PPG Industries, Inc.

DB:PPQ Stock Report

Market Cap: €26.9b

PPG Industries Valuation

Is PPQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PPQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPQ (€117.3) is trading below our estimate of fair value (€164.21)

Significantly Below Fair Value: PPQ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PPQ?

Key metric: As PPQ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PPQ. This is calculated by dividing PPQ's market cap by their current earnings.
What is PPQ's PE Ratio?
PE Ratio19x
EarningsUS$1.49b
Market CapUS$28.28b

Price to Earnings Ratio vs Peers

How does PPQ's PE Ratio compare to its peers?

The above table shows the PE ratio for PPQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.4x
SY1 Symrise
36.5x13.6%€14.3b
EVK Evonik Industries
34x32.6%€7.8b
WCH Wacker Chemie
27.5x36.4%€3.4b
ACT AlzChem Group
11.7x12.8%€586.2m
PPQ PPG Industries
19x8.1%€28.3b

Price-To-Earnings vs Peers: PPQ is good value based on its Price-To-Earnings Ratio (19x) compared to the peer average (27.8x).

Price to Earnings Ratio vs Industry

How does PPQ's PE Ratio compare vs other companies in the European Chemicals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PPQ 19.0xIndustry Avg. 17.0xNo. of Companies12PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PPQ is expensive based on its Price-To-Earnings Ratio (19x) compared to the European Chemicals industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is PPQ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PPQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PPQ's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PPQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€117.30
€139.34
+18.8%
7.8%€158.28€114.42n/a23
Dec ’25€118.80
€140.71
+18.4%
7.4%€158.45€114.54n/a24
Nov ’25€113.45
€136.61
+20.4%
7.4%€153.78€111.17n/a24
Oct ’25n/a
€134.61
0%
6.6%€149.08€105.98n/a24
Sep ’25n/a
€138.08
0%
6.8%€152.89€108.68n/a23
Aug ’25€114.50
€138.08
+20.6%
6.8%€152.89€108.68n/a23
Jul ’25n/a
€145.02
0%
7.0%€162.98€109.89n/a23
Jun ’25n/a
€145.10
0%
6.9%€162.44€109.53n/a23
May ’25n/a
€146.37
0%
6.7%€163.68€110.37n/a24
Apr ’25€134.00
€146.61
+9.4%
7.5%€162.93€108.93n/a23
Mar ’25n/a
€146.07
0%
7.8%€161.35€107.87n/a23
Feb ’25€131.00
€146.28
+11.7%
7.6%€161.00€107.64n/a24
Jan ’25n/a
€140.78
0%
8.5%€158.15€106.34n/a22
Dec ’24€130.00
€139.63
+7.4%
7.8%€154.75€106.51€118.8022
Nov ’24n/a
€143.59
0%
7.3%€155.67€109.72€113.4523
Oct ’24n/a
€149.92
0%
8.1%€168.46€107.63n/a23
Sep ’24n/a
€146.06
0%
8.4%€164.99€105.41n/a24
Aug ’24n/a
€142.65
0%
8.8%€162.25€103.66€114.5025
Jul ’24n/a
€140.17
0%
8.1%€156.09€105.29n/a25
Jun ’24€125.00
€141.64
+13.3%
8.2%€158.13€106.67n/a24
May ’24€126.00
€136.89
+8.6%
8.3%€154.04€103.91n/a22
Apr ’24n/a
€130.73
0%
9.4%€150.33€105.90€134.0023
Mar ’24€122.00
€127.25
+4.3%
9.2%€146.26€103.03n/a24
Feb ’24€120.00
€127.25
+6.0%
9.2%€146.26€103.03€131.0024
Jan ’24n/a
€123.86
0%
10.8%€146.26€98.13n/a23
Dec ’23n/a
€129.52
0%
10.6%€155.88€105.27€130.0023

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 14:35
End of Day Share Price 2024/12/13 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

PPG Industries, Inc. is covered by 46 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William SeleskyArgus Research Company
Ghansham PanjabiBaird
Ishan MajumdarBaptista Research