PPG Industries (PPG): Examining Valuation After Record Q3 Earnings and Strategic Aerospace Investments

PPG Industries (PPG) delivered record adjusted earnings per share for the third quarter of 2025, driven by steady sales growth in its aerospace, protective, marine, and packaging coatings businesses. The company’s latest update signals operational strength, even as market conditions continue to change.

See our latest analysis for PPG Industries.

While PPG Industries continues to invest in its aerospace operations and expand its range of sustainable filtration products, the share price has struggled to reflect these strengths. Shares have slipped 15% so far this year and marked a one-year total shareholder return of -18.5%. Despite ongoing innovation and steady cash returns to shareholders, momentum remains muted in the near term.

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With PPG’s earnings strength and discounted share price, investors are left to wonder if the current valuation represents an attractive entry point or if the market is already factoring in future growth potential.

Most Popular Narrative: 19.1% Undervalued

With a last close at $98.11 and a narrative fair value set at $121.20, the market appears to be significantly discounting PPG Industries' prospects compared to analyst consensus, despite improving fundamentals and fresh innovation rolling out.

PPG is beginning to realize the benefits of its enterprise growth strategy started in 2023, with a focus on organic sales growth through strategic investments in innovation. This approach is expected to impact revenue positively. There is strong performance and expected continued demand in the Aerospace and Protective & Marine Coatings segments, driven by technology advantage products and share gains. This is likely to enhance revenue and earnings.

Read the complete narrative.

Want to see what’s powering this big gap between stock price and fair value? The narrative hinges on steady organic growth and a strategy that is focused on tech-driven demand. Curious which forward-looking forecasts and margin leaps justify such optimism? Find out what analysts believe could lift this stock well above its current price.

Result: Fair Value of $121.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, setbacks such as unfavorable currency moves or persistent weakness in auto production could disrupt PPG's expected recovery and weigh on future results.

Find out about the key risks to this PPG Industries narrative.

Build Your Own PPG Industries Narrative

If you see the story differently or prefer diving into the numbers yourself, you can review the data and craft your own perspective in just a few minutes, so why not Do it your way

A great starting point for your PPG Industries research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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