA | 11.40 |
| Current Dividend Yield | 237.96% |
| Dividend Growth Rate (5Y) | 4.04% |
| Debt-to-Equity Ratio | 0.27 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $49.83 |
| Discounted Cash Flow (5Y) | 25% | $36.02 |
| Dividend Discount Model (Multi-Stage) | 20% | $22.97 |
| Dividend Discount Model (Stable) | 15% | $13.37 |
| Earnings Power Value | 10% | $12.07 |
| Weighted Average | 100% | $134.26 |
Based on our comprehensive valuation analysis, PPG Industries Inc's intrinsic value is $134.26, which is approximately 12.5% above the current market price of $119.34.
Key investment considerations:
Given these factors, we believe PPG Industries Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.